In a paper consisting of three pages management challenges and the major tasks of an organization are examined. Two sources are cited in the bibliography.
Name of Research Paper File: CC6_KSmgmtChall.rtf
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to maximize shareholder value. This is the goal of the corporation, and all other activities ultimately contribute to achieving and maintaining this goal. In the process, management needs
to attend to issues of financial success, marketing, building and maintaining and stable workforce and positively contributing to the communities in which it operates. Maximizing Shareholder Value
This likely is the origin of the notion of the "greedy corporation," but the recent scandals of Enron, Worldcom and others provide clear evidence that equating
this goal with greed is not a valid action. Those scandals eliminated shareholder value rather than positively contributing to it. Rather than
being a greed position, this goal of the corporation is one that helps to ensure its continuity and relevance to its market. Shareholder value will decline if the organization
is managed poorly and if it does not keep pace with - or set trends in - its industry. Maximizing shareholder value requires sound management and dedication to growth
that in turn rewards the organization in the form of increasing market capitalization or positive interest in the case of a private company. Marketing
It was in 1960 that Harvards Theodore Levitt first proclaimed that there is no such thing as a "growth industry," that the goal of any business is to gain
- and then keep - a customer. If the organization will set its primary goal on this measure alone, according to Levitt (1986), then growth and profitability will follow.
Levitt used as his example the railroad industry that failed to recognize itself to be in the transportation industry. As such, it