Producer goals

Provide Community Service Goals of the Firm Profit maximisation Maximise sales Growth Top Quality Product Satisficing Provide Employment Provide Community Service Lowest possible Price Be own boss

Profit Maximisation This is the main objective of all firms Profit is the reward for taking a risk Most businesses will want to make as much profit as possible. They will do this by making as much revenue as possible and keeping costs low Profit Maximisation = to make as much profit as possible

Sales Maximisation A new business may have their main goal as Sales Maximisation. Sales Maximistion To make as many sales as possible This is to increase market share and compete against existing businesses

Growth A business may have its main aim as growth. This may be to get to a point where the company is big enough to compete internationally.

Quality A business that has its main goal as quality will strive to have the best product possible and will put this before volume of sales and profit.

Satisficing The main goal for someone who is satisficing is to reach a goal which is usually to stay in business and then achieve other objectives such as enjoying the lifestyle of being in business

Provide a Community Service This is the main goal of non-profit organisations to offer a service to its members, groups or wider community Examples, ambulance services, phone counseling, girl guides

Provide Employment Be a good employer and provide jobs for local families/workers

Be own boss Goal of being a business owner instead of an employee

Lowest possible price Businesses will pride themselves in having more affordable goods.

Goals of producers Goals of producers usually vary according to how long they have been in business E.g. A new business owner may just be looking to cover costs and survive until their business is established and increased its market share A more established business may be focused on profit maximisation Each choice a producer makes will have consequences for the business, the owners and employees as well as the customers and community

Workbooks page 184 and 185 not # 1 or 2