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Business Goals - Coggle Diagram
Business Goals
Profits
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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
Market share
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Calculated by dividing a business’s sales (from that market) by the total sales of all businesses in that market as a %
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Increase through promotion - the methods used by a business to inform, persuade and remind a market about its products
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Environmental
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
Growth
Internal growth: employing more people, increasing sales, introducing innovative products, purchasing new equipment
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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.
Share price
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.
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