Profit Maximisation And Business Behavioural Patterns

Profit Maximisation And Business Behavioural Patterns 1) Every business holds profit maximisation in high regards but profit maximisation does not always influence a businesss behavioural patterns. Profit maximisation is the process in which a company aims to have the best output and price levels, so that the business can receive the highest rate of return. Through this method one cannot explain business behaviour or managerial priorities, but there are a few managerial theories that can. One is the agency theory and the second is the organisation theory. The agency theory is a theory showing the relationship between agents of a company and the company managers. It is used to solve the conflicts between the two, and to unite their interests for the company. Agency theory argues that when there is uncertainty or lack of confidence amongst agents or restriction of information in a company then two agency problems occur. One is called moral hazard and the other is named adverse selection. Moral Hazard is where the company manager does not believe that the agent has fully put 100% effort into their work. Adverse selection is where the company manager does not believe that the agent fully has the ability to perform their work to the highest level. The difficulties and complications of moral hazard and adverse selection mean that fixed wage contracts are not the best way to set up good relationships between company managers and agents. An agent may not like the fixed wage and may use it to be lazy in his work because his compensation will be no different, no matter his standard of work. The provision of ownership rights reduces the incentive for agents adverse selection and moral hazard since it makes their compensation dependent on their performance (Jensen, 1983). The other managerial theory is the organisation theory. This theory refers to those who want to get the best value out of a company. These people need to know how to achieve this goal and also they will need to monitor and control performance to understand how to achieve results by structuring activities and planning. In using this theory people view a company as a firm trying to attain maximizing profits. It does not take notice of the possibility of negative relationships between owners, managers and employees. Organization theory sort of came into being due to competition being so focused on that there was a lack of recognition of other goals in organisation and organisation theory became prominent due to its reaction against such ideas. It was necessary to understand behaviour which seemed to be irrational. The idea that profit maximization is the only goal of the firm and that it explains business behaviour is not accurate at all. Agency theory has shown us that firms may not take part in profit maximizing behaviours due to negative relations between owners and managers. As such it is unlikely that we will ever see profit maximisation even if there were unanimous views amongst owner, managers and employees. If we compare the business behaviour of owner-managed and professionally managed companies we can see that, against the agency theory, professionally managed firms are more likely than not to engage in profit-maximisation. In conclusion, the validity of the statement that since ownership no longer implies control, business behaviour and managerial priorities cannot be explained on the assumption of profit maximisation is valid. Due to several different theories, firms/companies behaviour in business can depend on inter-business relationships, profit maximisation, performance control, activity structuring, etc and profit maximisation alone cannot show this. 2) It is not hard to see that if consumers start to go to smaller and cheaper chains of good producers that it will have a negative impact on larger chains. But using oligopoly pricing theories I will discuss the impact of consumers change of choice and set out the long and short run reactions of the larger chains. An oligopoly is a market dominated by a few large suppliers. The degree of market concentration is very high. Firms within an oligopoly produce branded products, such as nestle, Kelloggs etc and there are also barriers to entry. Also within an oligopolistic market is interdependence between firms, i.e. each firm takes into account the lreactions of competing firms when they are making pricing decisions. As consumers have decreased income due to the recession the popularity of chains such as Aldi and Lidl increased dramatically. As such Tesco and Sainsburys have made efforts to outclass Aldi and Lidl. MICROECONOMICS ESSAY 2 ANTHONY STADDON 000457496 PAGE 3 Due to their small size, Aldi and Lidl are not seen up at the top with companies such as Tesco Sainsburys and Asda and their foreign status means that within the UK they are not monitored nearly as much as if they were local domestic companies. They are increasing popularity due to their cheap goods.. The way in which places such as Aldi and Lidl differ from larger chains is that instead of selling masses of different items that the larger supermarkets like Tesco sell, they sell a limited range. Also instead producing different brands of one item they offer just one. The large volumes that they should shift by selling just one brand means that they can sell them at very low prices. In the short term, companies such as Tesco and Sainsbury would most likely drop their prices on their goods to compete with the smaller stores. However this might have a negative effect on them because they could lose money in doing this and still not regain the customers that have changed to Aldi or Lidl. Though in the short term, they could make vast profit in small time spaces even if it doesnt last. For example, if Tesco, made offers on turkey around Christmas to battle that of Lidls pricing and they were able to sell turkeys at lower prices, then for a short period of time, ( the Christmas period), consumers would go to Tescos. Alas though, as soon as it is no longer Christmas, then the consumers would return to Lidl to continue on their cheap grocery shopping. Aside from festive occasions, Tesco could make little offers to compete with Lidl and Aldi throughout the year, and still make a little profit over the smaller chains. To compete in the long-term, the larger chains reactions are going to have to be a lot more inventive and cunning. They will have to invent systems that allow them to sell goods all year round at low enough prices to beat the smaller chains. For example, Tesco brought about cash savers to compete with Lidl and Aldi in their prices. This system has resulted in the price slashing of thousands of goods and it is not a short term thing. Tesco intent to keep it and use it to muscle the smaller chains out. 3) Pareto efficiency is the concept of when one person cannot not be made better off or has a better position without making someone else worse off. A big problem that economics has to deal with is allocation of resources. Allocation of resources is when resources are distributed among producers and consumers. But to efficiently allocate them one must take into account the cost to attain the resources, to process them and how much of the resource there is to use. Pareto efficiency may provide a weak method for comparing economic outcomes, but it is an important method. Its a weak method due to the fact that there may be several efficient situations in an economy and this method does not help us choose between them. An example would be that two people are walking along a street when they see on the ground a ten pound note. If one of them picked it up and kept it, or the other person picked it up and kept it, or if one of them picked it up and gave it to the other person, then these would all be efficient outcomes. The fact that neither of them gains from finding the bill is not the point but they avoid the inefficient outcome of not picking up the tenner and keeping it.

