For Grade 8A
Discuss whether profit is always the only main objective for any business.
(Please check: Period October 15th to 20th)
Please write your comment on this changed question.
November 4th to November 11th, 2013
Write here your answer in 500 Words.
Organization is divided into two types. The first is an organization that aims to make a profit, for example, companies that sell goods and services in the market. An organization such as these is the non-profit organization. The second is that not prioritize profit organization. They do not recognize profit when running a business, brand recognizes surplus or deficit of income and the expenditure. Income that they can come from donations or fees from members. Example from a non-profit organization is a church, mosque, Hindus or Buddhist temple, and a sports club.
ReplyDeleteThere is also a private business sector and the public sector. Private sector businesses that put profit are in operation, while the public sector is a business that promotes public service. because the state-owned public sector is not concerned with how the car get much profit they only think to serve the community and provide facilities or provide what the needs of the community. If the public sector at a disadvantage, then they will be subsidized by the state.
Not all profit organization prioritizes profit. There were some consider treating employees well be a good bait to achieve its targets. So the companies gave the facility a comfortable and in a good neighborhood, give bonuses, often hold family events with the employees. In addition there are companies that are more concerned with the activities of a social nature, to create a good public image with hope if it has a good public image gain income or sales that much more because their product pleasing consumer.
For some companies until there is a fraudulent act only to make a profit. Among other fraudulent acts is someone taking the project, the plan to imitate the company of others, trying to thwart the success of others, even to falsify its financial statements. Sometimes the management commits fraudulent acts to satisfy the desires of the heart and director. Board of the board of directors is the ones who appointed and has the power to take decisions in the company, management is usually suppressed by a board director to produce or achieve sales targets.
Companies should not always put profit as their primary objective. This is because many factors that actually directly proportional to sales or profit of the company do not have to be cruel only profit company and be stingy in issuing corporate expense. There are many companies that reduce cost as much so that the company profit could increase. Actually this statement is not 100% wrong or not 100% correct. The point is the company can cut costs by increasing the use of raw materials efficiency of a company. But on the other hand companies can reduce the cost of greater loss of losing customers, sales and ultimately make the company profit tax decrease.
So in conclusion, not all company always prioritize profit, they depend on the type of organization (profit and non-profit organization), depending from the owner. If the owner of the private sector so they will prioritize profit private sector, but if they are, they will put on a public servant
WINSON 8A
Profit and profitability are absolute requirements. That’s why even non-profit corporations must strive mightily for profitability. However, this does not mean that profit is the basic purpose of a business. Profitability really is an essential ingredient by itself which might be better spoken of in terms of an optimal, rather than a maximum size. In support of this thesis, Drucker noted that the primary test of any business is not the maximization of profit, but the achievement of sufficient profit to allow for the risks of the financial activity of the business, and thus to avoid catastrophic loss leading to failure. And we might add, achieve the success which would benefit both the business and society. So profit is necessary, but the purpose of business must not only aim for profit.
ReplyDeleteWhy is profit so necessary? Because profit is like oxygen for the human body. Without oxygen, the body cannot survive. Oxygen insures that the body lives, survives, and grows. Without it, the body dies. The same is true of profit for a “business” whether incorporated as for profit or non-profit under the law. Oxygen supplies the body with needed energy. According to Drucker, profit supplies the business with energy by supporting two basic functions: marketing and innovation. Only a business action can create a customer, and that means innovation, advertising, salesmanship, strategy, service, you name it, and these business actions cost money which come from the difference between buying low and selling high.
Some months ago a corporate CEO was attacked for the “unconscionable profits” made by his company. He pointed out that 90 percent of the so called “unconscionable profits” were actually re-invested in the corporation in research and development and marketing. Assuming the accuracy of his estimates Drucker would have probably agreed with the response of this CEO.
