Example of 5 objectives of Businesses

Profit maximization (https://www.ft.com/content/79ed9c7c-2caf-11e8-9b4b-bc4b9f08f381)

  • As Tencent released Tencent game and payment (including we-chat pay), Tencent’s net profit increased by double.
  • Business innovation/business change
  • Very successful in both segments, including we-chat pay and Tencent games.
  • As Tencent is definitely surviving, and has a relatively good brand image, it’s goal now would be to maximize its profit in order to minimize the problem of scarcity. In order to do so, releasing tencent games and wechat pay would allow tencent to gain massive amounts of revenue in order to meet the objective of maximizing profit.

Survival (http://www.nbcnews.com/id/16831126/ns/business-answer_desk/t/how-do-companies-lose-billions-survive/#.W_ZGxJMza2w)

  • Hoping to meet break even as there are losing money since 2006
  • Surviving in the market could lead to revenue maximization someday if the company is operated under right management.
  • Ford’s revenue always is below their cost, therefore never meeting the breakeven point. Which in this case, they may be earning a negative economic profit. In order to survive, Ford is currently trying to minimize cost and gain the greatest amount of revenue possible.

Revenue maximization (https://phys.org/news/2018-08-alibaba-revenue-one-time-expense-profit.html)

  • Alibaba’s net income/revenue have increased by 33 percent.
  • Chinese food delivery helped a lot at an increasing amount of $9.5 billion.
  • Alibaba while maximizing revenue, they will encourage more people to start use services that Alibaba provide such as food delivery. Therefore, as more people start use, Alibaba will then consider about finding the best quantity in order to use limited cost to create maximized revenue.


Increase market share (https://www.cultofmac.com/523037/apples-market-share-increases-mac-shipments-rise-2017/)

  • Apple’s market share increased from 23.5% to 31.8%
  • As Apple’s market share increases, there is a greater chance for Apple to beat other competitors in the same in the same industry and therefore allow Apple to dominate the market, generating more revenue/profit.

CSR (http://www.csrwire.com/press_releases/41570-Hanes-Launches-2018-National-Sock-Drive-to-Help-the-Homeless)

  • Donation of 225,000 pairs of socks to homeless
  • Ethical move
  • Very successful in gaining brand loyalty and brand image
  • Their object of being a CSR company benefit them in other ways such as by gaining brand loyalty, they earn more profit as people gain brand loyalty
  • Instead of having the aim of maximizing profit, spreading the ethical move would be more helpful for them to gain brand loyalty

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