2020 May

Garuda Indonesia is the country’s national airline. In November 2017 the company’s
Vice-President stated that the airline’s main objective was to maximise revenue.
Evaluate the extent to which di erent business objectives may a ect a rm’s pro ts.
Illustrate your answer with an appropriate diagram(s).

2021 Oct
Visinema, an Indonesian company that produces TV shows and feature lms, is expanding
into neighbouring countries. The company is also planning to acquire several Indonesian
animation studios.
For an industry of your choice, evaluate why many businesses have growth as their main
objective.
Illustrate your answer with an appropriate diagram(s)

2022 Jan
JBS is the largest meat processing rm in the world, as measured by value of sales. Its
revenue was $814.5 million in 2020. After a signi cant increase in sales to China in quarter 4
2020, its total revenue from sales to China rose by 60%.
Evaluate the view that revenue maximisation is always the main objective of a rm. Illustrate
your answer with an appropriate diagram(s).

—
Business objectives can vary between rms for example, private sector businesses and public
sector businesses. Since private businesses are owned by private individuals they have pro t
maximising as the main objective.
可以expand⼀下罗辑链，点⼀下reasons for profit maximisation
At pro t maximising point MC=MR, rms would
want to increase average revenue so as to get
supernormal pro ts. This is the main objective of
large businesses such as public limited
companies.
1. profit maximisation
2. revenue maximisation
3. sales maximisation
4. profit satisfaction

Co-operatives, which are owned by its members, such as workers, may have di erent
objectives. The main aim of co-operatives is to increase the welfare of its members. They do
not have pro t maximising as the main objectives. This is as most co-operatives get
government grants or funds to keep going. So, they work for the betterment of the members.
give examples. eg. worker cooperatives, how it increase the welfare of its members

Also, some charity organisations or charity branches of famous companies such as LEGO do
not have pro t motive or welfare of members.1They work for the betterment of the
unfortunate, poor of people with diseases, mostly in developing countries. They are funded by
pro ts from the owner so they do not need to maximise pro ts. 这句话有点点怪，可以考虑直接写
social cooperatives the entrepreneur does not aim to make profits

1. they use any prifit they have made to carry out any socially-beneficial activities. For example
fi
fi
fi
fi
fi
ff
fi
fi
fi
fi
fi
ff
fi
fi
fi
ff
fi
fi
 the profit is paid to government, while the main objective for
the government is to improve living standard for their
citizens. In this way, most profits will then be used to
improve quality of services. Overall, they do not need to
state-owned enterprises make profits as much as private sectors
Moreover, public sector businesses do not aim to maximise pro ts. But rather, they work for
for example, the key sectors such as energy, education etc.
the welfare of the public, providing merit goods and public goods which private sector could
not provide. They are funded by government tax revenues, so they do not need pro ts.
to survive后⾯可以补充说明类似于to constantly provide services for their members
However, not all co-operatives get help from government to achieve its objectives. So, when
they do not get funding from government, co-operatives would have to make pro t to
survive, at least in the long run. So, it can be argued that all private rms have to make pro t.
at least 和 long run 不是很适合放在⼀起说，可以直接写make profit to survive in the long run

Furthermore, large transational companies and even other public limited companies have
corporate social responsibility in their business agenda; this is where they work for the
betterment and improved living standard of its consumers or employees. Coca-Cola employs
such techniques around the globe, such as provi ng clean water in India. So, welfare is a part
of amost all private businesses, meaning there is lesser variation in business objectives.
如果题⽬是do all businesses aim to maximise/make profits, 这段更适合⽤在正⽂哦，如果是assess different objectives就可以做evaluation
Also, the commercially oriented businesses in public sector will aim to maximise pro ts. Most
of these businesses are partly or mostly owned by private individuals, so in order to keep the
owners happy, pro t has to be made. Also, these companies provide some sort of good, such
as railway or electricity, and so, will need pro t to innovate and enhance the service. Even
though most are supported by government revenues, this may not be possible for long run, so
they have to make pro t to survive. 这段很完整～

Lastly, divorce in ownership of public limited companies may mean they do not always
maximise pro ts. Managers may aim for pro t satisfying to keep shareholders happy, while
engaging in other objectives, such as higher wages or better working conditions.

In conclusion,…
fi
fi
fi
fi
fi
fi
fi
fi
fi
fi
fi
fi