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4 main business objectives - Coggle Diagram
4 main business objectives
Profit
Profit is a financial gain, especially the difference between the amount earned and the amount spent in buying, operating, or producing something.
Companies can increase revenue to improve net profit in three ways: Raise prices: Increasing the price of products or services will increase total sales and eventually net profits. Sell more products: Enticing customers to purchase a higher number of goods or services will lead to a higher net profit.
Growth
Benefits of growth:
increase your resources and stock.
generate more sales and profits.
reach new customers or markets.
put more money back into your business.
influence market price.
reduce external risks
Businesses grow by selling more products, either by selling more to existing customers, or finding new customers.
businesses measure growth by Revenue, Higher profits, higher sales, more customer
Protection of shareholder values
Shareholder value is the value delivered to the equity owners of a corporation due to management's ability to increase sales, earnings, and free cash flow, which leads to an increase in dividends and capital gains for the shareholders.
Ethical Objectives
Business ethics refers to implementing appropriate business policies and practices with regard to arguably controversial subjects.
Advantages and Limitations of ethical business objectives:
Provide a Competitive Advantage in Terms of Customers.
Improve Employee Happiness.
Attract More Investors.
Better for Society.
Limited Ability to Maximise Profit.
Time Consuming to Implement the Practices.