Business Targets

 Business Aims Essay

Relevance and implication of business aims models regarding Nepalese business. Ans: In much of economic theory, the assumption is that a organization aims to maximise profits. Actually, most businesses which are work for " commercial gain” do have profit maximisation as a crucial objective – since the investors have taken a risk purchasing the business and require a returning (profit) to pay them for their risk. Revenue maximization is definitely the process with which a firm can determine the price and out set level that returns the greatest profit. Inside the context of nepalese businesses, most of the company aim for earnings maximization style. most of the organization are earnings oriented organization try to maximise profit will be the business who also enjoy monopoly market. Nepal lever limited, Nepal phone system are handful of business who have follow profit maximisation style. They tend to improve their profit by increase the selling price of the item rather than elevating the revenue whenver there is increase in cost of production. Revenue maximisation theory This model argues that businesses try to increase sales or perhaps revenues instead of profits. There are several possible purposes for this kind of objective, they are really * Develop or preserve market share

* Ensure endurance

* Dissuade competition especially new entrants

* Cover larger market

In the context of Nepal, sales maximisation style is accompanied by the business which has stiff competition in the market. coco-cola and pepsi-cola, they the two are two major brands which sells similar kind of product and has similar product price. So these types of company make an effort to maximise offers to gain profit. they tend to cover big market and try defeat their competition interms of sales. Olive Williamson's type of managerial discretion In this version, Williamson states that supervision act to help their own interests – basically to achieve personal utility instead of to meet the interests of outside investors. Businesses run with...

Popular