Analyzing the Purpose of Business: A Comprehensive Report

This report delves into the fundamental purpose of a business, highlighting the provision of goods and services to customers in exchange for value, generating profit, and reinvesting in business operations. It emphasizes actions such as acquisition and perpetuation, as well as indirect actions like upgrading equipment and legal protection. The report also addresses corporate social responsibility, ethical business practices, and the importance of considering social, economic, and environmental impacts. It further discusses the roles of proprietors and employees in achieving organizational objectives and generating profits for business expansion. The ultimate purpose of business is identified as customer satisfaction, achieved through marketing and innovation, which serve as entrepreneurial functions to assess the alignment of products with customer needs. The report references sources on managerial responsibility and business ethics to support its analysis.

What is purpose of business

Table of Contents
MAIN BODY...................................................................................................................................1
Purpose of business.....................................................................................................................1
REFERENCE...................................................................................................................................2

MAIN BODY
Purpose of business
Purpose of every business is to provide goods and services to customer by offering value
and in return customer's will pay for that value either in cash or cash equivalent. The return they
generate by providing goods and service will invest back for the operation of business and for
needs of proprietor of business.(What is purpose of business,2018) Excess money after investing
result in profit margin for the company. Action which is required in business are acquisition,
perpetuation, to expand business according to customer's expectation. Indirect action of the
business includes upgrading equipment, legal protection, continuous improvement and so on.
Other purpose of doing business is to do corporate social responsibility to conduct business in
ethical manner. To maintain social responsibility, it means to consider social, economic and
environment impact and also to consider human rights in business.
Direct actions are generally used in solo business firms by which resources will be
generated and indirect action applied to improve overall performance and for the satisfaction.
Proprietor takes the responsibility to run the business and employees are appointed by them for
the evaluation of work on paid basis but this all to satisfy customers. Employees in business
evaluate direct actions and work to achieve organisational objectives. Another purpose of doing
business is to generate profits by which proprietor able to expand their business growth and
individual needs.((Hsieh and et.al., 2015.)) Overall purpose of doing business is to satisfy
customer of the society and this will only be done by applying two factors that is marketing and
innovation which consider to be an entrepreneurial function and to measure whether products are
meeting customer needs is the purpose of business.
1

REFERENCE
Books and Journals
Hsieh and et.al., 2015. Managerial Responsibility and the Purpose of Business: Doing One’s Job
Well. Ethical Innovation in Business and the Economy: Studies in Transatlantic Business Ethics.
pp.95-118.
Online
What is purpose of business.2018.[ONLINE]. Available through
<https://www.futurelab.net/blog/2014/07/what-purpose-business>
2