Alternative aims of firms

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What are some key objectives of firms?
1, high profit, 2.maximise sales, 3.increase market share, 4.expand, 5.keep costs down, 6.satisficing, 7.low staff turnover, 8.innovate/improve, 9.conform to regualtions, 10. customer satisfaction, 11.brand recognition, 12.CSR
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What is CSR
Corporste social responsibilty
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If a firms main objective is CSR not profit- it is called?
Social enterprise
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Why would a firm sales maximise before profit
to get customers through sales as this is more important than profit to establish a customer base
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Satisficing
Arises when large separation between workers and owners in big firms, Managers run business but don't keep any of the profit therfore they don't care about the business- this decreases productivity
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How to avoid satisficing
to avoid this, could give out company shares, profit sharing and bonuses
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Sales Maximaisation
Firms often increase market share even if it means less profit
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Why sales maximise?
1. increase market share, increase their monopoly powe, this enables them to put up prices in the LR. 2. Managers prefer working for bigger companies as tends to lead to higher salaries. 3.increasing market share may force rivals out of business
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Social/Enivronmental Concerns
May actually be a good marketing strategy to choose products which don't harm enivironment or animals eg the body shop
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ON a graph- revenue maximisation point is where
MR=0
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ON a graph Marginal cost pricing is
where P=MC
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ON a graph Sales Maximisation is
is max sales a firm can make whilst making a normal profit (AR=AC)
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Examples of CSR
Ben and Jerry's- fairtrade, Starbucks- sustainably grown coffee, Tom's shoes- buy a pair and we donate a pair
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Examples of social enterprise
The women's Bean project-eliminate poverty and unemployment by providing training, Eden project-environmental charity giving people jobs
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Card 2

Front

What is CSR

Back

Corporste social responsibilty

Card 3

Front

If a firms main objective is CSR not profit- it is called?

Back

Preview of the front of card 3

Card 4

Front

Why would a firm sales maximise before profit

Back

Preview of the front of card 4

Card 5

Front

Satisficing

Back

Preview of the front of card 5
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