1.5.3 Business Objectives

• The aim of most start up businesses is to survive the initial entry into the market and to generate enough cash flow to remain in business

  Effective cash flow management is more important than gaining an income or seeking profit maximisation
• Sales maximisation

  • focus on generating max revenue possible by selling its products/services.
  • Firm should raise prices to achieve revenue maximisation when product is price inelastic in demand.
  • Firm should lower prices to achieve revenue maximisation when their product is price elastic in demand
• Market Share

  • Refers to percentage of total sales in a particular market that a company holds.
  • Business may aim to increase its market share by producing and selling better quality products than its competitors
• Cost efficiency

  • Refers to company's ability to produce & deliver its products at the lowest possible cost.
  • Crucial for companies that operate in highly competitive markets, as low costs enable them to compete with low prices
• Employee Welfare

  • refers to a company's commitment to providing a healthy and safe working environment for its employees
  • A business may aim to promote employee welfare by offering competitive wages, comprehensive benefits packages and promoting a healthy work-life balance
• Customer Satisfaction

  • business may aim to achieve customer satisfaction by delivering high-quality products, providing excellent customer service and offering attractive pricing.
• Social Objectives

  • refer to a company's commitment to addressing social or environmental issues
  • This objective is increasingly important for businesses that aim to operate sustainably and build a positive reputation