It is the right amount of oxygen that the body needs. Too much oxygen can cause damage to cell membranes, the collapse of the alveoli in the lungs, retinal detachment, and seizures. Too much profit, that is profit maximization without consideration of other elements in the business’s equation, like too much oxygen, can cause problems just as too little profit. If the focus is solely on profit maximization, the customer can be ignored or given secondary consideration. This can lead to poor management decisions resulting in cutting corners on safety, service, or product performance. We have seen this recently in many industries, including pharmaceutical, aviation, and automotive. In truth these bad decisions due to a profit maximization focus can and do occur in all industries.
If profit maximization drives the company purpose, it can allow competition with a different focus to win markets by providing greater value or charging less. Profit maximization can cause organizational toxicity in the same way that oxygen toxicity can damage the body.
So we can conclude that profitability is different with profit maximization, and that with profitability firms can do research, satisfy customers, expand, etc while getting enough profits, but profit maximization can lead to the firm not caring about customer satisfaction, etc.
Ivan Alexander 8A
For private sector business the main objective is profit, for public sector business the main objectives is to satisfy people’s needs and wants. Organzation is divided into 2 , profit organization and non profit organization. That means profit organization focus to make profit as much as possible, non profit organization is an organization that not focusing in making profit. They never recognise profit if income is bigger than expense they call it as surplus in income and expenditure, if expense is bigger than income they call it as deficit in income and expenditure.
ReplyDeleteFor company that only focus in making profit, they will reduce expense as much as they could , they will use the raw materials efficiently, pay labour efficiently, reduce the use of electricity, water, and other factory overhead. This action is applied to reduce expense , so that the profit will increase but , actually , press big cost it doesnt increase the profit. This is caused by focusing on other things actually can cause profit of business increase. Some business more focus in employee, they care about the satisfaction of the employee, needs of employee for working enviroment, facility that is needed by employee to work better. By care about employment, the business receive royalty from employee, with employee’s royalty, employee will work seriously to develop and expand the compnay so the company automatically will increase the sales and the profit.
Some other company focus in consumer satisfaction. They think if consumen is satisified with their product and services, consumer will come back again but not alone, they will invite their family to try the product and services, with the chain of this situation, the costumer of the company will increase day by day. Increase in consumer means increase in sales and profit.
Some company focus in social activity.they will focus to receive public trustworthy from people. By receive trustworthy from people, company also receive the good image and good brain in people’s opinion. Social activity also became a good promotion for the company so more people know about the company, the company’s product or services, so when people want to buy a goods that is produced by the company, people directly remember our brand and our brand will be well known, these things make an increase in sales and an increase in profit.
But, there are some company that still using the old thinking about the main goal/objectives of the companies are making profit. However , they will increase the profit, usually they use the tricky ways for making profit, like pay a very low wages, buy the cheapest raw materials, lie to consumer. Actually as long as their ways is not fraud and rude the company’s to get profit is good and correct, management needs to find a creative way to increase profit by making a new inovation, increase the technology, develop the new product.
IN CONCLUSION, there are some companies try to make an increase in profit , there are also some company that is using another way by focus on small things to increase the sales, efficientcy and effective in production and marketing that at the end increase the profit
Profit is arguably the most important objective for every business. What is actually the purpose of a standard business? To make profit. But some organizations do not seek income. Some like the church, Locks of Love, charity, and many others do not seek profit. They pay their expenses by charity from volunteers, donations, etc.
ReplyDeleteWhile profit maximization expresses the general nature of the objective of firms it is not profit per se that firms should try to maximize. Instead firms want to maximize the value of their equity holdings. This equity value is equal to the expected (discounted) present value of the net returns from those holdings. Returns is used here rather than profit because of some technicalities which will dealt with later. The most important clarification required is the matter of equity based upon long term considerations versus the short term concept of profit.
If the firm is operating in a steady state condition such that all conditions are constant over time then, and only then, will the maximization of annual returns be equivalent to the maximization of the present value of all net returns.
The production of goods and services in our economy today takes place within organisations, whether in the centrally planned economy or free market economy. Any firm within these societies all have the same tendencies to acquire a successful business. Attaining this succession through mission statements, goals and objectives is simultaneous through all businesses.
