Business begins with value creation. It is purpose of the business origination to create and deliver the value. The companies who ignore this most important aspect of business, suffer from making losses or losing stakeholders.
Let’s discuss the case of Kerr-Mcgee Corporation, which was formed in 1929. Their mission statement is as follows:
“Create value for shareholders through the energy business”.
In 2006, Kerr-Mcgee was acquired by Anadarko Petroleum, a company which was concern not only about building profit but also the interest of society. This $14 billion oil and gas exploration company’s mission provides a glimpse into the reason, perhaps that’s why they could manage to purchased Kerr-McGee.
The mission statement of Anadarko Petroleum was;
“To deliver a competitive and sustainable rate of return to shareholders by developing, acquiring and exploring for oil and natural gas resources vital to the world’s health and welfare” (Dan , Pontefract ;, 2016).
In this example both companies are dealing in oil and gas industry if we mark this as an exception and understand the case then it is pretty sure that the companies who believe in understanding of keeping stakeholder first, practise their business more efficiently than other