Question
The economic objective is considered overriding for profit-making organizations because it directly relates to the primary goal of these entities, which is to generate profits. This objective guides all strategic decisions and actions within the organization, ensuring that they contribute to profitability. It's the measure of the organization's success and sustainability. While other objectives like customer satisfaction, service excellence, etc., are important, they are means to achieve the economic objective, not the end goal.
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Many mission and vision statements are often mistakenly portrayed as the ultimate objective to be achieved, for example, satisfied customers, service excellence, best-in-field, market leader, low-cost provider. These are, of course, critical outcomes and are highly desired by all organizations, but for profit-making organizations, the overriding objective must be economic, the experts say.
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