Aims of Businesses

Aims of businesses

Business aims or objectives establish goals that companies wish to achieve during a set period of time, which include sales targets, profits, growth predictions and market shares. The targets set by companies help with planning and allow individuals within organizations to break up their tasks in the most efficient manner to help reach a common end goal.

 

Corporate social responsibility:

Corporate social responsibility (CSR) is a self-regulating business model that helps a company be socially accountable — to itself, its stakeholders, and the public. By practicing corporate social responsibility, companies can be conscious of the kind of impact they are having on all aspects of society including economic, social, and environmental. To engage in CSR means that, in the normal course of business, a company is operating in ways that enhance society and the environment, instead of contributing negatively to it.

McDonald’s:

McDonald’s CSR include:

  • Supporting sustainable beef production by collaborating to develop global principles and criteria, and committing to begin purchasing a portion of beef from verified sustainable sources in 2016
  • Sourcing 100 percent of coffee, palm oil and fish that is verified to support sustainable production
  • Procuring 100 percent of fiber-based packaging from certified or recycled sources
  • Serving 100 percent more fruit, vegetables, low-fat dairy or whole grains in nine of its top markets
  • Increasing in-restaurant recycling to 50 percent and minimizing waste in nine of its top markets
  • Increasing energy efficiency in company-owned restaurants by 20 percent in seven of its top markets

 

Increase market share:

Companies increase market share through innovation, strengthening customer relationships, smart hiring practices, and acquiring competitors. A company’s market share is the percentage it controls of the total market for its products and services. Higher market share puts companies at a competitive advantage. Companies with high market share often receive better prices from suppliers, as their larger order volumes increase their buying power. Also, increased market share and greater production go hand-in-hand, with the latter decreasing a company’s cost to produce an individual unit due to economies of scale.

Tesla:

“With the launch of Model 3, Tesla is growing at a record pace in its home state of California. The automaker increased deliveries by 400% in California last quarter and helped push all-electric vehicle market share to a new record: 4%.”

Tesla says that it delivered 83,775 vehicles worldwide during the last quarter. It makes Tesla the fastest growing brand in the important market. According to IHS Market’s registration data shared in the California New Car Dealer Association quarterly report, Tesla delivered 22,758 vehicles in California during the last quarter of 2018, it is a 399% increase compared to last quarter of 2017. Registrations are up 226.5% year-to-date. The rapid rise is helping overall electric vehicle market share in the state. It has now reached a record 4% of the overall market and it has matched sales of hybrid vehicles.

 

Survive:

Another main objective for businesses is to survive. To survive a usually short term objective, probably for small business just starting out, or when a new firm enters the market or at a time of crisis.

“The growth rate of bike-sharing users is slowing down, said Zha Songcheng, vice president of Hellobike, which claims to be the third largest bike sharing company in China.”

China’s bike-sharing companies have hit a roadblock. The industry boasted close to 60 startups as recently as 18 months ago, according to Yu Xue, an internet research analyst at IDC China. He predicts fewer than 10 will survive the next year. The companies allow customers to unlock a bicycle using only a smartphone, ride it around town, and then leave it at their destination. The model works, but the industry has grown too big and too fast. The proof is scattered across China’s urban sidewalks, where piles of underused bikes have been dumped. Complaints have even prompted authorities to limit the number of bikes in some cities.

 

Profit maximization:

Profit maximization is the short run or long run process by which a firm may determine the price, input, and output levels that lead to the greatest profit. The general rule is that the firm maximizes profit by producing that quantity of output where marginal revenue equals marginal cost. The profit maximization issue can also be approached from the input side. That is, what is the profit maximizing usage of the variable input? To maximize profit the firm should increase usage of the input “up to the point where the input’s marginal revenue product equals its marginal costs”

Tencent:

Tencent is getting its business back on track. The Chinese gaming and social media giant reported net profit of more than 23 billion yuan ($3.4 billion) for the three months ended in September, up 30% and higher than analyst forecasts. The numbers are a big improvement over last quarter’s results, when the gaming and social media giant reported a profit drop for the first time in more than a decade.

Tencent said its strong performance was driven by rapid growth in revenues from digital content, advertising, cloud computing and online payments.

 

Revenue maximization:

Revenue is essentially another word for sales, or how much of the good or service that your business produces is sold to consumers. Revenue does not take into consideration the costs necessary to produce or market your business’s product, so it does not reflect what the owners ultimately receive. A revenue maximization strategy dictates that a business should do whatever is required to sell as much of its product as possible.

RateGain:

“RateGain Technologies, announced that it has been chosen by Bangkok Airways, Asia’s boutique airline based out of Thailand, for their advanced, real-time airfare price intelligence product, AirGain.”

RateGain partners with Bangkok Airways to achieve revenue maximization.

The Bangkok Airway said that use of superior technology in any aspect of the business is a proven necessity. With the rise of digital travelers, there is an ever-growing need for data from multiple data points, in real time, so that ther can optimize their revenue strategy.

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