Business Studies Collins Revision Guide. - StudyGuide.PK

OBJECTIVES AND GROWTH (2)●●After the early years, a business may wish to expand. This expansioncan be by increasing either the range of products or the number oflocations. This will hopefully lead to maximising sales andmaximising profit. Maximising means making the most of something.Sole traders may have different objectives and may be moreinterested in satisficing. Satisficing means reaching a certain levelor target but not necessarily making the most of anything. Theobjectives may be to do with lifestyle rather than making as muchprofit as possible.Other stakeholders’ objectives●●●●●Managers may have the same objectives as the owners, especially ifthey are rewarded for achieving profit. If they are not directlyrewarded then they may want to increase their own status.Suppliers are likely to want to have repeat orders so they want thebusiness to be reliable so it can pay their bills when they are due.Employees will want reasonable pay and good, safe workingconditions. They will want the business to survive because theywant to keep their jobs.Creditors will want to be paid the money that is owed to them.Customers will want a good product and value for money. They will alsowant the business to survive – they want the business to be reliable sothat they can have after-sales service should anything go wrong.Conflicts in objectivesEmployees want more pay.Owners want to reduce costs.Customers want low prices.Owners want more profits.Suppliers want to be paid on time. Owners want to delay payment.Customers want a high quality product. Owners want to reduce costs.10