The document discusses various objectives and theories of business firms. It outlines that while profit is often seen as the main objective, there are debates around how to define and measure profit. Alternative theories suggest managers may pursue objectives like sales revenue maximization, growth rate maximization, or satisficing behavior. The document also examines debates around profit maximization versus reasonable profit targets and standards.
The document discusses various objectives of business firms beyond pure profit maximization. It outlines theories that firms may maximize sales revenue, growth rate, or managerial utility instead of profits. Alternative hypotheses proposed include Baumol's sales maximization, Marris' growth rate maximization, and Williamson's managerial utility maximization. The document also discusses maintaining reasonable profits as an objective to prevent entry of new competitors and maintain public image rather than strictly maximizing profits.
This document provides an overview of topics related to entrepreneurial finance and venture capital deals. It includes discussions on how VCs evaluate deals and funding new ventures. Several VCs discuss what they look for in opportunities, including big markets, strong teams, and developed products. The document also covers note on valuation of deals, including using a tool called SpiffyCalc to calculate post-money valuation. Special considerations for valuations like employee stock options and preference shares are also addressed.
White Paper - Selling in the New Normal: For Organizations with Complex Sales...Selling to Zebras, LLC
Still waiting for the economy and business opportunities to get back to normal? Change is Required to Survive! In the “New Normal” complex sales organizations have learned that their best efforts and previous approach to selling customers in complex sales cycles no longer work; sales levels, margins and average deals sizes are down and sales cycles are longer with many ending in non-decision. Jeff Koser describe the necessary components to be successful in the New Normal.
Reasons for small business outsourcingIO Marketing
Outsourcing involves contracting professional services from outside companies to meet business needs. Small businesses outsource for cost reduction, avoiding capital costs, and accessing resources. Modern outsourcing is a business strategy that allows focusing on core competencies and technology. Common outsourced services include call centers, which are often located in developing countries like India, the Philippines, and China. Outsourcing provides benefits like improved customer service and cost savings but also risks like security threats and loss of control over dependent vendors.
This document discusses various types of corporate actions and provides details on dividends. It defines corporate actions as events that materially impact a company's shareholders or bondholders. Different types of corporate actions covered include dividends, bonus issues, rights issues, mergers and acquisitions, spin-offs, and buybacks. Dividends are defined as a share of company profits distributed to shareholders. There are three types of dividends: cash dividends, stock dividends, and property dividends. The objectives of dividends are to earn profits for shareholders and distribute some profits while reinvesting others in the business. Accounting treatment requires dividends be declared from profits and reduces profits by the dividend amount.
Profit maximization involves adjusting factors like production costs, sale prices, and output levels to maximize a company's returns. There are two main methods: marginal cost-marginal revenue and total cost-total revenue. Sales maximization aims to generate as much revenue as possible in the short-term, while profit maximization focuses on long-term net income and viability. While revenue does not necessarily mean profits, profit maximization maintains reasonable profit margins over time and positions the business for long-term success by balancing sales growth and value perception. The risks of prioritizing sales include restricting a company's ability to maximize profits in the long run if sales objectives are mismanaged.
The document summarizes a business owner symposium that provided information to help business owners make wise financial decisions. It covered topics like succession planning, financial planning considerations, business valuation, maximizing business value, and exit strategies. 59% of business owners do not have a succession plan. Financial planning should determine retirement needs and compare them to current business value. Business valuation methods were discussed. Buyers prefer businesses with growth, profitability, sustainability, and low risk. The event helped owners understand how to make their business sellable and exit options.
The document discusses various objectives of business firms beyond pure profit maximization. It outlines theories that firms may maximize sales revenue, growth rate, or managerial utility instead of profits. Alternative hypotheses proposed include Baumol's sales maximization, Marris' growth rate maximization, and Williamson's managerial utility maximization. The document also discusses maintaining reasonable profits as an objective to prevent entry of new competitors and maintain public image rather than strictly maximizing profits.
This document provides an overview of topics related to entrepreneurial finance and venture capital deals. It includes discussions on how VCs evaluate deals and funding new ventures. Several VCs discuss what they look for in opportunities, including big markets, strong teams, and developed products. The document also covers note on valuation of deals, including using a tool called SpiffyCalc to calculate post-money valuation. Special considerations for valuations like employee stock options and preference shares are also addressed.
White Paper - Selling in the New Normal: For Organizations with Complex Sales...Selling to Zebras, LLC
Still waiting for the economy and business opportunities to get back to normal? Change is Required to Survive! In the “New Normal” complex sales organizations have learned that their best efforts and previous approach to selling customers in complex sales cycles no longer work; sales levels, margins and average deals sizes are down and sales cycles are longer with many ending in non-decision. Jeff Koser describe the necessary components to be successful in the New Normal.