Changes in these objectives can have forcible effects on the decisions that firms take day-to-day regarding pricing, output levels, the market and capital investment. Depending on the size of the corporation, objectives will evolve to meet changing economic conditions. The standard neo-classical assumption is that a business strives to maximize profits. Profit maximization is the process by which a firm determines the price and output level that returns the greatest profit, where marginal cost is equal to the marginal revenue.
The theory of a firm tends to make this assumption because despite the growing importance for market survival and frequent calls for corporate social responsibility, creating a profit appears to be the most significant single objective of organisations in our market economy.
Some firms have objectives like customer service goals are to develop a perception that your company is easy to do business with or to improve your response time to customer complaints. Objectives to help meet these goals could be increasing your customer service staff from one to three workers by the end of the year or implementing a policy where customers are guaranteed to receive a return phone call before the end of the business day.
Another goal could be to become more efficient in your business operation as a way to increase productivity. If you distribute a product, you might consider implementing a new shipping procedure that improves your delivery time from four days to two. Or perhaps your goal is to grow your business operation. If you own a franchise unit, for example, your objective might be to open three more units within a five-year period. If you operate a retail store, your objective might be to increase your selling space by 25 percent by completing an addition to your building within a year.
Jonathan 8A
First of all, profit is the money from our revenue minus with its cost. Profit is always the only main objective for any business because the most common business objective, especially for private sector organization is profit maximisation. With having a business, they will earn profit, which can be used to buy goods and services, to satisfy their needs and wants. Business means economic activities to earn profit, that’s why the aim and purpose of most of the business is to make profit. But, there’s also some organization that have other purposes.
ReplyDeleteProfit can be used to satisfy someone’s needs and wants. Of course profit is the only objective for any business because profit is the one that motivates entrepreneur to set up and run business organization. Pofit also defined as total revenue minus total cost. But, business can get loss if their total cost is greater than the total revenue. Profit is very important during the run of a business because profit can cover the cost of those business organization and can be used to buy another material or resources that we need, to produce our product, also can be used to buy another assets for our business. But, we will also get our own profit that we used to consume goods to fulfill our needs and wants. There are several business objectives, such as, increase profit or profit maximisation, business expansion, increase sales, market control, welfare, and satisfaction maximisation. But the main purposes or the most important aim of a business organisation is profit maximisation or increase profit as much as they can, because, with profit, they can do the other objective. For example, if they don’t have enough money or profit, they cannot expand their business, they also cannot increase their sales if they don’t have enough money to buy the raw materials, to buy the resources to make it.
Against the statement above, we can see that there are many advantages of making profit, which can make them become the main purpose of a business. But, beside that, there are also disadvantge of earning more profit, which is, the business can be asked to pay more taxes. There are several ways to increase profit, which is lower the cost of sales, by lower the wages and limit the cost to buy the raw materials, second, higher the productivity, which can make them efficient capability to produce, minimising wastes also can help to increase profit, higher selling price also can make them to sell with higher price, which can produce higher income with higher profit, higher the production also can make them increase the profit, higher production means the total number of unit.
In conclusion, profit is always the main objective for some of the business, because it can be used to buy goods and services, to satisfy our needs and wants. But, it is not true if profit is always the main objective for any business, because there are some business organization do not aim to make profit, they have other purposes, for example, charity organization have their aim to help other people, to doing charity, not for make profit. Same thing for sports club and local social, they aim to gather with each other, to have good relationship. And profit is known as toal revenue minus the total cost.
Vienetta christina
8A
Every organizations are created for certain objectives.Profit is the most common and most essential objective of an organization.Profit is the reward for taking risks,it can also be the money you get from revenues after cutting costs.
