Maximisation of profit Article Example | Topics and Well Written Essays - 5500 words

Maximisation of profit - Article ExampleWhen wee groups of large number come together and work on a project, they invariably apply to analyze as to what their mission and goal are. Organizations are usually classifies into different types like public sector (Central presidencys, state government run offices, schools, colleges, public welfare systems), private sectors (small business partnerships, limited companies, cooperatives, multinationals etc.), Quasi-Governmental presidential terms, Organizations in the charitable sector and regular the churches and trade unions can be referred to as organizations. (N.Kumar, 1997) Hence, every organization issues a mission statement, which includes the purpose of scenery up the organization. In social sciences, organizations are perceived from different dimensions. The general study of how an organization industrial plant is termed as organizational behavior or analysis. The whole of organizations behavior revolves only around one aspec t-its goal. each organization should have, irrespective of the field it operates in, a distinct goal. (N.Kumar, 1997)A goal, not only gives them a precaution of persuasion, but excessively gives the much required motivation to the employees to work towards it, thereby helping them achieve their dominance along with the companys growth. Likewise, a conceived state of an organization in a stipulated amount of time is referred to as Vision. Vision is exceedingly crucial for an organization as it gives a glimpse of the state of the organization after a sure period of time to the employees and stakeholders. Vision can be taken as a benchmark for the companys performance in the future and can be used for comparison of various results recorded by the company. (Davenport Hines, 1990)Private-owned organizations usually have profit-maximization as their sole objective. (Susan Grant, 2000)However, many economists have different views over how an organizations objective should be formulat ed. Different people have come up with different theories over the issue of organizational objective. Many of them clashed, many of them overlapped and impertinently theories were born out of the overlapping theories, but a general consensus is achieved that profit-maximization should be the sole objective organization though other objectives cannot be safely ascribe aside. In this dissertation, Id like to analyze the various theories put forward by economists and then draw a suitable conclusion from the same. I will also be studying a few patterns of various industries by taking certain specific examples of how a few companies overcame different situations keeping in their minds profit-maximization as their sole-objective.Literature ReviewAs said above, it is absolute for an organization to identify its objectives before venturing and investing resources into the venture. So what is/are the goals a financial manager in a company will seek. In the first impulse, the only objectiv e, which comes to, the mind, is profit maximization. Any business endeavour aims at earning profits hence, it may be argued that profit maximization should be the sole objective of the organization. It is complimentary to say, that earning profits sustains the companys existence and can motivate the company to expand its market and