Reasons for small business outsourcingIO Marketing
Outsourcing involves contracting professional services from outside companies to meet business needs. Small businesses outsource for cost reduction, avoiding capital costs, and accessing resources. Modern outsourcing is a business strategy that allows focusing on core competencies and technology. Common outsourced services include call centers, which are often located in developing countries like India, the Philippines, and China. Outsourcing provides benefits like improved customer service and cost savings but also risks like security threats and loss of control over dependent vendors.
This document discusses various types of corporate actions and provides details on dividends. It defines corporate actions as events that materially impact a company's shareholders or bondholders. Different types of corporate actions covered include dividends, bonus issues, rights issues, mergers and acquisitions, spin-offs, and buybacks. Dividends are defined as a share of company profits distributed to shareholders. There are three types of dividends: cash dividends, stock dividends, and property dividends. The objectives of dividends are to earn profits for shareholders and distribute some profits while reinvesting others in the business. Accounting treatment requires dividends be declared from profits and reduces profits by the dividend amount.
Profit maximization involves adjusting factors like production costs, sale prices, and output levels to maximize a company's returns. There are two main methods: marginal cost-marginal revenue and total cost-total revenue. Sales maximization aims to generate as much revenue as possible in the short-term, while profit maximization focuses on long-term net income and viability. While revenue does not necessarily mean profits, profit maximization maintains reasonable profit margins over time and positions the business for long-term success by balancing sales growth and value perception. The risks of prioritizing sales include restricting a company's ability to maximize profits in the long run if sales objectives are mismanaged.
The document summarizes a business owner symposium that provided information to help business owners make wise financial decisions. It covered topics like succession planning, financial planning considerations, business valuation, maximizing business value, and exit strategies. 59% of business owners do not have a succession plan. Financial planning should determine retirement needs and compare them to current business value. Business valuation methods were discussed. Buyers prefer businesses with growth, profitability, sustainability, and low risk. The event helped owners understand how to make their business sellable and exit options.
Macro Economics
For downloading this contact- bikashkumar.bk100@gmail.com
Prepared by Students of University of Rajshahi
Afridi Hasan
Shahidul Islam
Aminul Islam Milon
Md. Maznur Rahman
Abdullah Al Mamon
The group presentation covers various topics related to business strategy including the goals and values of a firm, its capabilities and structure, industry environment, strategy as a quest for value, performance analysis, corporate social responsibility, and real options. It discusses how firms can create value for customers and stakeholders through their products and operations while also maximizing long-term profit and shareholder value. It emphasizes the importance of both financial and non-financial factors for business success over time.
The document discusses three theories of managerialism: Baumol's model of sales revenue maximization, Marris's theory of the managerial enterprise, and Williamson's theory of managerial discretion. Baumol's model suggests that managers pursue sales maximization rather than profit maximization in order to enhance their own utility and prestige. Marris's theory proposes that managers and owners have different goals, but both seek to maximize the long-run growth rate of the firm. Williamson's theory argues that managers use their discretion to maximize their own utility rather than owners' profits, while still ensuring a minimum level of profit to maintain job security.
This document provides an overview of financial management. It defines financial management as the determination, acquisition, allocation and utilization of financial sources with the aim of achieving particular goals or objectives. Financial management involves investment decisions about what assets a company should hold, financing decisions about how the company will pay for investments, and dividend decisions about how to allocate profits. The objectives of financial management are typically described as maximizing profits, returns, and shareholder wealth. Financial decisions are influenced by both microeconomic factors related to a company and macroeconomic factors in the broader economy.
Stepping into a role which requires business finance knowledge? Here is a short guide offering advice, tools, and expertise that you will need to equip yourself with to be successful. Check out our Diploma in Business Finance for more.
7 Steps to Maximize the Value of Your BusinessCBIZ, Inc.
This document outlines seven core principles for business owners to maximize the value of their business during its operation and upon sale. It discusses building a strong management team, diversifying customers, maintaining quality financials, developing proprietary products/services, focusing on profitability, having a business plan, and seeking professional advisors. It also covers how these principles influence valuation multiples and different transaction structures like strategic sales and private equity-backed recapitalizations.
