Should Profit Be The Only Purpose Of A Business? An Academic Essay

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Academic Essay
Should Profit Be The Only Purpose Of The Business?
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SHOULD PROFIT BE THE ONLY PURPOSE OF THE BUSINESS?
Introduction
A deep institution made by the human being is names as business. The objective of the
business is not only making profit out of the business as much as possible. Its main motive
has the exaggeration of something else. A business need to put reason behind the
profitability. Main reason at the back of this is the primary purpose of the business is to
creating value and need fulfillment of the stakeholders. Ethics and business goes
simultaneously. Sometimes people in business acts for selfish reasons or sometimes they acts
for other-generated interests. In ant business, money should be considered as the bi-product.
The main objective of any organization should be making the living way of the human-being
easier. When the business is successful and diversified, an economy of that place get thrives.
A business can be stated as successful when it generates profit out of it. Profit generation
should not be the only objective of the business. There are several other objectives of the
business which are emerged with it. The objectives can include responses to variation in the
business growth, environment, responsibilities or the growth.
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SHOULD PROFIT BE THE ONLY PURPOSE OF THE BUSINESS?
Discussion
Other objectives of Business: It is observed that in the time of business expansion, the
objectives of the business keeps on shifting from earning profit to expand the market size and
greater sales making of the units produced from the business. In the other hand, when a
organization is new and there are competitions in the present market, the objective and the
purpose of the company shifts from profit generation to ensure the existence of the business
in the market. The company needs to sell at the minimum prices. As stated by Mkpojiogu and
Hashim (2016), if a business faces any decline situation in profit, it can try to do the cost
minimization or can accelerate the revenue for regaining the point of profit. How to meet the
consumers’ demand, measuring this is the business’s responsibility. For this, the business
needs to adopt the strategy of product differentiation if the business is in competition by
producing customer unique and rare products.
On the other hand, profit generation, there are several objectives which are fulfilled by the
organization like social and corporate responsibility. It is observed that the business needs to
meet the social responsibilities. The society expects the fulfilment of services and goods
which are served to them. The consumers also expect that the business needs to consider the
impacts on the society and the human rights by the services and goods which have been
produced by the businesses. The business should not only be profit-oriented, but need to be
responsible for the other sever objectives that are to be met. As stated by Mkpojiogu and
Hashim (2016), the business needs to follow some specific policies which can safeguard the
nature of the properties. The other vital function of the organization is to achieve the
stakeholder’s probable expectations. The business is not able to perform properly without
achieving the stakeholder’s expectation.
The stakeholders are included with consumers, employees, suppliers and the government. A
business is still needed to meet up the aims of stakeholders in order to ensure the net
turnover of the organization. It is impossible for an organization to generate profit without
encountering the demands and necessities of the stakeholders. Therefore it can be seen that
the organization will never be capable of meeting the company's objectives without meeting
the suppliers ' demands. Segmentation of the products or services is another major
consideration that the business needs to address to benefit the organization and make a profit.
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SHOULD PROFIT BE THE ONLY PURPOSE OF THE BUSINESS?
As Moos and Botha (2016), has stated, Profit has never be the ultimate goal of the business
and can better be explained with the assistance of an instance. Last year, when Saudi Arabia's
women were allowed to drive, a commercial was launched by the company of Coca Cola that
celebrates women's victory. The commercial applauded women's freedom in Saudi Arabia
brilliantly. The company released the television commercial for Saudi Arabia in which a
father hands over the keys of a car to his daughter to drive the car. The commercial, here, was
not profit-oriented at all, but was focused towards a social message. The multinational
company started the trade here to just celebrate the respect and position which women in
Saudi Arabia have achieved. As Spence (2016) have opined, the whole advertisement,
perhaps have allowed the company to draw more new customers, however the message it was
trying to express to the citizens was magnificently articulated to the rest of the world. This
was considered to be good gesture towards the country by Coca Cola. There are several such
instances, in which the companies have evidently represented that business isn't always
profit-oriented, and also may have other goals than just earning money.
Although, people often have considered businesses as the only money-making entity, but the
organization continues to follow several other goals and objectives. As stated by Vitell
(2015), retention of the employees and attracting them towards an organization is another
business objective which has an immediate impact on the business's profit and market share.
Employee turnover is regarded to cost money in lower productivity as well as employment
costs. This usually involves paying the placement agencies and job advertisement. It is the
responsibility of a business to provide workers with job satisfaction so that workers are able
to make a significant contribution to accomplish the organizational goal. It is directly
proportionate to the productivity and profit.
Critical analysis of the objectives of organization: As Ali and Raza (2017), have opined, the
organization's sustainability is also another objective which the business provides. While the
competitiveness is intense, the intent of the company is to survive through the increasing
competition if the business is deviated from making profit. For the commercial enterprise,
taking approaches becomes extremely important which would assist the business to flourish
and survive. As stated by So et al. (2016) the intent of the business is shifting from one
element to another. The business will never be able to generate a profit without sustainable
economic growth. It is therefore vital to reach the appropriate customer segments for the
organization. It also may be one of the significant intentions of the company.
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SHOULD PROFIT BE THE ONLY PURPOSE OF THE BUSINESS?
As Mkpojiogu and Hashim (2016), have argued, to provide quality service the customers is
another primary objective of an organization that the organization needs to accomplish. The
business would never be able to develop its operations without having reached the right
consumer and hence the profit margin of an organization will never improve. Focusing on
consumer satisfaction is essential for each and every business organization regardless its type.
