LAHORE COLLEGE FOR WOMEN UNIVERSITY

ASSIGNMENT OF SUBJECT MANAGERIAL ECONOMICS Topic: Identifying Goals And Constraints

Submitted to: Ms. Talat Shahid Submitted by: Aisha Shahid 3220 BBA 8th Semester

target environment. The goal of maximizing profits requires the manager to decide the optimal price to charge for a product. how much of each input to use. These constraints include such thighs as the available technology and the prices of inputs used in production. such as limited development resources or a decision by senior management that restricts the way you develop a system. Constraints can be economic. or environmental and pertain to your project resources. how to react to decisions made by competitors. When making sound decisions we have to have well defined goals because achieving different goals entails making different decisions. technical. which technology to use.Q ± How appropriate determination of goals and rational assessment of constraints can enable management to work efficiently and optimize profits? Identifying Goals And Constraints Every organization has its goals. those in a firm¶s marketing department might be instructed to use their resources to maximize sales or market share. A constraint is a restriction on the degree of freedom you have in providing a solution. . Examples of longterm goals are writing a paper and passing a class. constraints make it difficult for managers to achieve goals such as maximizing profits or increasing market share. how to much to produce. schedule. Constraints are effectively global requirements. Different units within a firm may be given different goals. Examples of short-term goals are finishing your homework and doing well on tomorrow's test. or to the system itself. But unfortunately. A long-term goal is something you want to achieve at some later date. A goal is something you want to achieve. Goals are important for the efficient working of organizations and for optimizing of company profits. political. A short-term goal is something you want to achieve soon. Within these goals lies certain constraints. while those in the firm¶s financial group might focus on earnings growth or risk-reduction strategies.

Management actually plans. help them work with peace of mind. Also. losses and low quality output. but also from better and optimum use of input. organizations may not function as it should. thus reducing the cost again. Increases Stability The company should be identify goals such a fashion that external market turbulences do not hamper the company¶s functioning. specific goals are setup which can only be achieved if all the parts of the organization function together and efficiently. Without proper management this will not be possible. thereby lowering overall costs and attaining the state of µresource optimization¶. so this sense of responsibility makes the management more functioning. in turn. executes and balances the resources of a company in such a way that there is maximum work output to attain the goals of organization swiftly. which would. Proper management makes sure that each part of the company works towards achieving a common goal without disarray. Management will provide increased stability and adaptability to the company. common goal may not be achieved. the workers would not be apprehensive about losing their job. wastage is reduced. However. Proper utilization of resources and reduced wastage prevents both under employment and exploitation of resources. which would further lead to delays. In absence of proper determination of goals and assessment of constraints. It also employs the specialization of employment and leads to increased productivity and quality output.Management¶s efficiency and optimization of profits through goals and constraints: Achieving Company Targets When a company begins its operations. . This requires effective changes that need to be made in the company. helping it survive market conditions and grow with time. Management can identify resources which are scarce and find alternatives for the same. while retaining work quality. without hurting the company¶s stand or its workers too much. This means that company is making profits not only from output. Reduction In Wastage When resources of a company are effectively managed.

Happy and de-stressed workers work with more zeal and enthusiasm. This increases quality and quantity of output. which aids in the growth of the company.Large Profits Once an organization is achieving its goals and assessing constraints the management is working actively. So determination of goals and rational assessment of constraints can enable management to work efficiently and optimize profits. beating competition and emerging out victorious. Thus proper management helps to build efficient organizational structure. . set targets that are testing yet achievable and optimize resource utilization. Such a scenario increases profits by maximizing productivity and reducing costs.