Purpose of Firm, Product and Society

During learning innovation, I redefined important business concepts in my mind. Those argon about what a union, a annex, and the society should be like. Lets start to share the ideas. 1. What should a usance of a company be? I learned in the beginning that the dissolve of a company is to maximize profit. To maximize profit, company should sputter for maximizing monetary value and minimizing cost. However, is it the only purpose of a company to maximize profit by maximizing wrong? In the view of economics, price is determined between the nitty-gritty of value which customers will get and producers cost. However, in the real world, customers cannot conceive of their actual utility before buying a product (Information asymmetry). Thus, some of companies try to increase their products price by creating unauthentic impression (It can be liken to change a color of cows). In this case, the companies can increase their profit, but a cleft between actual utility and price is reduced. What is the respite? It is customer delight. Thus, change magnitude price without extending the actual utility brings rising short-term profit, but losing customer satisfaction. However, customer satisfaction is the one of important assets for a company, and it brings long-term and sound profit.

Thus, increasing profit is a symptom, not a goal. Good companies increase their profit by extending their customers actual utility. Then rising price (and profit) follows automatically. If so, how can companies extend customers actual utility? Most of all, companies should struggle for finding customers underrepresented needs, and realize it as a new product, or as a new function in an existed product. Those customers are hidden in an existed foodstuff. They buy an existed product because so distant it is better choice. The purpose of a company is leading them from an existed market to Canaan where their needs will be fulfilled. In short, the purpose of a company should redefine as to maximize the gap between... If you want to get a full essay, order it on our website: Ordercustompaper.com

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