Question

Please respond to the following in a minimum of 175 words:

There are many potential goals of a corporation, such as: minimize costs, maximize sales, maximize employment, maximize earnings, maximize shareholder wealth, maximize dividend payments, etc. Which one is the best for the long-term health of the company and society?

Answer 1

Every organisation or corporation has different set of goals which they thrive to achieve. Among them, the most common goals are, maximising shareholders wealth. For maximising the wealth of shareholders, increase in profit is required. Increase in profit can be achieved by either minimising the cost or maximising the sales. Minimising the cost may lead to production of poor quality product. Thus, maximising sales is the best available option for a company.

The best goal for long term health of a company is to Increase the sales of a company.

Increasing the sales should be on everyone’s list of long term business goals. No business is incorporated just to recover the costs every year but to make some money too! Year over year growth is one of the top factors in being able to determine if the businwsses are thriving or flailing.

If your goal is to increase the number of clients you have by this time next year, set a monthly target giving you something to aim for. Alternatively, you may be more interested in enhancing your bottom line for which you need to set a revenue target. Simply stating that you want your revenue to be larger than it was last year is not specific enough. Include an actual revenue number in your marketing plan to ensure you reach your goal.

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