Question

ABC handlooms Ltd. Set up a factory for manufacturing jute bags in a remote village as there was no raw materials available. The revenue earned by the company was sufficient to cover the costs and the risks. The demand of bags 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 crèches for the children of its employees
(a) Identify and explain the objectives of management discussed above.
(b) State any two values which the company wanted to communicate to the society.

Answer 1

(a) The Company is fulfilling the organizational and social objectives of management. Organisational objectives include survival, profit and growth.
1. In order to survive, ABC handlooms Ltd. earns enough revenues.
2. Company’s profits are sufficient to the cover the cost and the risks.
3. Since demand for bags was increasing day by day and so the company decided to increase production to generate higher sales, it implies that the company exploits fully its growth potential. Social objectives involve the creation of benefits for the society.
‘The company decided to employ people from the nearby villages as very few job opportunities were available in that area. It also decided to open schools and crèches for the children of its employees’

(b) Values:
1. Providing employment opportunities in rural areas
2. Concern for the environment
3. Socially responsible behaviour
4. Community development by opening schools and crèches for children