Goals and objectives of trading as a professional activity

2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16

The main goals and objectives of trade are related to the functional orientation towards the market nature of the implementation of activities. This is within the competence of all commercial business entities that have a free choice of partners, independence, full financial independence, material and moral responsibility for all commercial activities. Wholesale and retail trade has its own store structure, distribution network and business features.

Trading functions

In today's market conditions, it is possible to use internal reserves in the development of economic activity at trade enterprises. Efficiently organized work on such business entities creates favorable conditions for meeting consumer needs, contributes to the growth of the turnover of goods and, accordingly, the amount of profit. Therefore, we can distinguish the following goals, objectives, functions of trade:

• state analysisoperating markets and consumer requests to assess the situation in the trade sector;
• establishing long-term and reliable partnerships with manufacturers of goods;
• formation of reserve funds in order to provide finance for commodity supply processes;
• use of various methods in the process of interaction of a trading entity with both manufacturers and intermediaries.

Wholesale

When acting as an intermediary between consumers and producers, the goals and objectives of trade for the active movement and accumulation of finished products are determined both in space and in time.

The wholesale trade network with the definition of the structure and direction of commodity flows with the transformation of the production range into goods should act as a kind of conductor of the mass of commodities when it enters the market. Wholesale trade is peculiar:

• acquisition of a significant quantity of goods directly from manufacturers;
• growth in the number of intermediate links before the finished product reaches the end consumer;
• adaptation of goods in assortment to the needs of final and intermediate consumers;
• implementation of a policy of timely quality improvement and product range renewal;
• availability of capital in the required amount to conduct trading activities;
• anticipating the occurrence of risk in the circulation of goods.

Thus, retailers and manufacturerssufficient grounds for using the services of a wholesale structure.

Wholesale trade: goals and objectives

Briefly, the tasks of such enterprises are considered to be:

• analysis of the target market with an assessment of the needs of the buyer;
• strengthen logistics base;
• maintaining commodity flows with distribution channels between consumer demand and supply of goods;
• formation of stocks of commodity values and maneuvering them with a focus on the situation on the market;
• marketing services and supplies;
• manifestation of efficiency and competence in entrepreneurial activity.

Wholesale trade classification

The goals and objectives of the wholesale network trade directly depend on the following main classification features: form of ownership, territorial service area and purpose.

The most common form of ownership of such business entities is private. Representatives are joint-stock companies and business partnerships.

Other forms of ownership include: municipal, state, mixed and consumer cooperation.

Purpose of trade enterprises

The activities of such organizations are determined by their functions and purpose. In doing so, it must be taken into accountinfluence of the territorial factor.

According to their purpose, wholesalers are divided into initial bases, trade-purchasing and trade-supply enterprises.

When a wholesale enterprise is located in the sphere of commodity production, it is considered the initial base. The goals and objectives of this type of trade are to bring goods from producers to consumers. They carry out the purchase of products from manufacturers of goods, it is sorted and completed in shipping lots in warehouses. The next step is sending the goods to both wholesale and retail business entities.

Classification by trade profile

The goals and objectives of trade as a professional activity depend on the range of products sold. Thus, wholesale trade enterprises are of a highly specialized and specialized commodity-trade profile, as well as universal and combined economic entities.

Retail

The goals and objectives of retailers are not much different from wholesalers. So, the main goal of such enterprises is to bring products to the end consumer, which is possible only with the effective organization of customer service.

The process of commodity circulation with bringing the finished product to the direct consumer is completed precisely in the retail network of the trade sector. It is this area that constitutes the material and technical base of all trade and should be a set of representatives of trading business entities.

In today's market conditions, the structure of retailers has undergone some changes. Today, these enterprises have significant differences from each other both in terms of quality and quantity, which determines their general classification.

Thus, the retail network is classified by types, business entities, product range, retail structure, concentration and location of stores.

Goals and objectives of trading

The technology of any activity that a business entity begins to carry out implies the setting of real goals and objectives. Further, the enterprise must achieve and fulfill them through the organization, followed by providing itself with labor and material resources. Achieving these goals is possible only with the use of such an effective mechanism as planning, which provides for the formation of a team of employees with the ability to implement them.

The head of the enterprise must have a good understanding of both formal and informal ties that exist between organizational units of various levels. At the same time, each link must be staffed with labor resources so as to contribute to the success of the entire enterprise.

The leader must know the essence of the organization of all processes in the enterprise and be able to effectively use this knowledge in their own activities. The study of labor processes and the organizational structure of a business entity allowsthe boss to better understand the connections that exist within the enterprise.

The correct setting of tasks and goals is a necessary condition for effective work. For a clear understanding of the employees of the tasks assigned to them, management needs to determine the final goals of the company. Only then can you start planning.