Money Addiction in Business
1.0 Introduction
Money is required to do just about everything that a business needs to achieve its goals. However, management sometimes becomes obsessed with making more and more money. This translates into additional profits for the business and may be described as an addiction. People become addicted to things for various reasons and businesses are managed by people.
2.0 What is an addiction?
An addiction to something means an inability to exercise control over its use and the process by which it is obtained. Addictions do not only relate to consumable items. It may be a dependence on a substance, for example, heroine or marijuana. It may also be the inability to cease a particular behavior, for example, …show more content…
Obtaining money by ensuring the organization makes a higher profit and therefore pay larger bonuses can be achieved in several ways. Competing unfairly to obtain a greater advantage and therefore gain a bigger market share than competitors is one method that managers use to increase sales and in so doing profits. Other unethical approaches relate to reducing expenses by engaging employees on short term contracts instead of employing them permanently; buying cheap supplies from suppliers who illegally use children to produce their products; or applying pressure to suppliers to provide supplies at a cheaper …show more content…
If there are many suppliers for businesses to choose from then the bargaining power of suppliers is weak. This is when suppliers are at the whims and fancies of businesses that they supply with products. Some of these businesses know the economics of business which indicates that efficient production means that manufacturers produce to the point where marginal cost which is the cost of producing an additional product starts rising. This means that suppliers who have not reached that level of production would be able to produce and therefore sell additional goods at a lower price without losing money. Therefore, they would be able to facilitate the pressure that a business places on an existing supplier by offering a cheaper price for the same goods. In fact, the price may be well below average cost of production. This practice also facilitates dumping which should not be encouraged. Dumping is selling goods in another country at a price that is below the actual cost of
1.0 Introduction
Money is required to do just about everything that a business needs to achieve its goals. However, management sometimes becomes obsessed with making more and more money. This translates into additional profits for the business and may be described as an addiction. People become addicted to things for various reasons and businesses are managed by people.
2.0 What is an addiction?
An addiction to something means an inability to exercise control over its use and the process by which it is obtained. Addictions do not only relate to consumable items. It may be a dependence on a substance, for example, heroine or marijuana. It may also be the inability to cease a particular behavior, for example, …show more content…
Obtaining money by ensuring the organization makes a higher profit and therefore pay larger bonuses can be achieved in several ways. Competing unfairly to obtain a greater advantage and therefore gain a bigger market share than competitors is one method that managers use to increase sales and in so doing profits. Other unethical approaches relate to reducing expenses by engaging employees on short term contracts instead of employing them permanently; buying cheap supplies from suppliers who illegally use children to produce their products; or applying pressure to suppliers to provide supplies at a cheaper …show more content…
If there are many suppliers for businesses to choose from then the bargaining power of suppliers is weak. This is when suppliers are at the whims and fancies of businesses that they supply with products. Some of these businesses know the economics of business which indicates that efficient production means that manufacturers produce to the point where marginal cost which is the cost of producing an additional product starts rising. This means that suppliers who have not reached that level of production would be able to produce and therefore sell additional goods at a lower price without losing money. Therefore, they would be able to facilitate the pressure that a business places on an existing supplier by offering a cheaper price for the same goods. In fact, the price may be well below average cost of production. This practice also facilitates dumping which should not be encouraged. Dumping is selling goods in another country at a price that is below the actual cost of