A family-owned bubble tea chain with 15 outlets is deciding its main aim for the next three years. Compare how each objective affects different groups.
Maximise profit
- Owners: Higher profit now and higher dividends.
- Customers: Prices may rise where the chain faces little competition.
- Workers: Costs are kept tight, so pay rises may be limited.
Profit maximisation rewards owners and funds investment, but may mean higher prices.
Grow market share
- Customers: Lower prices and more outlets nearby.
- Owners: Lower profit in the short run.
- Future: A larger chain gains economies of scale.
Growth sacrifices profit today for size and lower costs later.
Focus on social welfare
- Community: Hires older workers and uses recyclable cups.
- Owners: Higher costs mean lower profit.
- Brand: Customers who care about these aims may become loyal.
A welfare aim benefits society and may build loyalty, but raises costs.