Products at the End of the Life Cycle

September 9, 2011 1 Comment

pirate_walk_the_plank_800_clr_14805The company can sell its product in a different environment. The new market can be domestic or international depending on the product specifications and the new market demand. Products at the end of their life cycle can be a burden on the company because the margin between manufacturing the product and its selling price is declining (Jevons et al., 2007). Low-tech cell phones are a good example for market relocation. The low-tech phones may be at the end of their life cycle in the developed countries, but there is a good demand for such phones in the developing countries because of their relatively low price. The cell phone users in the developing countries need simple to use phone to communicate in the remote areas and other high-tech functions are neither important or available in the remote areas.

References:
Jevons, C., Ewing, M., & Khalil, E. (2007). Managing brand demise. Journal of General Management, 32(4), 73-81.

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The Purpose of the Business

September 6, 2011 Leave a comment

The purpose of the business is to maximize shareholder value, but the stakeholder may be enriched in the same process. The media is evaluating the organization according to its hiring and firing policy and practices. The organization may be firing employees because of a strategic and profitable decision but the media will report this decision negatively. The organization may be hiring without good business sense but the media will positively talk about the organization even if the hiring is adding unnecessary cost to the bottom line. Drucker (2004) state that the purpose of business is to create and keep a customer. The customer will create the jobs and will demand products from the organizations. The customer demand will increase the organizational productivity which will enrich the shareholder then the stakeholder.
Rasmussen and Den Uyl (2009) state, the purpose of the business is to maximize the owners value by selling goods or services. Business leaders focus on their strategy’s direction, momentum, and balance to achieve the business goals. Setting and implementing good strategy will maximize the shareholder value and enrich the stakeholder. Walker and Shenkir (2008) state, the leader should examine the effect of the strategy on the organization’s objectives after he or she develop the strategy.

References:
Drucker, P. (2004). The daily drucker: 366 days of insight and motivation for getting the right things done. New York: Harper Business.
Rasmussen, D. B., & Den Uyl, D. J. (2009). Making room for business ethics: Rights as metanorms for market and moral values. Journal of Private Enterprise, 24(2), 1-19. doi: http://www.apee.org/journal-private-enterprise.html
Walker, P. L., & Shenkir, W. G. (2008). Implementing Enterprise Risk Management. Journal of Accountancy, 205(3), 31-31.

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