Academic Essay: Four Burning Contemporary Debates in Business Management

There different controversial in business world. These issues have created two different poles as some of the people of the society are in favour of these issues and some are in opposite views. As the requirement to fulfil the module, I am here to evaluate some controversial issues as the business debate. The issues are: marketing adds more value to share holders than to customers, Organizational goal should supersede individual goals, Government should not intervene into financial operations and Entrepreneurs are born not bred. In the following session, I will go for the presentations of the logics regarding to my position about the focussed issues.

One: Marketing adds more value to share holders than to customers

From the very beginning of the civilization, we can see the existences of the business.  The main and foremost important aim of the business is to produce interest for the owners. For that reason, the main purpose of all types of business activities likes marketing, management and financing mainly functioned for the betterment of the owners (Baker, 2008). So, I support the comment ‘Marketing adds more value to share holders than to customers’. Before presenting my logics regarding my position I will first clarity the marketing, shareholders’ value addition and customer value briefly for the assistance of my logics.

Marketing is the management activities and processes which delivers products or services from the producers to the consumers to satisfy the needs of the customers by removing the knowledge barriers regarding products or services. It includes product design and production, pricing, distribution and promoting.  The ultimate aim of marketing is to generate profit through satisfying the customers’ needs (Baker, 2008).

The shareholders’ value addition is the process of the management of the business to maximise the equity of the share holders within a business through maximization of profit, market value of shares and maximizing the dividends against the investments of the shareholders (Homburg, Sabine & Harley, 2009).

Customers are the buyers of the products of the organizations in exchange of money. They spend money for consuming the utility of the product. The utility or satisfaction which a consumer gets from a product by spending a certain amount of money is the customer value and marketing activities helps to maximise the customer values through its activities (Aaker, 2008).

Now come to the point. The resources all over the world are not equally distributed. Business is the means of human society to ensure the proper distribution of the resources. Business designs the products based on the resources for satisfying the needs of human. To do this business do major functions like: Management, financing, manufacturing, and marketing. Without marketing the all other functions of business is not complete (Homburg, Sabine & Harley, 2009). By the marketing, business presents the product to the prospected customers and makes them buy. By buying this product, customers get value. The marketing shows that which spending will create the maximum value to the customers. The more the marketing better, the more the value addition to the consumers generates. The reason behind it is that by the marketing the consumers can chose the best product from the several options (Homburg, Sabine & Harley, 2009). For example: From the market, a customer can buy the reasonable cell phone by analysing the grace of marketing. But the burning question here that why business do the marketing to satisfy the customer’s needs. Yes! The ultimate aim of the marketing and selling product to the customers to provide them value is to generate profit for the business against the investment to produce and deliver the products to the consumers. The better marketing of the organization develop the large group of customers to deliver values for the purpose to maximise profit (Baker, 2008). The profit comes to the account of organization which creates the additional value to the organizational wealth. The shareholders of the organization are the actual owners of the resources or wealth of the organization. So, maximization of profit by delivering value to the consumers though marketing ultimately maximizes the shareholder’s value. On the other hand, the value marketing activities generates to the customers is lesser than the shareholders (Aaker, 2008). The reason behind it is that the business tries to sale product in a profitable price. To make profit, the business earns more value than they give to the customers. The surplus value goes to the share holders of the organization (Baker, 2008). So, it is clear that marketing adds more value to the shareholders than customers.

Two: Organizational goal should supersede individual goals

Goals are the desired state to achieve. Within the organization, the goals are the important tasks to achieve. Within the organizational work place, there are two types of goals are available. The first one is the goal to achieve the organizational interest and other is to achieve the individual interest (Michel, 2008). The personal desires to achieve within the organization will be declared as the personal and individual goal and the organizational and collaborative desires to achieve are the organizational goals. To the all organizational individuals the organizational goals must be important than the personal goals (Jesson, 2005).

In the previous time the business were mainly based on the domestic market. But in the current time, business has crossed the national borders. By the grace of technology, the organizations within the business world perform their operation globally. Now, the domestic organizations are not domestic organizations as were the part of the global village. For that reason, the all organizations in all countries all over the world within a specific industry compete with each other (Jesson, 2005).  For example: The garments manufacturers of Bangladesh compete with the garments manufacturers all over the world. So, the competition is no more local. It is completely global. That’s why it is very tough to the organizations to consider and cope with the cutthroat competitive global market.

To cope with the highly competitive market environment, it is crucial for every organization to make them fit to sustain in the market. For being successful in that market, the business organizations must be highly concern about the use of the best use of the organizational resources, specially the human resources of the organization. In this way, the organization must produce the group efforts for the achievement of the organizational goals and objectives (Collings, 2004). If the organizations are unable to produce the group efforts to achieve the organizational goals, the organization will no more exist. If the organizations doesn’t exist the individuals will no more used in the organization and the personal goals achievement will be impossible. On the other hand, by the more focus on the management of the organizational goals achievement than the personal or individual goal achievement will provide different opportunities for the organizational people to enrich their personal career (Collings, 2004).  By the focus on the organizational goal, the employees within the organization create group efforts. This group effort helps them to enrich their personal skills and capacities by exchanging experiences and knowledge. This team effort creates the better communication among them to achieve their personal goals (Collings, 2004).

I strongly support that the personal goal without having the organizational goal achieve will not create no value. I will go for an example to make vivid my position. Mr. Jonson I very much personal goal oriented and not interested to produce group effort and co-operation. He works in shop of Tesco. The store is facing the losing growth of sales in case of the inefficiency of the employees. But here, he always touches the personal goals of selling. Other employees within the store are inefficient in case of co-operation. He has the ability to make them improved but he always focus on his goals. Ultimately the store’s goal to sale is missed. The authority decided to shutdown the store. With all other workers, Mr. Johnson lost his Job. So, it is evident that the organizational goal will supersede the organizational goal.