ReplyDeleteBecause of profit, a lot of organizations are created.Some organizations may only focus in generating profit,especially companies in the private sector, they did a lot of things to gain profit,only some companies have other objectives.Profit is needed because it can increase the price of the companies' share and it can expand the capital of a company.Most people wanted to earn profit because without it, they won't be able to survive.Profit is needed by people and because of that need for profit,people create organizations.With profit,they could also try to grow bigger in size.Most organizations try to earn profit buy cutting their costs and increasing price,eventhough this can decrease the quality of their products, they will still do it for the sake of getting more profit.With profit companies can also try to invest on new projects and make smart ideas come true.It can further increase their companies' size.You can also get more profit if you're more productive.People tried their best to get profit because it can satisfy their basic needs in life and it can be used for a lot of other things.
But organizations may have objectives other than profit.For example companies in the public sector will mostly have other objectives other than profit,and it is to give the people in the country an easier life.Profit can also be considered dangerous for many people because if people get too greedy to earn profit, they could also get disadvantages, this is why most people try to find other objectives other than profit.Most people also has objectives other than profit making.Maybe some of them created the organization for charities, some for their favorite sports club and some for other reasons.There are a lot of objectives other than profit.Sometimes people are too scared to generate profit that they decided to find other objectives.They are scared because profit can be gained buy taking risks, if they won't take risk they won't get profit.Some people would rather not take risk than getting profit.Only some people in this world can have that certain bravery to come out of their comfort zone to search for more opportunities to get more profit.It's also hard to get more greedy because the government would stop you later and if you abuse the nature to get more profit, you might end up being in jail.Profit is dangerous in many ways, we better not gain too much profit, we should just get the amount of profit we need.There are also other good objectives other than profit-making.Most people just focus in getting profit and they are blind to what's really important.If you try to gain more profit by increasing price, your customers could choose other products and you'll lose market share, if you wanted to increase profit by cutting costs, you'll end up lowering your product's quality and less people would want to buy your products.
The conclusion is that profit is essential,you need it to survive,but getting too much profit might be dangerous.There are also objectives other than profit-making.Gaining profit is not the only important objectives in this world.
Jovan Pan
8A
Profits are very important in the business world, especially in a capitalistic society. Profit can be defined as a surplus of revenue that is made after all the resources to create goods or provide servies are utilized. Profits support the running of the business and the livelihood of the business owner. Profits is a feedback mechanism which help producers to determine if they are selling things people want and at the prices they are willing to pay. This information helps investors and business owners make decisions. Profits and losses provides businesses with knowledge of their success for failure, as judged from their consumers.
ReplyDeleteProfitability is a primary goal for all firms. Without profits, the business could not survive in the long run. A good firm’s objective should be to make decisions to increase the value of the firm for the owners, which are the shareholders. Therefore, a firm’s objectives would basically be maximization of shareholders’ wealth, done by profit maximization. Profit maximization is the process of identifying the most efficient manner of obtaining the highest rate of return from a production model. The goal of profit maximization is to achieve the highest profit margins possible. There are several methods of approach used to this pursuit by businesses, such as lowering costs of production, paying attention to the current levels of supply and demand, and the price that can be obtained per unit of item while still attracting the largest volume of consumers. There are two main profit maximization methods used, and they are Marginal Cost-Marginal Revenue Method and Total Cost-Total Revenue Method. Many argues that profitability is the sole objective of businesses. There are some businesses that do have ideological goals, and there are certainly some individuals who run businesses who have ideological goals which they can impose on their business. At times, businesses may intentionally decrease profits for business growth, but their main goal still remains profit. Most firms in the private sector nowadays would be set up just to gain profits, not considering other objectives such as growth, consumer satisfaction, market power, ethical issues, and the environment. Small businesses such as street hawkers will have the objective to make enough profits for survival in the competitive market.
