Question

Compare and contrast the decisions that are consistent with the firm’s share price maximization goals. In your response, provide at least two peer-reviewed sources to support your answers. As we have discussed, one of the main goals of the organization is to maximize the profits in the organization to increase the firm’s share price. Consider your own organization or a previous organization, what goals were set to maximize the profits? Did these goals come at the “cost” of other important goals for the organization? Discuss your experiences.  

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Answer 1

Decisions that are consistent with the share price of the company would be maximization of the profits and providing up with an efficient system in order to provide the the employees of the organisation a way to synchronise their personal goals with the goals of that of organisational goals so that they can feel that they are highly connected to the organisation and they do not feel isolated in completion of the objectives.

Goals which were set by previous organisation where as follows-

A. Increase in the consistent market share of the company in the overall industry

B. Protection of the interest of the stakeholders of the organisation

C. Gaining of a competitive edge and acquisition of cutting edge technology

these are few of the objectives and goals which was set by the previous organisation and they were trying to gain competitive edge in the overall market in order to acquire the leadership position so that they can maximize the overall advantages associated with those positions.

these goals can be coming at cost of other short-term benefits which would be profit maximization and other ethical consideration about the society and this ethical considerations are always conflicting with the profit maximization because society welfare is also one of the most important prospect of the business because the business belongs to the society, so, the business must return to the society where are the shareholders are always intending to make the higher return and forcing the management to undertake such projects which will be helpful in maximization of their interest,so there will be a conflict of interest.