Reference no: EM133358518

Questions: Discussions below and compare the two to answer the following questions. Conclude a brief reflection on the key points of the discussion forum and your final thoughts on the topic of what is the propose of business??. Synthesize the information that you posted along with that of your colleagues. What was similar? What was different? How has your thinking evolved? How have your thought (not) changed based on the discussion?

DISCUSSION ONE:

The purpose of business is often viewed as creating value for shareholders by providing goods or services and being profitable. Charles Handy, however, challenges this perspective and contends that rather than focusing solely on increasing profits for shareholders, businesses should be seen as producing profit to improve the quality of life for employees and service communities of customers. He contends that organizations ought to be run as communities, adopting moral principles to uphold both internal and external integrity. The success of a business should not only be determined by its financial performance, but also by how it performs for its customers, employees, and the community at large. Employers should be viewed as assets rather than costs, and businesses should consider themselves to be wealth-creating communities rather than merely profit-seeking entities. The goal of a company should be to produce benefits that are valuable to all of its constituents, including the community, the customers, the employees, and the shareholders. According to the article "What's a Business For?" published in the Harvard Business Review, the primary function of a business is to generate profits for its shareholders; however, the purpose of a business goes beyond this primary function. Instead, companies should make it their mission to create value for all of their constituents, including customers, employees, shareholders, and communities in which they operate and do business. This can be accomplished by providing high-quality goods and services to customers, as well as by offering rewarding employment opportunities. Both the satisfaction of the customer and the quality of the product should be a top priority for businesses. Customers are an organization's most important resource, and it is imperative that they remain the primary focus at all times. The goal of businesses should be to supply customers with high-quality goods and services that cater to both their requirements and their desires.

DISCUSSION TWO:

Handy pointed the trust between people and businesses is cracking. The reason was considered that executives made their efforts to satisfy shareholders' expectations, and put other stakeholders behind. However, Businesses need to focus more on stakeholders, social responsibility, and be more ethical. Pang Donlai, a chained retail store based in Xuchang, Henan, China, was success locally. Pang Donlai offered good quality products with a relatively reasonable price, and provided comfortable shopping environment for their customers; the employees got paid equally and received bonus as commitment. Unsurprisingly, Customers and employee's loyalty were higher than expected, what made the business even more competitive and profitable. This example shows that companies could be successful and sustainable by considering all the stakeholders' expectations, win-win situation is created.
The purpose, or goal of a business is to make a profit by providing goods or services to customers. A business exists to create value for its customers, stakeholders and society as a whole. Businesses generate revenue by selling products or services, which allows them to pay their employees, invest in new products or services, and grow their business. One of the ultimate goals of a business is to generate a return on investment for its shareholders or owners.

However, the purpose of business goes beyond just generating profits. In most cases it can create jobs, contributing to the local economy and contributing to the overall well-being of society. For example, a business can provide valuable goods and services that improve people's lives, such as healthcare products or renewable energy solutions. In addition, businesses can also play an important role in addressing social and environmental issues by implementing sustainable practices and participating in corporate social responsibility initiatives.