Rahul started a business of preparing and supplying sweets through home delivery at a place that is used both for production and as a showroom for sale in New Delhi. He made a plan forecasting the sales of different types of sweets in various areas of New Delhi for each month of the year to earn a profit of 15% on capital employed. He set a sales target of ₹1000000 in the current year with an 8% increase every year. He set the criteria of selecting suppliers from whom he would make purchases of raw material. The planning paid off and the business was able to achieve its targets.

'He set a sales target of ₹1000000 in the current year with an 8% increase every year'

Which of the following is indicated in above line?

Objective

The correct answer is option 1- Objective

He set a sales target of ₹1000000 in the current year with an 8% increase every year. - Objective.

Objectives are very basic to the organisation and they are defined as ends which the management seeks to achieve by its operations. Therefore, an objective simply stated is what you would like to achieve, i.e., the end result of activities.They represent the end point of planning. All other managerial activities are also directed towards achieving these objectives. They are usually set by top management of the organisation and focus on broad, general issues. They define the future state of affairs which the organisation strives to realise. They serve as a guide for overall business planning. Different departments or units in the organisation may have their own objectives.