An organization should be more than an instrument that shareholders can use to realize a means. It should represent a coalition between resources and suppliers to increase the well being of all involved in an organizations success (ELTC, 2005). Strongly motivated employees and customers can work together to help an organization pursue interests that meet the needs of all rather than a select group of stakeholders. This will not only maximize an organization's profits but also benefit society at large.
The key to maximizing these relationships is managing the welfare of stakeholders in a general sense (ELTC, 2005). Shareholders are but one of many stakeholders in an organization. A firm should be interests in meeting the needs of shareholders, however other stakeholder relationships are just as valuable to a corporations profitability and success as relationships with shareholders.
Conclusions
All stakeholders in an organization...
Business Assess the organisation in terms of its organisational strategy, objectives, mission and values. Analyse the environment in which the organisation operates with regards to industry, business life cycle, etc. Evaluate the organisation's current reward and pay strategies on two criteria: for meeting its overall organisational strategy and for maintaining competitive advantage in the face of new challenges and changing conditions. Reach a reasoned and evidence-based conclusion about the level of success achieved by
The only ones who will gain from these measures are the CEOs, managers, and Board of Directors. Shareholders will suffer through the actions of the few. Due diligence will be rewarded with dwindling returns for the shareholder. Does Shareholder Value Matter Any More? The old theory was that if banks took care of shareholder value, everything else would fall into place (Nocera 2009). Shareholders were considered one of the most important
Restructuring itself for a better fit with its environment, the company established a Youth Prevention Department, staffed by a senior vice-president in Philip Morris, U.S.A. To look for ways to help reduce smoking among teenagers" (Glover 2008). The relative lack of sincerity of these claims and the transparent dishonesty of Philip Morris' claim to stop youths from smoking is manifest in the fact that the company recently filed a suit
Maximising market share rather than shareholder value may be a critical decision for management, but the right one in the long run. Do you agree or disagree with this statement? Market share is the term used for the dominance of the company in the market, or simply the size of the customer base. Some companies have small base in the regional markets, while some are international. In either case the importance
In other respects, however, the evidence does not readily conform to theoretical predictions. For example, if gross job turnover is taken as a rough proxy for labor market flexibility -- and since stringent EPL reduces both hiring and firing -- it is quite surprising to find that job turnover rates are very loosely related to EPL rankings. Most remarkably, not only are the estimates for Italy and France, at
Business Plan In order to accomplish our mission we set forth the following strategic goals, they include: Build the Financial perspective of our business by addressing how shareholders view the firm and which financial goals are desired from the shareholder's perspective. Goals are closely linked to the business lifecycle and must be adjusted over time. For example, in the early stages, our goal is revenue growth, but as the company becomes more
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