However, it must be stated that it is untrue if all firms only has profitability as its main objective. Firms have various objectives, especially if they have grown bigger in size. Businesses with only profitability as a goal may fail because they tend to have bad management decisions. Profit maximisation itself does not have a clear definition. Consideration has to be given to the range and quality of a firm’s products or services, to the costs of its operations and to environmental influences. Reducing attention to longer-term ‘investments’ such as quality and after-sales service, research and development, sales promotion, management development, satisfaction of staff and their employment conditions may increase profitability in the short term, but is likely to jeopardise future growth and development, and possibly even the ultimate survival of the firm. Searching for one, right objective is not only unproductive, but is certain to harm and misdirect the business enterprise. Other objectives that firms may have include consumer satisfaction, brand recognition, employee happiness and social responsibility. Consumer satisfaction is an important objective most firms have. While consumer satisfaction has a direct link back to sales and profit, it is also linked to brand loyalty and recognition. If consumers are happy buying products from a firm, they will keep coming back and may advertise the product through word-of-mouth. This will be good marketing for a firm without them having to pay for it.
Brand recognition, or brand awareness, is the extent to which a brand is recognised by potential customers, and is correctly associated to a certain product. It is usually expressed as a percentage of the target market. Brand recognition is an essential part in brand development for a brand to stand out in the competitive market. The happiness of employees is an objective that no business owner can ignore. Full-time employees spend at least one-third of their day at work, and most social interactions happen though work. A 2010 study by Daniel Sgroi of the University of Warwick showed that a happy employee will make fewer mistakes and that happy employees are more likely to contribute intangible benefits, such as new product concepts and procedural ideas. The last objective discussed is social responsibility. Creating a socially responsible and community-beneficial business is one of the ways to make your mark on the world. Though it may seem like an empty feel-good moral, societal marketing researchers including Steve Hoeffler and Kevin Lane Keller have found that maintaining a solid objective of community well-being can benefit a business more than almost any other marketing technique.
ReplyDeleteAside from the for-profit companies noted above, there are also non-profit organisations. Their main goal is usually to raise money for charity to donate to the less fortunate, or to give various forms of help. Some non-profit organisations may be a charity or service organization; they may be organized as a not-for-profit corporation or as a trust, a cooperative, or they exist informally. While not-for-profit organizations are permitted to generate surplus revenues, they must be retained by the organization for its self-preservation, expansion, or plans. NPOs have controlling members or boards. Many have paid staff including management, while others employ unpaid volunteers and even executives who work with or without compensation (occasionally nominal). The public sector also provides public goods such as street lighting, roads, defence system free of charge, and merit goods such as health care and education with very low prices. The public sector does not aim to make profits, instead their goal is to give services.
To conclude the points above, profitability remains a primary goal of businesses in the private sector, but it is not the only objective there is. Some organisations are not-for-profit, and the government only wants to provide services, regardless of the profits they earn (which is usually very little or none at all).
Every business organization has many objectives. Business is economic activities to earn profit while organization is a group of person with similar interest or one objective. Most business organization objective is profit, so they want to earn as much profit as possible or it is called by profit maximization, profit means the revenue or income minus the expenses for making the products such as paying workers, buying raw materials and running the electricity cost. There are many ways to increase profit, first, by lowering the cost of production or cost of producing the goods, increase in productivity, minimizing wastes produced when making the goods, increasing the selling price of the product and increase in production. However, as different firm has different objective, there are other objectives or purpose that they might aim at.
ReplyDeleteFirst is business expansion, some people wants to increase their size of business by hiring more labours for labour-intensive business or having more capitals, such as machine for capital-intensive, another is to increase market share. If they have a large-sized business, more customers will be attracted to consume their products because of brand recognition, they are well-known business so customers will trust them which is a benefit for the business itself. Aside from that,other business wants to have a large market control for example: Apple company and Microsoft company, so that they are recognized as strong firms.The advantage a business will get by having market control, is that they can control the supervision or management of the distribution of goods and services, in that way, they may get higher income. Third is welfare, welfare simply means availability of resources and presence of conditions that are required for living. Lastly, it is satisfaction maximization. Satisfaction maximization is to make as large or great as possible the fulfillment that the individual desires.