Theory of the Firm
1. The document discusses several theories of the firm including the economic theory of profit maximization, behavioral theories such as Simon's satisficing model and Cyert and March's model, and alternative objectives like sales maximization. 2. It also explains key concepts like the firm, industry, and market, and compares accounting profit versus economic profit. 3. The theories aim to explain how firms make decisions and set objectives in different market structures under conditions of uncertainty.
This document provides an introduction to financial management. It discusses that finance uses accounting information together with other information to make decisions that affect a firm's market value. There are three primary decision areas in finance: investment decisions, financing decisions, and dividend decisions. The goal of a firm should be to maximize stock price in order to maximize owners' wealth. Important concepts in finance include focusing on market values rather than book values and cash flows rather than accounting income.
The valuation is an essential part of any investment, we provided basics of thinking and calculations. It was presented in our meetup group, it can be used as referenced for future study.
The document discusses the nature and objectives of financial management. It explains that the basic objectives are maintenance of liquid assets and profit maximization, while other objectives include protecting liquidity and solvency, utilizing resources effectively, and ensuring fair returns. Profit maximization aims to evaluate all decisions based on their impact on profits. However, wealth maximization is now considered a more modern approach that focuses on maximizing shareholder value over the long run by considering factors like risk, quality, and time value of money. The key difference between profit and wealth maximization is that profit focuses on short-term earnings while wealth focuses on increasing overall business value over time.
- Baumol's theory of sales maximization proposes that managers primarily aim to maximize sales revenue rather than profit.
- The static model of sales maximization assumes a single time period horizon and that firms will produce up to the point where marginal revenue equals marginal cost, even if this leads to profits below the minimum acceptable level, in order to maximize sales.
- The model is extended to include advertising, suggesting that sales-maximizing firms will spend more on advertising than profit-maximizing firms to further increase sales revenue.
This document discusses putting a value on a business for succession planning purposes. It notes that up to 70% of business owners will retire by 2020 and 50% are unprepared for succession. There are benefits to planning a sale well in advance. Business value is based on anticipated income, risk, and assets. Common buyers are competitors, financial buyers, employees, and family. Valuation approaches include assets, market, and earnings/cash flow. Maintainable earnings, selection of an earnings multiple, and redundant assets are key parts of the earnings approach. Factors that increase or decrease value are also outlined. Stern Cohen Valuations assists with business valuations for various purposes including sales and tax planning.
The document provides guidance on developing a business plan for hedge fund managers. It outlines the major components that should be included in a business plan such as the vision, management team, vendor partners, financial statements, and market analysis. The purpose of drafting a business plan is to explain the business to potential investors and to ensure the founders understand what they are undertaking.
This document provides an overview of Hofer's matrices and directional policy matrices, which are tools used in business portfolio analysis. Hofer's matrices analyze a company's strategic business units based on their competitive position and stage of evolution. Directional policy matrices assess business units based on their market attractiveness and competitive strength to determine investment strategies. The document discusses the models' benefits and limitations, as well as how they can be used to evaluate strategic options and guide resource allocation across a company's business portfolio.
This document discusses viewing employees as valuable human assets from an investment perspective. It states that effective organizations recognize that employees have value, just as physical and capital assets do, and that employees can provide a sustainable competitive advantage when appropriate policies and programs are applied to increase their value. Employees provide value through their technical knowledge, ability to learn and grow, decision-making capabilities, motivation, commitment, and teamwork. Viewing human resources from an investment perspective means determining how best to invest in people by considering costs and ensuring investments create competitive advantages that cannot be easily duplicated. Organizations must have an appropriate, integrated and strategy-consistent approach to maximize returns on their investment in human capital.
The document discusses corporate governance in India. It provides definitions and overviews of corporate governance, outlines the roles and responsibilities of directors, and discusses topics like disclosures, transparency, and examples of best practices. It also gives a brief history of corporate governance development in India, including key reports and regulatory changes. Board meeting frequency and composition requirements are outlined. In summary, the document covers definitions, history, and guidelines related to corporate governance for Indian companies.
Valuation of Goodwill (12th commerce / Management Accounting)Yamini Kahaliya
The document discusses goodwill, including its meaning, characteristics, factors affecting it, methods of valuation, and provides an example valuation. Goodwill represents the reputation and customer satisfaction that leads to higher profits. It is an intangible asset that is valued using methods like the average profits method, super profits method, or capitalization method. For example, goodwill of a firm was valued at three years' purchase of the average profits of the last five years, which was calculated to be ₹36,000, resulting in a goodwill value of ₹1,31,200.
The document discusses the role and responsibilities of a managerial economist in business. It covers topics such as market research, production scheduling, capital budgeting, minimizing costs, and advising on issues like foreign exchange. It also examines the relationship between managerial economics and other business functions/disciplines such as economics, statistics, mathematics, accounting, and operations research. Some key principles of managerial economics covered include opportunity cost, incremental cost, time perspective, discounting, and the equi-marginal principle.
This document provides notes on business finance concepts. Some key points include:
1) The sole goal of a business is to make a profit, while other goals like customer satisfaction are means to achieving profitability.
2) Factors that impact the bottom line include revenue, costs, and investments. Cost efficiency is important, not just cutting costs.
3) The balance sheet, income statement, and cash flow statement are fundamental financial reports that show sources and uses of funds.
4) Assumptions should be validated through industry experts, gaining employee buy-in, and understanding what can realistically be influenced.
5) There are seven possible financial impacts of any business decision - increasing sales, cutting costs, etc
How to Build a Module in Odoo 17 Using the Scaffold MethodCeline George
Odoo provides an option for creating a module by using a single line command. By using this command the user can make a whole structure of a module. It is very easy for a beginner to make a module. There is no need to make each file manually. This slide will show how to create a module using the scaffold method.
हिंदी वर्णमाला पीपीटी, hindi alphabet PPT presentation, hindi varnamala PPT, Hindi Varnamala pdf, हिंदी स्वर, हिंदी व्यंजन, sikhiye hindi varnmala, dr. mulla adam ali, hindi language and literature, hindi alphabet with drawing, hindi alphabet pdf, hindi varnamala for childrens, hindi language, hindi varnamala practice for kids, https://www.drmullaadamali.com
Macro Economics
For downloading this contact- bikashkumar.bk100@gmail.com
Prepared by Students of University of Rajshahi
Afridi Hasan
Shahidul Islam
Aminul Islam Milon
Md. Maznur Rahman
Abdullah Al Mamon
The group presentation covers various topics related to business strategy including the goals and values of a firm, its capabilities and structure, industry environment, strategy as a quest for value, performance analysis, corporate social responsibility, and real options. It discusses how firms can create value for customers and stakeholders through their products and operations while also maximizing long-term profit and shareholder value. It emphasizes the importance of both financial and non-financial factors for business success over time.
The document discusses three theories of managerialism: Baumol's model of sales revenue maximization, Marris's theory of the managerial enterprise, and Williamson's theory of managerial discretion. Baumol's model suggests that managers pursue sales maximization rather than profit maximization in order to enhance their own utility and prestige. Marris's theory proposes that managers and owners have different goals, but both seek to maximize the long-run growth rate of the firm. Williamson's theory argues that managers use their discretion to maximize their own utility rather than owners' profits, while still ensuring a minimum level of profit to maintain job security.
This document provides an overview of financial management. It defines financial management as the determination, acquisition, allocation and utilization of financial sources with the aim of achieving particular goals or objectives. Financial management involves investment decisions about what assets a company should hold, financing decisions about how the company will pay for investments, and dividend decisions about how to allocate profits. The objectives of financial management are typically described as maximizing profits, returns, and shareholder wealth. Financial decisions are influenced by both microeconomic factors related to a company and macroeconomic factors in the broader economy.
Stepping into a role which requires business finance knowledge? Here is a short guide offering advice, tools, and expertise that you will need to equip yourself with to be successful. Check out our Diploma in Business Finance for more.
7 Steps to Maximize the Value of Your BusinessCBIZ, Inc.
This document outlines seven core principles for business owners to maximize the value of their business during its operation and upon sale. It discusses building a strong management team, diversifying customers, maintaining quality financials, developing proprietary products/services, focusing on profitability, having a business plan, and seeking professional advisors. It also covers how these principles influence valuation multiples and different transaction structures like strategic sales and private equity-backed recapitalizations.
Theory of the Firm
1. The document discusses several theories of the firm including the economic theory of profit maximization, behavioral theories such as Simon's satisficing model and Cyert and March's model, and alternative objectives like sales maximization. 2. It also explains key concepts like the firm, industry, and market, and compares accounting profit versus economic profit. 3. The theories aim to explain how firms make decisions and set objectives in different market structures under conditions of uncertainty.
This document provides an introduction to financial management. It discusses that finance uses accounting information together with other information to make decisions that affect a firm's market value. There are three primary decision areas in finance: investment decisions, financing decisions, and dividend decisions. The goal of a firm should be to maximize stock price in order to maximize owners' wealth. Important concepts in finance include focusing on market values rather than book values and cash flows rather than accounting income.
The valuation is an essential part of any investment, we provided basics of thinking and calculations. It was presented in our meetup group, it can be used as referenced for future study.
The document discusses the nature and objectives of financial management. It explains that the basic objectives are maintenance of liquid assets and profit maximization, while other objectives include protecting liquidity and solvency, utilizing resources effectively, and ensuring fair returns. Profit maximization aims to evaluate all decisions based on their impact on profits. However, wealth maximization is now considered a more modern approach that focuses on maximizing shareholder value over the long run by considering factors like risk, quality, and time value of money. The key difference between profit and wealth maximization is that profit focuses on short-term earnings while wealth focuses on increasing overall business value over time.
- Baumol's theory of sales maximization proposes that managers primarily aim to maximize sales revenue rather than profit.
- The static model of sales maximization assumes a single time period horizon and that firms will produce up to the point where marginal revenue equals marginal cost, even if this leads to profits below the minimum acceptable level, in order to maximize sales.
- The model is extended to include advertising, suggesting that sales-maximizing firms will spend more on advertising than profit-maximizing firms to further increase sales revenue.
This document discusses putting a value on a business for succession planning purposes. It notes that up to 70% of business owners will retire by 2020 and 50% are unprepared for succession. There are benefits to planning a sale well in advance. Business value is based on anticipated income, risk, and assets. Common buyers are competitors, financial buyers, employees, and family. Valuation approaches include assets, market, and earnings/cash flow. Maintainable earnings, selection of an earnings multiple, and redundant assets are key parts of the earnings approach. Factors that increase or decrease value are also outlined. Stern Cohen Valuations assists with business valuations for various purposes including sales and tax planning.
The document provides guidance on developing a business plan for hedge fund managers. It outlines the major components that should be included in a business plan such as the vision, management team, vendor partners, financial statements, and market analysis. The purpose of drafting a business plan is to explain the business to potential investors and to ensure the founders understand what they are undertaking.
This document provides an overview of Hofer's matrices and directional policy matrices, which are tools used in business portfolio analysis. Hofer's matrices analyze a company's strategic business units based on their competitive position and stage of evolution. Directional policy matrices assess business units based on their market attractiveness and competitive strength to determine investment strategies. The document discusses the models' benefits and limitations, as well as how they can be used to evaluate strategic options and guide resource allocation across a company's business portfolio.
This document discusses viewing employees as valuable human assets from an investment perspective. It states that effective organizations recognize that employees have value, just as physical and capital assets do, and that employees can provide a sustainable competitive advantage when appropriate policies and programs are applied to increase their value. Employees provide value through their technical knowledge, ability to learn and grow, decision-making capabilities, motivation, commitment, and teamwork. Viewing human resources from an investment perspective means determining how best to invest in people by considering costs and ensuring investments create competitive advantages that cannot be easily duplicated. Organizations must have an appropriate, integrated and strategy-consistent approach to maximize returns on their investment in human capital.
The document discusses corporate governance in India. It provides definitions and overviews of corporate governance, outlines the roles and responsibilities of directors, and discusses topics like disclosures, transparency, and examples of best practices. It also gives a brief history of corporate governance development in India, including key reports and regulatory changes. Board meeting frequency and composition requirements are outlined. In summary, the document covers definitions, history, and guidelines related to corporate governance for Indian companies.
Valuation of Goodwill (12th commerce / Management Accounting)Yamini Kahaliya
The document discusses goodwill, including its meaning, characteristics, factors affecting it, methods of valuation, and provides an example valuation. Goodwill represents the reputation and customer satisfaction that leads to higher profits. It is an intangible asset that is valued using methods like the average profits method, super profits method, or capitalization method. For example, goodwill of a firm was valued at three years' purchase of the average profits of the last five years, which was calculated to be ₹36,000, resulting in a goodwill value of ₹1,31,200.
The document discusses the role and responsibilities of a managerial economist in business. It covers topics such as market research, production scheduling, capital budgeting, minimizing costs, and advising on issues like foreign exchange. It also examines the relationship between managerial economics and other business functions/disciplines such as economics, statistics, mathematics, accounting, and operations research. Some key principles of managerial economics covered include opportunity cost, incremental cost, time perspective, discounting, and the equi-marginal principle.
This document provides notes on business finance concepts. Some key points include:
1) The sole goal of a business is to make a profit, while other goals like customer satisfaction are means to achieving profitability.
2) Factors that impact the bottom line include revenue, costs, and investments. Cost efficiency is important, not just cutting costs.
3) The balance sheet, income statement, and cash flow statement are fundamental financial reports that show sources and uses of funds.
4) Assumptions should be validated through industry experts, gaining employee buy-in, and understanding what can realistically be influenced.
5) There are seven possible financial impacts of any business decision - increasing sales, cutting costs, etc
How to Build a Module in Odoo 17 Using the Scaffold MethodCeline George
Odoo provides an option for creating a module by using a single line command. By using this command the user can make a whole structure of a module. It is very easy for a beginner to make a module. There is no need to make each file manually. This slide will show how to create a module using the scaffold method.
हिंदी वर्णमाला पीपीटी, hindi alphabet PPT presentation, hindi varnamala PPT, Hindi Varnamala pdf, हिंदी स्वर, हिंदी व्यंजन, sikhiye hindi varnmala, dr. mulla adam ali, hindi language and literature, hindi alphabet with drawing, hindi alphabet pdf, hindi varnamala for childrens, hindi language, hindi varnamala practice for kids, https://www.drmullaadamali.com
Introduction to AI for Nonprofits with Tapp NetworkTechSoup
Dive into the world of AI! Experts Jon Hill and Tareq Monaur will guide you through AI's role in enhancing nonprofit websites and basic marketing strategies, making it easy to understand and apply.
A workshop hosted by the South African Journal of Science aimed at postgraduate students and early career researchers with little or no experience in writing and publishing journal articles.
This slide is special for master students (MIBS & MIFB) in UUM. Also useful for readers who are interested in the topic of contemporary Islamic banking.
The simplified electron and muon model, Oscillating Spacetime: The Foundation...RitikBhardwaj56
Discover the Simplified Electron and Muon Model: A New Wave-Based Approach to Understanding Particles delves into a groundbreaking theory that presents electrons and muons as rotating soliton waves within oscillating spacetime. Geared towards students, researchers, and science buffs, this book breaks down complex ideas into simple explanations. It covers topics such as electron waves, temporal dynamics, and the implications of this model on particle physics. With clear illustrations and easy-to-follow explanations, readers will gain a new outlook on the universe's fundamental nature.
A Strategic Approach: GenAI in EducationPeter Windle
Artificial Intelligence (AI) technologies such as Generative AI, Image Generators and Large Language Models have had a dramatic impact on teaching, learning and assessment over the past 18 months. The most immediate threat AI posed was to Academic Integrity with Higher Education Institutes (HEIs) focusing their efforts on combating the use of GenAI in assessment. Guidelines were developed for staff and students, policies put in place too. Innovative educators have forged paths in the use of Generative AI for teaching, learning and assessments leading to pockets of transformation springing up across HEIs, often with little or no top-down guidance, support or direction.
This Gasta posits a strategic approach to integrating AI into HEIs to prepare staff, students and the curriculum for an evolving world and workplace. We will highlight the advantages of working with these technologies beyond the realm of teaching, learning and assessment by considering prompt engineering skills, industry impact, curriculum changes, and the need for staff upskilling. In contrast, not engaging strategically with Generative AI poses risks, including falling behind peers, missed opportunities and failing to ensure our graduates remain employable. The rapid evolution of AI technologies necessitates a proactive and strategic approach if we are to remain relevant.
How to Manage Your Lost Opportunities in Odoo 17 CRMCeline George
Odoo 17 CRM allows us to track why we lose sales opportunities with "Lost Reasons." This helps analyze our sales process and identify areas for improvement. Here's how to configure lost reasons in Odoo 17 CRM
This presentation was provided by Steph Pollock of The American Psychological Association’s Journals Program, and Damita Snow, of The American Society of Civil Engineers (ASCE), for the initial session of NISO's 2024 Training Series "DEIA in the Scholarly Landscape." Session One: 'Setting Expectations: a DEIA Primer,' was held June 6, 2024.
2. whaT IS aN ORgaNISaTION?
whaT IS aN ORgaNISaTION?
“
“An organisation is a consciously
An organisation is a consciously coordinated
coordinated
social unit
social unit composed of two or more ‘people’ ,that
composed of two or more ‘people’ ,that
function on a relatively continuous basis to
function on a relatively continuous basis to
achieve a common
achieve a common goal or set of goals
goal or set of goals.”
.”
“
“ There is no reason to believe that all businessmen
There is no reason to believe that all businessmen
pursue the same objective.” – Baumol
pursue the same objective.” – Baumol
3. PROFIT aS aN OBJECTIVE OF FIRM
PROFIT aS aN OBJECTIVE OF FIRM
“
“The word profit has different meaning to
The word profit has different meaning to
businessmen, accountants, tax collectors, workers..”
businessmen, accountants, tax collectors, workers..”
- Joel Dean
- Joel Dean
Accounting profit Vs Economic profit
Accounting profit Vs Economic profit
Theories of profit
Theories of profit
- Walker’s theory of profit – as rent of ability
- Walker’s theory of profit – as rent of ability
- Clark’s dynamic theory
- Clark’s dynamic theory
‘
‘ profit is an elusive sum which entrepreneurs grasp
profit is an elusive sum which entrepreneurs grasp
but cannot hold. It slips through their fingers and
but cannot hold. It slips through their fingers and
bestows on all members of the society.’ – J.B.Clark
bestows on all members of the society.’ – J.B.Clark
4. - Hawley’s risk theory – Residual theory of profit
- Hawley’s risk theory – Residual theory of profit
- Knight’s theory of profit – Risk & Uncertainty
- Knight’s theory of profit – Risk & Uncertainty
(A)
(A) Risk
Risk:
: A low probability of an expected outcome (in common)
A low probability of an expected outcome (in common)
From business decision making point of view, risk refers to a
From business decision making point of view, risk refers to a
situation in which a business decision is expected to yield more than
situation in which a business decision is expected to yield more than
one outcome and the probability of each outcome is known to the
one outcome and the probability of each outcome is known to the
decision maker and can be reliably estimated.
decision maker and can be reliably estimated.
(B)
(B) Uncertainty
Uncertainty: It refers to a situation in which there are more than
: It refers to a situation in which there are more than
one outcome of a business decision and the probability of no
one outcome of a business decision and the probability of no
outcome is known or can be meaningfully estimated.
outcome is known or can be meaningfully estimated.
Due to – Lack of Reliable market information
Due to – Lack of Reliable market information
- Inadequate past experience
- Inadequate past experience
- High volatility of market conditions
- High volatility of market conditions
5. - Schumpeter’s innovation theory of profit
- Schumpeter’s innovation theory of profit
- Monopoly profit
- Monopoly profit
PROBlEMS IN PROFIT MEaSUREMENT
PROBlEMS IN PROFIT MEaSUREMENT
- Which profit concept to be used?
- Which profit concept to be used?
- What costs should be & what costs should not be included?
- What costs should be & what costs should not be included?
> Depreciation
> Depreciation
> Capital gains & losses
> Capital gains & losses
> Current Vs Historical costs – Assets; specially inventory –
> Current Vs Historical costs – Assets; specially inventory –
FIFO, LIFO & WAC
FIFO, LIFO & WAC
6. PROFIT MaxIMISaTION aS aN
PROFIT MaxIMISaTION aS aN
OBJECTIVE OF FIRM
OBJECTIVE OF FIRM
- It has never been unambiguously disapproved.
It has never been unambiguously disapproved.
- No alternative hypothesis explains & predicts
No alternative hypothesis explains & predicts
the behaviour of the firms better than this
the behaviour of the firms better than this
theory.
theory.
Conditions for maximising profit
Conditions for maximising profit
-
- Necessary / first order condition:
Necessary / first order condition: MR = MC
MR = MC
-
- Secondary / second order condition:
Secondary / second order condition: The necessary
The necessary
condition must be satisfied under the condition
condition must be satisfied under the condition
of decreasing MR & rising MC
of decreasing MR & rising MC
7.
The defence of profit maximisation:
The defence of profit maximisation:
-
- Profit is indispensable for firm’s survival
Profit is indispensable for firm’s survival
-
- Other objectives’ success is dependent on firm’s
Other objectives’ success is dependent on firm’s
ability to make profit
ability to make profit
- It has got a great predictive power
- It has got a great predictive power
- Profit is a more reliable measure of firm’s
- Profit is a more reliable measure of firm’s
efficiency
efficiency
- Evidence against this objective are not conclusive
- Evidence against this objective are not conclusive
( Hall & Hitch survey)
( Hall & Hitch survey)
- Purpose of traditional theory of value is different
- Purpose of traditional theory of value is different
(Fritz Maclup’s observation)
(Fritz Maclup’s observation)
8.
Controversy over profit maximisation:
Controversy over profit maximisation:
- Separation of ownership & management
- Separation of ownership & management
- Assumption of full knowledge of the market
- Assumption of full knowledge of the market
conditions on the part of firm is questionable.
conditions on the part of firm is questionable.
- Marginality principle is not widely in use.
- Marginality principle is not widely in use.
