Business Goals
Profits
Share price
Social
Environmental
Growth
Total revenue - total expenses
Received by business owner
Profit maximisation: when there is a maximum difference between the total revenue (that is, the number of sales made multiplied by the price) coming into the business and total costs being paid out
Strategy: to increase sales by lowering prices and establishing a well-constructed marketing campaign
Case study: A board of directors announces that the company’s profits are forecast at 23% over the next 12 months and the dividend will rise by 28 cents per share.
Market share
The business’s share of the total industry sales for a particular product
Calculated by dividing a business’s sales (from that market) by the total sales of all businesses in that market as a %
Case study: Google as a default search engin on many internet browsers --> large market share
Increase through promotion - the methods used by a business to inform, persuade and remind a market about its products
Public companies can increase float thorugh issuing new shares on ASX.
Internal growth: employing more people, increasing sales, introducing innovative products, purchasing new equipment
External growth: merging with or acquiring other businesses
Case study: Co-founded Atlassian, an enterprise software company currently worth $50 billion, in Sydney in 2002. Their strategy for continued growth has been through mergers and acquisitions.
Case study: Koh was created by two dads with the aim of eliminating the use of toxic chemicals in home cleaning products. The company developed a simple, effective and eco-friendly cleaning system, with reusable spray bottle and cloths.
Business practices aim to reduce the impact on the planet’s health so that future generations are not disadvantaged.
Sustainable development: when the needs of the present population are met without endangering the ability of future generations to meet their own needs
Meet the expectation of shareholders and consumers
Social justice and provision of employment
Case study: 68% of Australian employment is provided by SMEs.