Three: Government should not intervene into financial operations

In the market where the shares, bonds, bills of exchange and other products are sold. It is one of the most important parts of the economy of a country. The good heath of the financial market will provide the better indication to the strong economic position of a country (Joseph, 2000).

I strongly support that the government of country must intervene in the financial market as when the investors will be fully informed and will be free from all the types of fraud and manipulations. If there is no opportunity to breakdown of the management control of a company and no threat to collapse one financial institution lead the possible collapse of the entire market, the financial market work better (Greene, 2011).  These are the problems which are probable to arise from the market but cannot be solved by the individual’s self interest working things out in the market place. To continue the growth and prosperity of a country the growth in the financial market is must. If the market becomes unstable, the investors will be disappeared from the market. On the other hand, the stable market attracts the investors and growth is achieved which significantly impact on the economic growth of the country. For the larger interest of the country, the government must make stable the market as only the interventions from the government can stable the market (Joseph, 2000). That’s why the government interventions in the financial market are necessary. On the other hand, when government does not intervene or regulate the market, the investors will not get the proper information. This is why their decision will not be based on the accurate information but based on rumour and hearsay. This will cause the great loss to the investors. By the regulation of the government, the information will be fully disclosed for the security of the money of the general investors (Greene, 2011).

In the in regulated market, fraud and manipulation rob the money of the investors. This is why the investors become highly discouraged in investment. When they restrain them from investing it harms the entire economy of the country. In this market the destructive activities continues by the development of the miss management (Joseph, 2000). To protect the economy by the protection of the investors’ money, government must make the strict intervention and regulations over the financial market within a country. The risk taking of one brokerage house can harm all the companies within the market which can be protected by the government strict rules and regulations (Greene, 2011). The harmed organization endangers the interests of the clients, employees, vendors, creditors. So, by regulation of the reckless risk taking behaviour of the firm through the intervention, the government can protect the interest of all the stakeholders of the company. For minimizing the harms to others, the better regulations are needed by the financial markets. That’s why the government through the proper intervention must make the different steps for the financial market (Jenkins, 1978).

So, the strong and stable financial market makes the strong economic base and standard position of the country in financial strength. But this stability can be only achieved by the proper regulation of the government. This is why; government should intervene in the financial markets.

Four: Entrepreneurs are born not bred

It is not possible to train a person to be an entrepreneur as it is a spirit which is gifted by born. Through the nurture entrepreneurs cannot be made as it is a by bon nature. Normally, people who are not with the spirit of entrepreneurships give up trying after a couple of failure. But the person with the spirit of entrepreneurship takes dedication, passion and the drive to never give up. When the normal people want to do a business, he/she tries one, two or three times. If he/she fails, they find the new ways to get in. But the entrepreneur is such a personality who never gives up (inspiresme, 2013).

So it is a certain type of personality people have by born. Some people are very much fond of stress free lifestyles. Here, they know what they are going to have in the future. But the entrepreneurs always strive for more in exchange of gruelling journey.  According to Allen Gannett, (2012), for the years we are trying to make the generation of entrepreneurs, but we are not successful. The reason behind it is that the spirit entrepreneurs are not just about understanding business plans and inventory management. It is one type of madness which takes a person to seemingly impossible heights, dictation the law of nature and practically can be broken. According to their research about the matter, he exposed that a survey statistics shows that only one percent of the entrepreneurs believe that education played important role for their entrepreneur development.  On the other hand, 61% believed that the development entrepreneurship is not taught (Gannett,   2012).

At last, I will conclude by saying that, if the entrepreneurs would be created, Bill Gets, Warren Buffet and stave jobs would be duplicated in the recent time. It is not possible. So, it is clear that the entrepreneur’s are not made, they are born.

Conclusion

In the above sections, I have critically discussed the highlighted issues in the business debate. I support that marketing adds more value to share holders than to customers as the ultimate aim of marketing to produce value to the customers for the profit maximization which creates the additional value to the owners or shareholder’s interest. To be survived in current competitive global market, the organizations must focus on the group effort than the personal interests and this is why organizational goal should supersede individual goals. On the other hand, the government should not intervene into financial operations and Entrepreneurs are born not bred.

References

1)     Baker, Michael, (2008). The Strategic Marketing Plan Audit. London: Pearson

2)     Homburg, C., Sabine, K., & Harley, K., (2009). Marketing Management - A Contemporary Perspective. London: Pearson

3)     Aaker, David(2008). Strategic Market Management. London: Pearson

4)     Collings, (2004). Organizational change and management of change. Oxford: Oxford University press

5)     Jesson, (2005). Leadership strategies and application of appropriate leadership strategy to the organization, 3^rd edition. NY: Kangon press

6)     Michel, A., (2008). Impact of organizational culture on change assesses the impact of stakeholder’s ort the change process, 5^th edition.  London, Tomson press.

7)     Jenkins, W., (1978). Policy Analysis: A Political and Organizational Perspective. London: Martin Robertson.

8)     Greene, J. E., (2011). Public Finance: An International Perspective. New Jersey: World Scientific. p. 500.

9)     Joseph E. S., (2000). Economics of the Public Sector, 3rd ed. Norton. London: Pearson

10) Gannett,   Allen, (2012). Entrepreneurs are born. [Available at: http://thenextweb.com/entrepreneur/2012/03/10/entrepreneurs-are-born/]. Accessed: 20-10-1012

11) inspiresme, (2013).  Entrepreneurship: Born or bred? [Available at: http://www.inspiresme.co.uk/starting-a-business/business-ideas/entrepreneurship--born-or-bred-/]. Accessed: 20-10-2013