11 Explain why a business might not aim to maximise its profits in the short term.

[Sir Afzal Shad]

11 Explain why a business might not aim to maximise its profits in the short term. [3]

[Shaliza khawaja]

They might want to build customer base and gain their loyalty which would also improve brand reputation.
For example, a cafe may want to offer discounts or promotions that attract customers immediately.
By doing so, they would not only attract customers but also build a loyal customer base, ensuring good amount of profits in the long run and an improved brand image, which would allow them to expand further and later on charge higher prices.

[Subhan Zafar]

{KN}A business might choose not to maximise its profits in the short term because it wants to focus on long-term growth, stability, or reputation instead.
{APP}For example, a new café in Islamabad may decide to keep prices low and offer promotions or discounts to attract customers and build a loyal customer base, rather than charging higher prices to earn maximum profit immediately.By doing this, the business sacrifices short-term profits but creates goodwill and customer loyalty, which can lead to higher and more sustainable profits in the long run.
{AN}Other reasons include reinvesting profits into marketing, staff training, or improving product quality, all of which strengthen the business’s long-term competitiveness. This shows that short-term profit maximisation is not always the best strategy for achieving lasting success.

[Naveen fatima]

[KN] A business might not aim to maximise profits in the short term because it may focus on long term stability and growth instead.
[APP] For example, A new tech company might keep prices low to attract customers and build market share.
[AN] By doing this, the business can gain customer loyalty, increase sales over time and create a stronger position in the market, leading to higher profits in the future rather than just short term gains.

[Muaz Aamir]

KN: A business might not try to maximise its profits in the short term because it could have other goals that help it grow in the long run.

AP: For example, Amazon didn’t focus on big profits at first, it kept prices low and reinvested money to grow faster and attract more customers.

AN: By not chasing quick profits, a business can build a strong customer base that keeps buying in the future. It can also spend more on improving quality or marketing, which helps it stay ahead of competitors.

[Abdul Hadi]

KN: A business might not aim to maximize profits in the short term as it might focus on creating a market presence and increase market share initially.
APP: For example a mobile company might set low prices for a newly launched mobile in order to attract customers and create market share.
AN: lower short term profits can allow the business to gain customer loyalty, the firm may invest in expansion, research and growth in order to increase profit in the king term, increasing profits too early can allow the business to damage relations with customers and staff which will reduce the sustainability of the business over time.

[shamaim shakeel]

nowledge Point:
A business might not aim to maximise its profits in the short term because it may want to invest in its future growth or improve its reputation first.

Application:
For example, a company like Khaadi in Pakistan might spend more money on opening new outlets or improving product designs instead of focusing only on profit right now.

Analysis:
By investing more, the business can attract new customers and increase its sales. This helps the brand become stronger in the market and build customer trust. Once the business has a loyal customer base, it can earn higher profits in the future showing that short-term sacrifice can lead to long-term success.

[Uqbah hadeed kayani]

[KN]it may not prefer to as profit is a long term objective[APP} as profit takes time investments in the R&D department , it is a goal that cant be achieved over a short period of time [AN] instead of that a business may aim to be more advertised in the market to atract more consumers thus allowing them to build a steady base and get there business going in the direction of maximizing there profits in the up and coming years

[areeshasaber]

[kn] a business might not aim to maximise its profits for a short period of time as it might want something long term such as growth.
[app] for instance, a clothing manufacturer might spend money on opening new outlets.
[an] this can lead to growth, more products being sold all over and long term customer loyalty.

[sikander ali]

[KN]in case of recession the business would focus on survival then profit maximisation.
[APP]for instance a in 2008 McDonalds faced a recession and chose survival as had a sudden fall in consumer base and many other outlets like thier competitors where also closing.
[AN]thus they started value meals and made their prices cheaper so that they can keep their customer loyal or regular which helped to increase their sales to a extent and also helped to survive from this recession.

[Wahaj Ashraf]

[KN] The businesses focus may be on other objectives like increasing market share or improving customer loyalty.
[APP] A new business might keep prices low to attract customers even if it means lower profits initially.
[AN]By doing this the business may not be able to maximize its profits but it can grow its customer base and brand reputation which may lead to higher profits in the long term.

[Shuraim Arif]

(KN) This is because the business may prioritize other aims such as improving their brand image or focus on customer loyalty.
(APP) For example, a grocery store may set improving their brand image as their initial priority as a reputable brand image plays a crucial role in making customers loyal to a business.
(AN) Once customers are loyal with the business, it may then slowly start increasing prices. This wouldn't have a lot of effect on sales as customers are already loyal to the business due to their brand image, leading the business to achieving its final goal of becoming profitable.

[Tuqwa]

kn:a business may choose not to maximise profits in the short term to focus on other important objectives.
app:forexample a new clothing brand might keep prices low to attract customers and build brand loyalty instead of charging high prices for immediate profit.
an:this helps the business grow its customer base and reputation leading to higher and more sustainable profits in the long run.

[Ayaan Fayaaz]

[Kn] A business might avoid maximising profit in the short term to focus on long-term growth or stability.

[App] For example, a new clothing brand may keep prices low to attract customers instead of charging high prices for maximum profit.

[An]This allows the business to build customer loyalty increase its market share and create a stronger brand reputation which can lead to higher and more sustainable profits in the future.

[EmmanWaseem]

It may damage brand reputation
As they will not aim to maximise profit they will prioritise the customer satisfaction and loyalty which can help in long term run
Due to this there brand image will become strong and won't lose trust of the customers