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Reflect upon various points of view that relate to the purpose of business, and to defend a point of view that you are assigned

Reflect upon various points of view that relate to the purpose of business, and to defend a point of view that you are assigned

Milton Friedman, a noted free-market economist, suggested in 1970 that the sole purpose of business is to generate profit for shareholders.
Peter Drucker, a leading management specialist, said during his decades of management consulting, that “the purpose of business is to create and keep a customer.”
Norman Wolfe (2010) wrote that “business is a complex living system that directs the flow of energy, and transforms it into desired results.” (p. 1)

A fundamental basis for successful strategy, whether at the economy level or the company level, is understanding the purpose of an organization. Confusion over the means/ends relationships within a strategic thinking context can lead to devastation at all levels of the organization. In this Discussion you are asked to reflect upon various points of view that relate to the purpose of business, and to defend a point of view that you are assigned

 

ost a well-written response to support one of the following points of view that your Instructor assigned to you:

  • A: The sole purpose of business is to generate profit for shareholders, as Milton Friedman suggests. The primary responsibility of senior leaders of business is to ensure shareholders receive maximum returns.
  • B: The primary purpose of a business is to create and keep customers. Senior leadership’s primary responsibility is to ensure that a company can achieve its strategic intent and win against competition over the long term.
  • C: The primary purpose of business is to solve people’s problems. The primary responsibility of senior leaders is to create and maintain an environment of meaning and purpose so that the organization’s people can create value for a broad range of stakeholders.

Be sure to make as strong of an argument as you can to support your view, relying on the assigned and other resources you have chosen from the MBA Program Capstone Bibliography or program content, whether or not you agree with the point of view personally.


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