The poinst againts it is that without having an increase in profit and profit maximization, they will earn low money in total and they will find it hard to continue running the business especially for large firms, they cannot pay their worker’s wages and bills which means that they have higher risk. Then, it will be a disadvantage for financing and investors in the business as it may require certain and different levels of profit to secure the funds for expansion of the firm. The firm needs to gain higher profits for its shareholders because they expect a return on their investments. Also, problems will caused in the cash flow of the business as the cash flow is important, it may be used for reducing debts or business expansion.
As a conclusion, profit maximization is the main objective in a business because by having more profits, it can be used for many options which can be advantage for them.But there are also other objectives that business might have such as business expansion or increase in size, increase in sales or income to the firm, market control, welfare or richness and satisfaction maximization. It all depends on different type of the business.
Felicia Angeline
8A
Each business have different different objectives, most public sector business have an objectives to provide the best services for consumers and the private sector business usually have an objective to earn as much profit as they can. By earning the the profit the business can enlarge their business or buy the new technology where they could decrease the production but they also can increase the production in that way the business can easily earn more profit and also they can increase the selling cost but their quality of product also increase in that way people will get satisfied and consumer would buy the product even if the price is higher than the other companies product. Not all business have the objective to earn profit because they can easily get money from selling shares if they are a public limited company, and the money earn from selling shares can help the business to develop so the demand for the product is increasing per year and also the business need the latest technology that will make consumer to be interested and buy the product for example is samsung company they have sell many product each day and with bbm in android now people are purchasing their smartphones and Samsung also sell their phones with cheap price not like apple company where they sell their product and also earn alot profit. There is a advantages and a disadvantage for a business that have a objectives to earn profit. The advantages are they can earn more by having higher profit, they also can use the money for the business so it can develop more. The disadvantage are some people doesn't have the money to purchase a expansive phone so it maybe hard for apple company to get as many sales as Samsung did.
ReplyDeleteThe conclusion are not all business have the objectives in earning profit some of the business have the objectives to have high sales number and not profit. But if they earn profit it will be beneficial so they can develop the business and can earn more profit and also get more sales of their product.
Robin 8a.
Business is the activity of making, buying or selling goods or providing services in exchange for money. Also organization is divided into two, non profit organization and profit organization. And for profit organization, they work to get much money, for non - profit organization, they do not work for get much money. Profit is the difference between the amount spent in buying, operating or producing something. Also Profit is always the only main objective for any business because they bring more advantages for a business. And also profit is the main objectives of a business. If a person or an organization having a business, they will provide goods and service and also they will earn profit to become their capital to continue their business.
ReplyDeleteProfit is always become the main objectives of a business because first, Its also used for personal use, for a business, they will get their own salary and use their salary for personal use. So, the point is taht profit can be used to satisfy people's needs and wants.
There are some organizations who are created to make much profit, such as Private sector, they do anything to gain much profit, profit is needed by a company to increase the amount of the shares in a company. Many people who wanted or wish to earn much profit for their lives, and also its important for a business organizations to increase the business size.
Third is business expansion, to get much profit, some firm wants to increase the size of the business by adding more amount of workers that are specially a skilled workers. Also more capitals such as machines, etc. And also to increase share. If the firm increase the amount of skilled workers, it may be an advantage for the business or the firm because if they hire more skilled workers, they will produce more and they will produce goods with high quality, and also to make the consumers more interested to buy goods or services in that firm, it is an advantage for the business because skilled workers are having good knowledges and skill to produce new goods and services.
If they do not increase their profit and profit maximisation, for large firms, they will have much liability, especially to their workers, the large firms can't pay their own workers wages and so they have large risk, so it may also be a disadvantage for large firms if they do not focus in gain much profit.
As a conclusion, profit is always the only main objective for any business because profit can be used by people which can be advantages for them. And also there are also many types of objectives besides Profit. Such as : increase in size, increase in sales or revenue, satisfaction maximization, etc.
