PROFIT MAKING IS THE PRIMARY GOAL OF

ANY BUSINESS ORGANISATION:

A business may be defined as an institution organized and operated to provide
goods and services to the society. L.R.Dickson has defined business as a form of activity
pursued primarily with the objective of earning profit for the benefit of those or whose
behalf the activity is conducted.
Therefore we can say earning profit is the primary goal of any organization.
The owner(s) must get adequate return on the capital invested and the risk
undertaken by him or them in the form of profit or dividend. The employees must be
adequately compensated thorough fair wages or salaries, allowances, bonus and other
welfare facilities. So that they devote their heart and soul in organisation’s work and
work in the spirit of doing it not as hired employees but as if they are doing their own
work. Customers are the patrons of the business enterprise and their satisfaction must be
uppermost in the mind of the businessman. The “customer is the foundation of a business
and keeps it in existence”. Earning of sufficient profits is necessary not only to provide
adequate rewards to the owners and employees but also to provide for innovation and
growth and dissatisfaction. The most important and remarkable benefits to the society
thorough innovation and growth are in the form of better products at lower rates and
increase in employment opportunities.
Without a profit motive no business organization can survive and grow. Managing
without a concept of profit leads to ineffective managers, large pensions that cannot be
funded, unproductive workers and large deficits. There is no such things as a free lunch,
someone has to pay the farmer to raise the food and someone to process it. Therefore a
profit incentive is needed for the long term success of an organization and it is the
primary goal of any organization.
With relation to this we can analyze the vision statement of SAJ Industries Ltd. It
says “SAJ was created in 2000 with the large vision of becoming a true food company.
Currently we are in the business of producing a range of biscuits under the umbrella of
“BISKFARM” having our head office in kolkata, WB, India.
Looking ahead we would produce and sell a whole range of other bakery and
allied food products.
This remains our vision commitment.”
Analyzing the above vision statement we can say that their main aim is to grow
and capture a large share in the bakery market. To achieve their aim they need to have
sufficient profits. Therefore their ultimate aim is to earn profits. This is true for any
business organization.
Lets take another example Hindustan Unilever. Their vision statement says
“A clear direction
The four pillars of our vision set out the long term direction for the company – where we
want to go and how we are going to get there:

• We work to create a better future every day

 • We help people feel good, look good and get more out of life with brands and
services that are good for them and good for others.
• We will inspire people to take small everyday actions that can add up to a big
difference for the world.
• We will develop new ways of doing business with the aim of doubling the size of
our company while reducing our environmental impact.
We've always believed in the power of our brands to improve the quality of people’s lives
and in doing the right thing. As our business grows, so do our responsibilities. We
recognise that global challenges such as climate change concern us all. Considering the
wider impact of our actions is embedded in our values and is a fundamental part of who
we are.”

If we analyze it carefully we can see what is their main aim. They want to double
their size. They want to reduce their environmental impact, that can only be possible if
they can spend more on their R & D. They want to improve the quality of peoples live by
introducing new brands. To fulfill all their wants they need sufficient profit. Without
profit they will not be able to fulfill any of their wants. Therefore making profit is very
essential for any business organization.
Lets take the example of Samsung Electronics.Their vision statement is as
follows:

Vision 2020

As stated in its new motto, Samsung Electronics' vision for the new decade is, "Inspire
the World, Create the Future."

This new vision reflects Samsung Electronics’ commitment to inspiring its communities
by leveraging Samsung's three key strengths: “New Technology,” “Innovative Products,”
and “Creative Solutions.” -- and to promoting new value for Samsung's core networks --
Industry, Partners, and Employees. Through these efforts, Samsung hopes to contribute to
a better world and a richer experience for all.
As part of this vision, Samsung has mapped out a specific plan of reaching $400 billion
in revenue and becoming one of the world’s top five brands by 2020. To this end,
Samsung has also established three strategic approaches in its management: “Creativity,”
“Partnership,” and “Talent.”

Samsung is excited about the future. As we build on our previous accomplishments, we

look forward to exploring new territories, including health, medicine, and biotechnology.
Samsung is committed to being a creative leader in new markets and becoming a truly
No. 1 business going forward.

In their vision statement they are very clear about their aim. They have targeted to
achieve a profit of 400 billion by the year 2020. They also want to be one of the top five
Brands of the world. Their vision statement is showing how much profit is important to
them. In their vision statement they also included their future brands, their expansion
areas in which they want to expand their business such as health, medicine,
biotechnology etc. For expanding its business and to introduce new products any business
organization require a very strong R & D section and to support that they need a very
large amount of Profit.
So it is very clear that earning profit is very important for any business
organization. So that’s why profit making should be the primary goal for any business
organization.