Identify the various goals of producers
Producer Goals
Producers have many different goals beyond
what is obvious.
It is important to differentiate between long
term & short term goals.
Goals can also come in conflict with each other
as one may prevent another from being
achieved.
Profit Maximisation
This means to make the greatest
amount of
profit possible within the
boundaries of good
business practice.
This does not mean...
 Ripping off your customers
 Under paying & overworking
your staff & other resources
Treating your customers & your
staff well promotes goodwill &
generally results in good
business
Think about it...
If you were in business what would you want to
get out of it? What would be your goals?
The first goal for all producers is to be
financially viable. This means to make enough
money to stay in business/keep operating
Satisficing..
This means making a
satisfactory amount of
profit.
It could mean that the
producer could have made
more profit but choose to
accept less in order to
pursue other goals
Market Share
Producers may also aim to increase their market share.
This means that for a certain good or service the
increase their share of sales at the expense of
Competitors.
They could do this by offering:
• Low prices
• Value for money
• A wider product range
• Good service
In the spirit of good will....
People are not always in it for the money...
Producers may also wish to be seen as
community minded. Other producer goals
include:
Sponsoring local schools, athletes, clubs etc
Providing Scholarships
Supporting community projects..
Non Profit Organisations
The main goal for non profit organisations or
voluntary organisations is to provide a service
to its members, groups and or the wider
Community
 There is still the need to cover the
costs of production
Essential Goods & Services
When a good or service is essential it is provided
by the government both central & local. It is
generally not viable (“do able”) for a private
sector producer to provide.
Government Goals
What could be the goal of government when
producing goods & services for the public?
Keeping Voters Happy…..?
Providing the best good and or services that
the
nation can afford?
“Balancing the Books”