Doing business for profit maximization. Why isn’t this a primary firm goal like it was in...

Doing business for profit maximization. Why isn’t this a primary firm goal like it was in early part of the Industrial Revolution?

Expert Solution

The businesses have come a long way from Industrial revolution and is not only focused on Profit Maximization as was the case in past. The business units are focusing now on maximizing value for the customers. Focusing only of profit is not a sustainable business proposal due to stiff market competition and changing dynamics of customer requirement. The customer is the key in all business decisions and sole focus on profit may result in losing the customers. Hence, nowadays, focus is on value to customer. Also, with the advent of social media and customers becoming more vocal, there is high focus on Quality of products or services. It takes years or decades for a company to build market reputation and one negative news can totally shatter the business. So, the focus on Quality is also prime focus which may adversely impact profitability.

keosha answered 2 years ago

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