Different Objectives

Understanding different objectives

Growth

Profitability

Market share

 

Growth

Growth is often associated with the sales or the number of employees

New businesses do not aim for growth initially

 

Profitability

Profit is the difference between total costs and total revenues

Almost all businesses aim for maximum profit

Businesses need profit to pay the costs of business and to provide earnings for shareholders

 

Market share

Market share is the proportion of a company’s sales to the total sales in the market

For example your company sells 60 toys a month and there are a total of 100 toys sold in the month. Your company has a 60% market share.

Companies want to increase market share to achieve economies of scale and growth