Financial manager of companies have objectives they must achieved. Earlier, we look at their financial objectives.
We listed profit maximisation, profitability maximisation, growth and others has part of their financial objectives. In this article, we look at the non financial objectives of a company.
They are discussed below:
(1) Market share
Companies seek for large market share. They want to out shine their competitors. Therefore various strategies are put in place to ensure they have large market share.
For example, the number of users of Internet is estimated to be over 3 billions. This is the Internet market. Therefore, various Internet business will sick to control a larger share of the market.
Recently, Facebook Inc’s published that they have over 1.5 billion users in there main apps and over 1billion users in there messenger apps. This makes Facebook to have a larger share in the social media ecommerce. A percentage of more than 50% of the market.
(2) Growth in Turnover
Many companies want to have high revenue from sales of there product or services they render.
Recently for example, Unilever Plc reports a 12% increase in revenue in the first half of 2016 when compared with the corresponding periods in 2015.
(3) Market Development
This is also an important non financial objectives of a business. And financial managers want to ensure that their business’ product can enter a new market. This objective is long term in nature.
(4) Technical Improvement
Here, companies wants to acquire current technology so as to be cost efficient and effective. Also, companies buy latest technology so that they can compete effectively with their competitors.
Financial managers ensures that their companies have the right structure to encourage delegation of authority, adequate motivation and good participation.
(6) Corporate Social Responsibility
Financial managers also ensure that their organisations meet certain social responsibility. Most companies include this responsibility in their annual report.
Some social responsibilities that companies indulge in are reducing poverty, providing vaccines for certain illness like Ebola, support for women entrepreneurs, giving donations to approved charity organisations so that they can be exempted from certain amount of tax and so on.