BUSINESS CREDO – COOPEREATE AIMS AND OBJECTIVES IN BUSINESS MANAGEMENT

QUESTION: What do you understand by cooperate aims and objectives, how does these relate to what is often referred to as the “business credo” 

ANSWERS ARE WRITTEN BELOW

The purpose of any business organization be it (profit oriented or non profit oriented) is to satisfy the needs of both the organization and the people (society, customers, government etc). Hence, for any organization to satisfy these needs of the above mentioned parties, the organization must put  up a very good, comprehensive and viable plan of action, sales forecast of the product and

the society (viability and acceptability of the product if produced), the mode of operation towards achieving the production objective and organizational goals.

CORPORATE AIMS AND OBJECTIVES          

In the classical period of management and business operations, organization’s had only one objectives (which is profit making) this statement was proved by reflecting on the assumption of Fredrick winslow tailor (the father of scientific management) during his time at Midvale steel company. Although, his principles were more on efficiency (making the best use of the available but scarce resources through a group of well trained employees and best scientific methods with less emphasis on workers welfare and motivation.

 In the modern/human relations era, the reverse is almost the case, because apart from the first objective of organizations (which is profit making), there are other obligations, aims, objectives and responsibilities of any form of organization.

            If any/an organization (especially profit oriented) must operate in a healthy society, that organization must respond favourably to the ever-changing business environmental demand and they must justify their existence by offering a desirable goods and services and satisfaction to all the so called stake-holders in the society, viz

(1)              share-holders

(2)              employees

(3)              customers

(4)              suppliers

(5)              government

(6)              community the six small public (Imaga 2000)

HOW DO THESE RELATE TO WHAT IS OFTEN REFEREED TO AS BUSINESS CREDO

            Business credo is nothing more or less than the organizational mission statement.

This mission (credo) is what the organization believe, it can give or do to the society, the organization itself and the market. Business credo is simply, the responsibilities of the organization to the following parties.

1.                  Their customers

2.                  Their employees

3.                  The executives offices

4.                  The community where the organization is situated

5.                  The stake-holders    

These people are at the centre of any formal organization, so should not be underrated.