objectives of firms

main business objs

prof max

revenue max

sales max

survival

newer smaller firms may prioritise simply surviving in the market (ST obj) eg) in the GFC in 2008 when consumer spending plummeted most firms would have had survival as their main obj

growth

to increase the size of their firms, take adv of EoS

firms can grow through merging or expanding product range + partcipate in R&D

increasing market share

this helps increase their chance of surving in the market

eg) Amazon wanted to increase market share in e-book market so tried to sell as many kindles, ran at a loss in the sr but gained customer loyalty and now leaders

quality

increase competitiveness by improving quality of g/s (customer service or actual quality of good) through innovation

sales max

firms aim to sell as much of their goods as possible w/o making a loss

amazon with kindles gained market share and deter competitors

sales max revenue

where each extra unit sold generate no extra revenue mr = 0

other

• environmental

• ethical

• welfare of workers

• societal