This article looks at how private business organizations decide on their business objectives. The most common business objectives for businesses in the private sector are concerned with:
1. Survival.
2. Growth.
6. Maximizing short-term sales revenue.
7. Maximizing shareholder value.
8. Corporate Social Responsibility (CSR).
Maximizing short-term sales revenue
The owners favor sales revenue maximization because it encourages productivity – managers and workers to work harder at getting sales. One of the easiest ways to get employees to put more effort into making sales is by linking salaries to the sales revenue targets as it puts pressure on everyone to succeed.
This could benefit greatly managers and staff when salaries and bonuses are dependent on sales revenue levels. Usually sales managers and sales staff are examples of workers paid according to the amount of sales revenue which they generate for their company.
However, if increased sales are achieved by reducing prices, the actual profits of the business might fall.
Examples of the maximizing long-term sales revenue objective
1. Increase total sales of VR glasses in Beijing and Shanghai by 20% respectively in the next Q2 of 2021.
2. Sell out all of the inventory in retails shops in Paris by the end of December by implementing direct selling and offering price reductions.
