question_answer

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 If nearby villages as very few job opportunities were available in that area. The company also decided to open schools and creches for the children of its employees.

(i) Identify and explain the objectives of management discussed above.

(ii) State any two values which the company wanted to communicate to the society.

Answer:

(i) It is related with the social objective of management. It deals with the commitment of an organisation towards society. Such objectives may relate with producing eco-friendly products, providing employment to the weaker sections of the society, etc. By covering the costs and risks, the company has also achieved the organisational objectives. This objective is related with three aspects: [a] Survival Ensure the continuity of business operations. [b] Profit Earn a reasonable profit, which covers the costs and risks of the business. [c] Growth It ensures the success of business in the long-run. (ii) Firstly, by manufacturing solar lanterns, company gives due value to the needs of the rural people, as they will be able to enjoy electricity in their respective areas. Secondly, by giving employment, they will raise the standard of living of rural people.