1.5.3 business objectives

Question 1

Other 6 objectives

Answer 1

• sales maximisation
• market share
• cost efficiency
• employee welfare
• customer satisfaction
• social objectives

Question 2

Sales maximisation

Answer 2

an attempt to sell as much as possible in a given time period

Question 3

2 benefit of having sales maximisation as an objective

Answer 3

More sales -> More sales revenue -> More profits

• also can benefit from EOS from higher output

Question 4

Market share

Answer 4

The proportion of a market that a particular business holds

Question 5

Benefits of increasing market share -2

Answer 5

• Can dominate the market if have larger market share e.g i means you can influence things like prices (power over customers)
• larger market share means that output levels will be higher -> can achieve EOS/lower costs