Article #2 Profit Maximization

Maximizing Profits that will get you the greatest share holder Value.

 With profit maximation when planning is that you should follow the legal circumstances that will allow to maximize profits or be able to have the largest shareholder value you can produce. In profit maximization you will have gray areas and what gray areas are is when there is serious uncertainty in a situation.

 Dealing with gray areas look at the economics side and not stop there. Approaching the gray areas deal with them by coming up with analysis and according to https://hbr.org/2016/09/the-maximize-profits-trap-in-decision-making “with analysis you will deal with the financial side of it as well.”

Trusting yourself and being able to rely on your judgement will go a long way in the end when dealing with gray areas. Managers will often have to put themselves to make decisions that may affect the employees they work with. In an interview with my teammate Sam Moore he said, “As a future teacher and for all jobs in life I feel like there is gray area in everything.”

Dealing with economics and looking past economics with gray areas. Managers when it comes to organizations is to maximize the economic returns.

The managers that are in an organization do not have to maximize the return to shareholders, this is looking beyond the economics side. https://hbr.org/2016/09/the-maximize-profits-trap-in-decision-making said, “Managers are obligated to be able to server interests to the shareholders and the corporation according to the law.”

The duty of maximizing economic returns has been continuously evolving and what we see in the United States toward the end of the 20th century is a supreme decision principle. In an interview with one of my teammates Abraham Dirkx said, “It portrays the idea and the sole purpose of benefitting the shareholders”

In organization managers will have wide flexibility when accomplishing the interests for the shareholders and the corporation.

Thinking of how in terms to get that long term profit with using profit maximization. According to https://hbr.org/2016/09/the-maximize-profits-trap-in-decision-making said, “ It is a simple, clear, and highly useful criterion for routine decisions in businesses operating in competitive markets and with sound legal systems.”

Being successful you want to have high profits to keep stable and have success in the business world. Do not settle putting your good judgements aside for the economic obligations look beyond economics of the situation.

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