Theories of Satisficing Behaviour

We have already referred on several occasions to the need for a firm to earn sufficient profits in order to satisfy its shareholders. In those cases we regarded satisfactory profits as an objective which ran alongside, but which was subsidiary to, other objectives. There are, however, a number of theories which regard the achievement of satisfactory profits as the firm’s primary objective, this objective replacing that of profit maximisation which is regarded as impossible of achievement in a world of uncertainty.