XYZ Power Ltd set-up a factory for manufacturing solar lanterns in a remote village as there was no reliable supply of electricity in rural areas.
The revenue earned by the company was sufficient to cover the costs and the risks. The demand of lanterns was increasing day-by-day, so the company decided to increase production to generate higher sales. For this, they decided to employ people from the nearby villages as very few job opportunities were available in that area. The company also decided to open schools and cretches for the children of its employees.
(i) Identify and explain the objective of management discussed above.
(ii) State any two values which the company wanted to
communicate to the society.
(i) It is related with the organisational and social objective of management.
(a) Organisational objectives By covering the costs and risks, the company has also achieved the organisational objectives. These objectives are:
(i) Survival Ensure the continuity of business operations.
(ii) Profit Earn a reasonable profit, which covers the costs and risks of the business.
(iii) Growth Business ensures the success and get flourished in the long-run.
(b) Social objectives It deals with the commitment of an organisation towards society. Such objectives may relate with producing eco-friendly products, providing employment to the weaker section of the society, etc.
(ii) Values communicated to the society are:
(a) Growth of employment
(b) Conservation of environment