a term used to describe the acceptance of what is satisfactory instead of pursuing the best or maximum result. There are two main circumstances in which this applies:
1. Setting a strategy based on a satisfactory compromise between objectives. For example, if two divisional directors are each attempting to persuade the firm to pursue a different strategy, the managing director might satisfied by deciding on a mixture of both.
2. Aiming for an achievement that is less than the maximum, perhaps because the firm does not want to draw attention to its powerful market position . For example, instead of aiming for profit maximisation , a firm might pursue a profit level just high enough to finance its expansion plans.