Zaloguj się

Profit maximization aims to achieve immediate financial gains by reducing costs and increasing revenues. This short-term focus involves aggressive cost-cutting and sales strategies. For example, Amazon initially pursued profit maximization by optimizing operations and rapidly expanding its product range. Although this approach increased short-term profits, it often led to criticisms regarding labor conditions and environmental impacts.

In contrast, wealth maximization aims to increase the overall value of the business over the long term, considering the interests of all stakeholders. This strategy involves investing in innovation, sustainability, and infrastructure, which may not yield immediate profits but may lead to substantial returns over time. For instance, Amazon has invested in renewable energy projects and sustainable packaging to reduce environmental impact and improve social well-being. By focusing on long-term growth and sustainable practices, Amazon seeks to create enduring value for all stakeholders including shareholders.

Profit maximization is primarily managed by operational managers and executives who oversee day-to-day activities and ensure short-term financial targets are met. Wealth maximization is overseen by the board of directors and senior executives, including the CEO and CFO, who formulate long-term strategies and invest in sustainable practices to ensure the company's growth and sustainability.

Tagi
Profit MaximizationWealth MaximizationFinancial GainsCost cuttingRevenue IncreaseStakeholder InterestsLong term GrowthSustainabilityInnovation InvestmentOperational ManagementBoard Of DirectorsEnvironmental Impact

Z rozdziału 1:

article

Now Playing

1.9 : Profit Maximization vs. Wealth Maximization

Introduction to Business Finance

190 Wyświetleń

article

1.1 : Understanding Finance

Introduction to Business Finance

7.7K Wyświetleń

article

1.2 : Areas of Finance

Introduction to Business Finance

325 Wyświetleń

article

1.3 : Introduction to Financial Management

Introduction to Business Finance

2.1K Wyświetleń

article

1.4 : Introduction to Financial Accounting

Introduction to Business Finance

424 Wyświetleń

article

1.5 : Accounting vs. Finance

Introduction to Business Finance

263 Wyświetleń

article

1.6 : Financial Management Decisions

Introduction to Business Finance

2.0K Wyświetleń

article

1.7 : Internal and External Users

Introduction to Business Finance

141 Wyświetleń

article

1.8 : Role of Financial Managers

Introduction to Business Finance

130 Wyświetleń

article

1.10 : Forms of Business Organization

Introduction to Business Finance

652 Wyświetleń

article

1.11 : Sole Proprietorship

Introduction to Business Finance

227 Wyświetleń

article

1.12 : Partnership

Introduction to Business Finance

103 Wyświetleń

article

1.13 : Limited Liability Partnership

Introduction to Business Finance

256 Wyświetleń

article

1.14 : Limited Liability Company

Introduction to Business Finance

99 Wyświetleń

article

1.15 : Corporation

Introduction to Business Finance

116 Wyświetleń

See More

JoVE Logo

Prywatność

Warunki Korzystania

Zasady

Badania

Edukacja

O JoVE

Copyright © 2025 MyJoVE Corporation. Wszelkie prawa zastrzeżone