As opined by Kaura, Durga Prasad and Sharma (2015), customer expectations, demands,
requirements as well as satisfaction of customers play a significant role in generating profit
for the company. Marketing is much more than attracting customers and developing a process
for creating a share in the market effectively. The main intention of the changed
management is to build a vibrant organization which will be prepared to meet up the issues of
the industry. Being ahead of the market competition and gaining sustainability towards the
growth and development of the company is interrelated. A detailed study of the competitor's
industrial operations must be an existing business objective. For staying ahead of market
competitiveness, the organization should therefore analyze its products and
services attentively, as it will help the company to grow and prosper on the global platform.
All of the goals addressed throughout this study directly influence the organization's profit
and also helps it to recognize the business's objective and vision as Spence (2016) has stated.
A further intention of a business may be to provide an outstanding customer service in order
to retain and attract the customers. A company if provides their customers with better and
improved service, it can easily build a strong base of loyal customers which would help the
company flourish further. This in turn escalates the revenue earned by an organization.
Increasing the company's productivity also come under the objectives of a business
organization and is needed to be taken care of efficiently. Doing so will assist the company to
maintain product quality.
The research so far has discussed certain goals which the organization may accomplish.
Many of the scholars, furthermore, had also asserted that all approaches an organization
pursues are business-oriented and thus benefit will become the business' only intent. the
business's marketing activities benefit directly the organization's revenue. The business will
not be able to acquire a gain without all these strategies. The research here highlights the fact
that the business wouldn't be able to increase its performance and client satisfaction without
considering profit goals. It has also been argued that each of these parameters is intricately
linked with each other and has the ability to impact business flexibility.
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SHOULD PROFIT BE THE ONLY PURPOSE OF THE BUSINESS?
As the study suggests that the business cannot grow in a positive direction without the help of
these objectives in the organization, as these are the key elements of any company. The
researcher of the study has set all these elements as the main key that is subjected to the profit
of the organization. In this study, it is also provided that without all these elements the profit
cannot be achieved in a positive way. In the other hand, the study also described that the
elements related to the company's benefit can be a shift to other situation as the need of any
company. The study proves that the profit is not the only key factor of the organization which
needs to be focused. As opined by Due and Lund (2018), the main reason behind this edge on
this profit area is that there are other social situations that the company needs to be done and
fulfilled by that particular company. In the time where companies are investing in a business
in any certain country, their cultural difference is the biggest issue that is faced by that
particular company. This reason can never be ignored by any company, as this is one key
aspect of that company. The company needs to fulfil some responsibilities regarding social
issues. In addition, ignoring all these factors can reduce the revenue and the profit of the
company as described by the author.
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SHOULD PROFIT BE THE ONLY PURPOSE OF THE BUSINESS?
Conclusion
In this study, the author has described the profit related to the market if only affecting the
business or not. This study also discussed various subjects related to the business which need
to be fulfilled by the company. There some purpose regarding the business which needs to be
taken care of by the company such as the responsibility of the corporate, services related to
the consumers and satisfaction of the consumer. All these subjects and its analysis showed
that these features of the company are involved with the profit section and in further
handling, these subjects can help to gain more profit. This study also showed the impact of a
good service towards the consumer can help to earn more consumers and can further attract
more customers in the company.
If they failed to do that company can lose their old consumers in the field and further cannot
attract more consumers to the company, this cannot be helpful to the company’s benefit
regarding the profit. As described by many scholars, the profit earning needs to be the sole
target of the company, that the company is strategically is achieving. The purpose needs to be
served by a clear and accurate strategy related to the business. The company needs to make
sure that all the strategy related to the business is helping to gain the ratio of revenues. This
study analysed all the subjects that can be useful in order to raise the profit margins of the
company, though the profit earning of the business is not the only purpose of the company, as
the situations regarding the company keep changing.
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SHOULD PROFIT BE THE ONLY PURPOSE OF THE BUSINESS?
References
Ali, M. and Raza, S.A., 2017. Service quality perception and customer satisfaction in Islamic
banks of Pakistan: the modified SERVQUAL model. Total Quality Management & Business
Excellence, 28(5-6), pp.559-577.
Due, H.K. and Lund, C., 2018. Investing with dual objectives: the investment decision of
impact investors and their preferences for the business model of social ventures: a qualitative
exploration (Master's thesis).
Kaura, V., Durga Prasad, C.S. and Sharma, S., 2015. Service quality, service convenience,
price and fairness, customer loyalty, and the mediating role of customer
satisfaction. International Journal of Bank Marketing, 33(4), pp.404-422.
Mkpojiogu, E.O. and Hashim, N.L., 2016. Understanding the relationship between Kano
model’s customer satisfaction scores and self-stated requirements
importance. SpringerPlus, 5(1), p.197.
Moos, M. and Botha, M., 2016. How do age and location affect a business? Evaluating the
objectives, outputs and outcomes of small business policy. South African Journal of
Economic and Management Sciences, 19(3), pp.344-357.
So, K.K.F., King, C., Sparks, B.A. and Wang, Y., 2016. Enhancing customer relationships
with retail service brands: The role of customer engagement. Journal of Service
Management, 27(2), pp.170-193.
Spence, L.J., 2016. Small business social responsibility: Expanding core CSR
theory. Business & Society, 55(1), pp.23-55.
Vitell, S.J., 2015. A case for consumer social responsibility (CnSR): Including a selected
review of consumer ethics/social responsibility research. Journal of Business Ethics, 130(4),
pp.767-774.
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