Profit maximization questions x 2 Essay Example | Topics and Well Written Essays - 750 words

Profit maximization questions x 2 - Essay ExampleTherefore, the fare is, to strike a balance between the ii, that is, to not run after the profits to the issue that holiness and apprise come at stake. As corporations it is imperative for us to hold our businesses in a way of life that our face-to-face values, which, in the first place should not be against that of the play along, are aligned with what the society expects from us. A Business carries a two fold mandate, to earn profits and to turn backk to justify the means of doing so. integrated Behavior should be governed by business ethical motive and values and at the same time get wind certain methods to induce profit maximization. Being a part of the top level management as executive I will seek to define moral and ethical guidelines in which to undertake the business, do it a part of my organizational behavior. The very culture needs to be such that it helps promote values and business ethic. Its certainly undesirab le to have cost cutting at the spending of humiliated quality and sub standard products as in a way it may bring in short consideration profitability and increase shareholder wealthiness but in the long term it will head to degradation of the companys image. I would try to take measures and communicate throughout the organization to promote moral values and to not give in at the mere expense of profitability. However, this does not mean that the pursuit of profitability is of secondary value. As I stated earlier the aboriginal is to strike a balance between the two. I imagine seeking profitability on the lines of personal values and beliefs will actually act as a catalyst and exponentially create wealth for the stake holders through better image amongst them. There is absolutely no point in course a business that violates personal values as it shatters the very being and makes him a slave of profitability. in one case that violation is made the person has no moral obligation and can go to any extent to achieve the latter objective. Hostile take overs, industrial espionage or even violating the rights of customers and suppliers may lead to some sort of profitability, but this type of corporate manslaughter is certainly questionable. Having a definitive framework in which to carry out the business would certainly be my initial responsibility and in order to see if its being followed, as most of the time there is a disconnection between the companys code of ethics and the companys actual practices, a corporate Value appraisal system should be in place to honor a check and balance. Ans.2 If we try out the net profitability after tax the company has had around 11% profitability each year whereas the market moved 13% up in the initial two years and the difference between the last two years is about 8.8%. These numbers suggest that the company is performing in a somewhat similar manner as the market. Now, if the company holds a leash position in the indust ry and has been having a smooth run of profitability and yet the share price has remained constant, it is certainly a message for the company that something is certainly wrong. The share price explains the sentiments of its investors about that particular company, if they believe that the company will do well, the share price will show a bullish prune but if otherwise, the stock price will go down. Now the company needs to understand and analyze its competitive position in the market. It should seek to evaluate how the consumer perception has changed about the company. Having known that the share value of the competitors has grown, this is a