Business objectives have the potential to conflict.
Conflict 1: Sales growth vs. Profitability
To achieve higher sales through cutting prices, the business will reduce short-term profits causing profitability to decrease.
Conflict 2: Short-term earnings vs. Long-term investments
Businesses may decide to retain a big portion of their profits to invest heavily in inventing new products, opening more shops, improving equipment or training workers. Higher retained profits will result in less earnings in the short-term for the owners.
Conflict 3: Corporate benefits vs. Individual gains
To achieve an individual sales target, a salesperson may ‘convince’ a customer to buy inappropriate product which will result in loss of brand reputation for the business.
Conflict 4: Employees vs. Owners
Employees may demand better payments and improvement in working conditions which may subsequently reduce profits for shareholders (owners).
In the pursuit of commercial success, managers must base their strategy on achieving the organizational objectives nevertheless; keep their minds on the objective despite potential conflicts.
