Producer Goals

Identify the various goals of producers

Producer Goals

Producers have many different goals beyondwhat is obvious. It is important to differentiate between longterm & short term goals. Goals can also come in conflict with each otheras one may prevent another from beingachieved.

Profit MaximisationThis means to make the greatest

amount ofprofit possible within the

boundaries of goodbusiness practice.

This does not mean... Ripping off your customers Under paying & overworking

your staff & other resourcesTreating 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 asatisfactory amount ofprofit. It could mean that theproducer could have mademore profit but choose toaccept less in order topursue other goals

Market Share

Producers may also aim to increase their market share.This means that for a certain good or service theincrease their share of sales at the expense ofCompetitors.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 ascommunity minded. Other producer goalsinclude:Sponsoring local schools, athletes, clubs etcProviding ScholarshipsSupporting community projects..

Non Profit Organisations

The main goal for non profit organisations orvoluntary organisations is to provide a service to its members, groups and or the widerCommunity

There is still the need to cover the costs of production

Essential Goods & Services

When a good or service is essential it is providedby the government both central & local. It isgenerally not viable (“do able”) for a privatesector producer to provide.

Government Goals

What could be the goal of government whenproducing goods & services for the public?

Keeping Voters Happy…..?Providing the best good and or services that

thenation can afford?“Balancing the Books”