9. alTERNaTIVE OBJECTIVES OF FIRMS
alTERNaTIVE OBJECTIVES OF FIRMS
B-G-M Hypothesis
B-G-M Hypothesis
- Owner controlled firms have higher profit rates
- Owner controlled firms have higher profit rates
than the manager controlled firms.
than the manager controlled firms.
- The managers have no incentives for profit
- The managers have no incentives for profit
maximisation.
maximisation.
10.
Baumol’s Hypothesis of sales revenue
Baumol’s Hypothesis of sales revenue
maximisation
maximisation
Managers pursue those goals which furthers their
Managers pursue those goals which furthers their
interest.
interest.
- Salary & other management emoluments are more
- Salary & other management emoluments are more
closely related to sales revenue than to profit.
closely related to sales revenue than to profit.
- Banks & other financial institutions look at sales
- Banks & other financial institutions look at sales
revenue for credibility.
revenue for credibility.
- Sales revenue trend is more readily available indicator
- Sales revenue trend is more readily available indicator
of the firm’s performance
of the firm’s performance
- Managers find it difficult to maximise the profit
- Managers find it difficult to maximise the profit
consistently due to changing & challenging conditions.
consistently due to changing & challenging conditions.
-
- Static & Dynamic model
Static & Dynamic model
11.
Marris’s Hypothesis of firm’s growth rate
Marris’s Hypothesis of firm’s growth rate
maximisation
maximisation
“
“Managers try to maximise firm’s
Managers try to maximise firm’s balanced growth
balanced growth
rate
rate subject to managerial & financial constraints.”-
subject to managerial & financial constraints.”-
Robin Marris
Robin Marris
G = G
G = GD
D = G
= GC
C
G
GD
D = Growth rate of demand for firm’s product
= Growth rate of demand for firm’s product
G
GC
C= Growth rate of capital supply to the firm
= Growth rate of capital supply to the firm
Um = f (salary, power, job security, prestige, status..)
Um = f (salary, power, job security, prestige, status..)
Uo = f (output, capital, market share, profit, public
Uo = f (output, capital, market share, profit, public
esteem..)
esteem..)
‘
‘ Size of the firm’
Size of the firm’
12.
Williamson's Hypothesis of maximisation of
Williamson's Hypothesis of maximisation of
managerial utility
managerial utility
‘
‘ Managers seek to maximise their own utility
Managers seek to maximise their own utility
function.’
function.’
U = f (S, M, I
U = f (S, M, ID
D )
)
S = Additional expenditure on staff
S = Additional expenditure on staff
M = Managerial Emoluments
M = Managerial Emoluments
I
ID
D = Discretionary investment
= Discretionary investment
Cyert - March Hypothesis of satisficing
Cyert - March Hypothesis of satisficing
behaviour (Simon’s Hypothesis)
behaviour (Simon’s Hypothesis)
‘
‘ A firm is a coalition of different groups with
A firm is a coalition of different groups with
conflicting goals.’ –
conflicting goals.’ – Aspiration level of the firm
Aspiration level of the firm
13.
Rothschild’s Hypothesis of long run
Rothschild’s Hypothesis of long run
survival & market share goals
survival & market share goals
‘
‘ The primary goal of a firm is long run survival.’
The primary goal of a firm is long run survival.’
Entry prevention & Risk avoidance
Entry prevention & Risk avoidance
Hypothesis
Hypothesis
Motive
Motive :
: a) profit maximisation in the long run
a) profit maximisation in the long run
b) Securing a constant market share
b) Securing a constant market share
c) Avoiding the risk caused by the
c) Avoiding the risk caused by the
unpredictable behaviour of new firms
unpredictable behaviour of new firms
14. A reasonable profit target
A reasonable profit target
Why reasonable profit?
Why reasonable profit?
a) Preventing entry of new firms
a) Preventing entry of new firms
b) Projecting a favourable public image
b) Projecting a favourable public image
c) Restraining trade union demands
c) Restraining trade union demands
d) Maintaining customer goodwill
d) Maintaining customer goodwill
e) Managerial utility function is more preferable
e) Managerial utility function is more preferable
to profit maximisation etc.
to profit maximisation etc.
15.
Standards of reasonable profit
Standards of reasonable profit
-
- Forms of profit standards
Forms of profit standards
a) Aggregate money terms
a) Aggregate money terms
b) Percentage of sales
b) Percentage of sales
c) Percentage of ROI
c) Percentage of ROI
- How much profit is reasonable? - Standards
- How much profit is reasonable? - Standards
a) Capital attracting standard
a) Capital attracting standard
b) ‘ Plough back’ standard
b) ‘ Plough back’ standard
c) Normal earning standards
c) Normal earning standards