Free Essay on Whartons Ethan Frome: Symbols and Symbolism :: Ethan Frome Essays

Symbolism in Ethan Frome Ethan Frome, the classic novel written by Edith Wharton contains a great amount of symbolism.   The symbolism allows the characters to express themselves more clearly to the reader.   It brings incidents and personalities together in meaning.   The story’s symbolic events is what pulls characters together in time of need.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Starkfield Massachusetts is a boring cold farm town.   People become very ill there from the terribly harsh winters.   Winter greatly affects the actions and behaviors of the characters.   No quote better describes the harsh winters of Starkfield, and the effect that it had on the townspeople, than the following: When I had been there a little longer, and had seen this phase of crystal clearness followed buy long stretches of sunless cold; when the storms of February had pitched their white tents about the devoted village and the wild cavalry of March winds had charged down o their support; I began to understand why Starkfield emerged from its six months’ siege like a starved garrison capitulating without quarter (7).   Another truly symbolic point of the story is the Elm tree.   The Elm tree symbolizes the end and the escape of two lives.   Even though Mattie an Ethan were not killed by the sled crash, that was their purpose.   The Elm tree also symbolizes strength and courage.   After the crash, the Elm tree was still standing, while Ethan and Mattie were terribly injured.   If Ethan was a stronger person he would not have crashed into the tree with Mattie.   He would have had the strength to say â€Å"no† in the first place.   Zeena who was once a hypochondriac, recovered, and now she takes care of Mattie and Ethan. â€Å"It was a miracle, considering how sick she was-but she seemed to be raised right up just when the call came to her.† (131)   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   The incident with the red dish is the most symbolic event in the story.   The red dish was a wedding present given to Zeena by one of her relatives.   When the red dish broke, it symbolized the breaking of Ethan’s heart when he found out that Zeena wanted Mattie to leave.   Zeena never used the dish, she kept it in the closet.   One day when Zeena went to get her medicine, she discovered that dish was broken, and that someone attempted to glue it back together.

