Discuss whether the objectives of profit mastication becomes less important than other possible objectives as a firm grows in size. Profit mastication, is where companies aim to at all costs to make as much profit as physically possible. They will do this whilst putting any other objectives on the back b runner. I will look at both large and small companies, this means that I can establish whether o r not size as any effect on the importance of profit mastication.
Firstly large companies, when looking at whether or not they should value profit mastication, we should look at market factors that could influence, the stakeholder priorities. For example what size of market share does the company have, also whet ere or not the company actually likes pen’s. I. E. A large non profit organization: EUNICE, will not be focused on profit mastication. However for the sake of the discussion we will look at the importance, as an organization that aims to make money and considers it their prima objective.
Managerial efficiency, so the organization and structure of the company, m ay mean that they aren’t looking to make profit but aim to maximize sales revenues. Which hell as statistics and
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It means that their company will experience large profits, this is good b cause it will help to increase the value of the company, as it will help to maintain stable stock price which means that the economic press will look upon them favorably, help them gain reputable reputation. So as a result people see them as a steady investment, so will want to invest, and as a result their stock prices will rise, meaning their company will grow. T his also means that