Problems of pursuing only profit objectives, Strategic Management

Assignment Help:

Q. Problems of pursuing only profit objectives?

- Conflict with other stakeholder goals for example customers will want a better service and not want to pay anymore, a better service may involve training costs for staff which would have to be paid for out of profits.

- Encourages short-term thinking by managers as they are only interested in increasing short term profits at the detriment of long term profitability and survival.

- Other non-financial measures are ignored which would give a better rounded assessment of an organisation. Examples would be customer feedback, customer complaints, employee turnover, market growth, reasons for faulty items.

- Not relevant to non-profit making organisations as their main aims are other things such as maximising profitability.

- There is a huge temptation to massage figures if only measurement used to reward managers is on the grounds of profit generation.


Related Discussions:- Problems of pursuing only profit objectives

Cadbury dairy milk, Value proposition and product customer connect of cadbu...

Value proposition and product customer connect of cadbury dairy milk

What is organizational design, 1.Middle managers are often at the center of...

1.Middle managers are often at the center of efforts to develop tactical plans to implement established strategies. How are tactical plans typically established? What challenges co

Market based approaches, Q. Market based approaches? Cost based approac...

Q. Market based approaches? Cost based approaches to transfer pricing can ignore what external competition would charge, therefore 'open (external) market price' could be used

Strategy, Strategy formulation presupposes a set of goals and objectives. W...

Strategy formulation presupposes a set of goals and objectives. Why aren’t goals and objectives obvious? What characteristics of people and organizations can make setting goals and

Discuss the main categories of the matrix, Question: (a) ‘Many organi...

Question: (a) ‘Many organisations are using the internet a tool for survival. Digital firms require new organisational designs and management processes'. Explain how the Por

Prepare the table showing net profit and residual income, Question: A l...

Question: A large conglomerate with diverse business activities is currently considering whether it should commence Project X and has gathered the following data: Project X

Describe about interest cover, Q. Describe about Interest cover? Intere...

Q. Describe about Interest cover? Interest cover =   (Profit before interest and tax (PBIT)/ Interest payable)            (no. of times) Interest cover shows the safety of e

Consolidation is concerned with, Protecting and strengthening the organizat...

Protecting and strengthening the organization's position in its present markets by its current products

Mensa, I need a five year plan with cost estimates and a time line also net...

I need a five year plan with cost estimates and a time line also net present values at 10% discount rate

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd