Business world is more competitive today and every organisation is doing their best to be in the league. In these days for a company choosing a corporate objective is really essential as failure or success of organisation is linked to it. Companies looking for more innovative technique and methods by which they can reduce their cost and increase profitability. Keeping Marginal Revenue (MR) = Marginal Cost (MC) is the basic tactics followed by the organisation. Additionally, contemporary and smart managers are finding new ways to increase the profitability of their organisations. Further, its various stakeholders such as employees, suppliers, etc. contributes to the growth of the organisation. Similarly shareholders are also helping the organisation
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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
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