Exteriority and reliable Essay

Emotions are plucked but there is an almost neurotic and compulsive intentionality behind Tristan which seeks out order in some area of spacious mystery and an almost awesome integrity. As juries have long known that beliefs derived from feelings or sentiment do not in many instances align with what is best supported on rational or scientific foundations of consensus. One’s epistemology of truth and falsehood becomes very much confused and ambiguously mixed that a dazed submission often results which is eminently forgetful as it satisfies promptings of a Freudian libido. Instead of being so concerned with exteriority and reliable or even useful reference modern compositions like Wagner’s Tristan advance possibilities of shielding the ego from the sadistic damage it does to itself by acknowledging the strong and permanent tendency of the ego to seek out satisfying ends and products whenever possible. Even if such things may be mere scatterings of imagined delusions and derived fantasies. Wagner is involved very much with refashioning the world through his conceptual and audible art. Instead of adhering to the World he attempts to exert artistic agency in changing such a world. There is a Marxian spirit behind Wagner as it resolves the problem presented by the issue of construction by thoroughly embracing dilemmas of construction and seeking to master it so that a sense of adequacy can be sustained in a way that is far too perfect. As it is far too perfect is far from simply adequate but is at times quite sublimely pristine in its ability to deliver a kind of pleasurable release and warm gratification that exhibits much to be desired. Nature becomes a warm, maternal figure that pleases infinitely and conjures up procedural joys and swift absolutions of intoxication. The unity once ascribed to the natural is exploited by Wagner’s romantic sensibility as his art achieves a kind of sanctioned sacredness so much so that Coleridge thoroughly condemned attempts to betray such art by dividing it. When Robert Morgan writes of Tristan he points out that â€Å"the Prelude is in constant transformation-always evolving, as if reaching after some unattainable goal, striving at every moment to become something other than it is. Conventional formal analysis appears to be of little value. Focused upon thematic and tonal correspondences, its aim to articulate musical events into discrete segments, distinguishing them by content and function (expository, developmental, etc. ) and organizing them into larger, balanced architectonic patterns, seems antithetical to the very nature of the score. †(69) As the score seems to constantly evolving as it is constantly compromising its layered developments with enticements of harmony and resolution, it’s dangerous to classify Tristan as a case of perpetual striving. Although Morgan asserts that â€Å"Tristan,† does little to offer anything â€Å"in the way of confirmation, reconciliation, or balance,† and instead â€Å"appears to chart a unique and seemingly wayward course,† because he does engage formal analysis as an explanatory instrument quite well it is evidently not true that â€Å"Tristan† is really so individuated or idiosyncratic that it resists formalizations or even more modest theorizations. (69) As Morgan notes in his formal analysis, there is a centripetal aspect to Wagner’s â€Å"Tristan† where, retaining â€Å"the circular image, cycle 1 traces the circle’s complete circumference, while cycles 2-7 loop back and retrace continuous portions of it. Especially notable is the highly self-reflexive nature of the process: this is music that feeds upon itself, reusing the same structural units again and again. †(76) Consequently, there are potentially rewarding and influential interpretation possibilities that can be formalized in a sociological sense, on interconnections between yielding and possessing structural units that are spatially bound and engaged only so much as they are formulated in a kind of imposed fixity. What formalism is grounded on it is a firm belief in universals, not in the mechanics that exist as conventions but are so only because people believe enough to follow by them to create a technical and adequate language within a language for the task at hand. Morgan, by insisting on relatively narrow avenues of evaluation and fixing his acceptance or dismissal on the conventional rather than the essential is really being unfair to the very tendency towards taking tradition serious and believing very much in universals that allow for stimulating simultaneous dialogue between time, space, class, and culture.

An Annotation of Emily Dickinsons I Heard a Fly Buzz...

An Annotation of Emily Dickinsons I Heard a Fly Buzz When I Died Emily Dickinsons poem I Heard a Fly Buzz When I Died is centralized on the events of death and is spoken through the voice of the dying person. The poem explores both the meaning of life and death through the speaker and the significant incidents at the time of near death that the speaker notices. Many of Dickinsons poems contain a theme of death that searches to find meaning and the ability to cope with the inevitable. This poem is no exception to this traditional Dickinson theme; however its unusual comparisons and language about death set it apart from how one would view a typically tragic event. I Heard a Fly Buzz When I Died by Emily Dickinson I heard a†¦show more content†¦One would assume that this event is being accepted into heaven or meeting God. The stillness signifies both the nearly deceased speaker and the people in the room. They await the death completely still out of respect and fear of death. The second stanza discusses the state of mind of those waiting by the deathbed of the speaker. They have obviously been crying by the suggestion that their eyes had wrung them dry. Through this description that they have stopped their weeping it is implied that they have now accepted the death of the speaker. In the second line of this stanza, the people are holding their breath for that last Onset - when the King be witnessed. The King is probably God in this context and they are all awaiting his entering the room to take the soul of the speaker. The word onset as defined in Websters Dictionary is a setting out; start; beginning. This suggests that the death of the speaker is a beginning of an eternal life in heaven and not necessarily just an end to mortal life. Everyone in the room is expectant of the presence of God to carry the speaker to the this celestial afterlife. The focus is returned to the speaker in the third stanza where it says I willed my Keepsakes. These keepsakes could be material goods that the speaker collected during life. There will be no use for these goods in heaven so this line discusses the