[…] Business Firm: Objective # 1. Output Maximisation 6. ADVERTISEMENTS: The following points highlight the seven main objectives of a business firm. Higher profit makes the firm less vulnerable to takeover. Definition of Conflict 2. Different stakeholders have different objectives. Profit Satisficing. The objectives are: 1. This dichotomy gives managers an opportunity to … Marris Growth Maximisation 4. Levels. Improvements in one objective will often be only achieved on the expenditure of other objectives. Conflicts between objectives There are a number of conflicts between economic objectives, therefore making it difficult to achieve some objectives at the same time. These conflicts arise a result of the Bodily relations among the objectives and source limits. This leaves governments and policy makers with a trade-off; which objective is the most important? Sometimes personal values and business values are not aligned. 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. conflict and understand that conflicts stem from ineradicable human qualities and are related to situations of interdependence, scarce resources and perceptions of incompatibility,8 they might readily accept conflict and recognize its values — provided, that is, they are properly aware of "conflict management" and the need to find a solution. Higher profit enables higher salaries for workers; See more on: Profit maximisation . 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. However, in the real world, firms may pursue other objectives apart from profit maximisation. For example, if teamwork is a value, then this should be the basis of working together to achieve business goals and objectives. Engineering structure Reasons for Conflict 3. The interests of different stakeholder groups can conflict. 1. one example is, the objective to minimize Price is usually at odds with the target To maximise functionality. Alternative aims of firms. 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. Baumol’s Sales Maximisation 5. Profit Maximisation 2. These disagreements can potentially stall or damage the business. Business partner conflicts are common. After reading this article you will learn about: 1. 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. Multiple Objectives 3. While most disagreements are typically quickly resolved with some discussion, there are some more serious disagreements that can threaten the partnership and therefore the whole business. Conflicting stakeholder objectives. The reason behind this objective is the dichotomy between ownership and management. Security Profits 7. ADVERTISEMENTS: Read this article to learn about Conflict. In many firms, there is a separation of ownership and control. Benefits 4. 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). 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