Answer to Question #218899 in Management for Gagan

Question

The finance manager of PQR Ltd. is of the opinion that, maximizing the profits of the company is the only way of making the company’s performance better. Do you subscribe to his opinion? If so, what are the reasons. If not, how do you justify his stand?

Answer 1

A firm’s performance cannot be assessed from profit maximization only, but, it can be completed by:

-Defining the firm’s past, present, and future. The manager ought to utilize outside resources to offer a firm’s current situation and future linking to market trends. 

- Choosing and implementing SMART objectives for the firm.

-Enacting a performance plan.

-Putting the right workers in their correct places and positions.

-Keeping track of activities done and the firm’s outcomes.