Celia Pricilla Mesatania 8A
Generally businesses have many different objectives from others, even though many businesses may have objective of having profitability, it may not be the only objective for businesses. Profit is the selling price or income decreased by the cost of production. Businesses have different objectives which may make some business don’t have the objective of profitability. For example, businesses could have objectives for charity or to increase market share because even though they don’t earn profit and they make many sales, they could still increase the market share and earn more finance from earning from the market share. Other businesses could also have the objectives to help or for the charity which other people needs help. Businesses could change their objectives any time they want, so if for example a country is hit by a natural disaster, the business could change their objective of profitability to collect money and help the people who are struck by the natural disaster. Some also don’t have objective of earning profit but they may have objectives to only satisfy consumers, for example businesses that are by or from the government like PLN or the electricity station. They don’t earn profits but they satisfy the needs of people.
ReplyDeleteBy having profit for the business would surely be beneficial for the business because they have extra or more money for the business. By having more profit it means that the business could still run and could expand the business to earn the profit. By having more profit it would make the owner earn more and it may affect the worker to earn an increase on their wages. By having profit they could pay liabilities owing to bank or other companies because they have the finance owned by selling higher price of a product produced rather than the cost of production. They also could have capital expansion and capital creation for the business to produce more or higher quality goods and services. Most businesses have objectives for profitability because of course they want to receive revenues or more earnings than the spending because if they don’t earn profits, the business could grow loss because businesses have unlimited liabilities which they should pay back.
But by having only earning profit as their objective would make them only focus on earning profit but could produces problems or producing bad or unhealthy products for the consumer, for example, if they only think about earning profit, they may litter trash in inappropriate areas like littering in the river and they also might produces many air and water pollution which destroys and harm the environment that are affected by the actions of the business because they only have objectives on earning profit and don’t care of their actions which harms the environment. They also could produce goods that are harmful or not healthy products that could be addictive to consumer which because they only have objectives on earning profit, and doesn’t care on the health of the consumer, for example, cigarette.
There are different types of businesses with different objectives, so profit is not only the main objectives of a business because every business has different aims which could make the objective of the business different with others.
Brian.A
8a
This comment has been removed by the author.
ReplyDeleteProfit is simply the positive gain from a business operation or an investment after subtracting all expenses. Profit can be gross which is the distinct between sales and costs of goods sold. The opposite of profit is loss. Profit is the main business objective and it inspired entrepreneurship’s to run a business. The 3 main business objectives are profit maximation ( increase in profits ), to grow in size, and to increase market share. But therefore, there are non-profit businesses.
ReplyDeleteFor a new business, survival is the most important objective. If it doesn’t survive, it will cause a loss and no profit will be earned. Technology may also change the objective of the business. Like for example if there is a new technology, businesses will change their objective.
There are also some other business objectives such as market power, global power, brand loyalty, brand recognition, customer satisfaction, reputation and image, share price, satisficing, ethical issues, efficiency, personal satisfaction, turnover, social issues, long term survival, and environment.
Like I said before, not all business aims for profit. A non-profit organization is one that, by law, is unable to hold or distribute profits like a “for-profit” organization. It is like for charities, like so people will donate for the poor.
So in conclusion, it is not true that profit is the main objective. Some business is non-profit business like they do it for charities. But it is true that profit is the most common business objective.
Audrey 8A
I can agree that the business main objective is profit but it’s not only profit maximation is the business objective. There’s also another business objective such as charity for example some charity work to visit an orphanage, Sales revenue animation that give additional profit and also increase business revenue, and the last one is self satisfying which means that the business provide satisfaction to the people who works in that business. So the conclusion is profit animation is the business main objective but there’s also other objective that a business want to achieve.
ReplyDeleteI don't think so!!!!
ReplyDeleteNo matter how hard they pretend that their main objective is not to earn the profit but to serve the customer, somewhere down the line business organizations have this motive. Which is when seen by the people/clients/customer, they just stop taking the services and eventually the business gets doomed.
ReplyDeleteRegards,
Robert Green
If more people that write articles really concerned themselves with writing great content like you, more readers would be interested in their writings. Thank you for caring about your content.
ReplyDeleteGrow your Business