Multiple Objectives 3. Profit Maximisation 2. The interests of different stakeholder groups can conflict. ADVERTISEMENTS: Some important alternative objectives of business firms are discussed below: (i) Baumol’s Hypothesis of Sales Revenue Maximistion: Prof. Baumol has postulated maximisation of sales revenue as an alternative to profit- maximisation objective. one example is, the objective to minimize Price is usually at odds with the target To maximise functionality. Definition of Conflict: (A] Definition: ‘Conflict’ means disagreement, opposition of any kind, argument, antagonism or hatred between two persons or groups or among many persons or groups. Conflicts between objectives There are a number of conflicts between economic objectives, therefore making it difficult to achieve some objectives at the same time. Improvements in one objective will often be only achieved on the expenditure of other objectives. After reading this article you will learn about: 1. Security Profits 7. Higher profit enables higher salaries for workers; See more on: Profit maximisation . However, in the real world, firms may pursue other objectives apart from profit maximisation. Marris Growth Maximisation 4. This dichotomy gives managers an opportunity to … This leaves governments and policy makers with a trade-off; which objective is the most important? Conflicting stakeholder objectives. Conflicts between business partners aren’t uncommon. Levels. Conflict resolution is the process of resolving a dispute or a conflict by meeting at least some of each side’s needs and addressing their interests. In many firms, there is a separation of ownership and control. ADVERTISEMENTS: Read this article to learn about Conflict. Business Firm: Objective # 1. Business partner conflicts are common. Satisfaction Maximisation. Profit Satisficing. ADVERTISEMENTS: The following points highlight the seven main objectives of a business firm. The objectives are: 1. Baumol’s Sales Maximisation 5. Different stakeholders have different objectives. Definition of Conflict 2. Reasons for Conflict 3. For example, a marketing objective could be, “In order to meet our business objectives of 70% market share in the cloud server market, we will increase our online marketing budget by 30%, increase our spend on awareness activities by 50% over last year, and achieve a cost per customer acquisition of $120 by the end of 2017. Engineering structure Benefits 4. Higher profit makes the firm less vulnerable to takeover. 1. The reason behind this objective is the dichotomy between ownership and management. Alternative aims of firms. Conflict resolution sometimes requires both a power-based and an interest-based approach, such as the simultaneous pursuit of litigation (the use of legal power) and negotiation (attempts to reconcile each party’s interests). These disagreements can potentially stall or damage the business. 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