Business Strategy

Question: Write an essay onBusiness Strategy. Answer: Introduction: Nowadays, the major goal of the firm is to earn maximum profit and to sell the maximum amount of the products to the customers. Milton Friedman, the famous researcher adapted the shareholder approach to obtain the maximum profit. By earning the maximum profit, the firm returns the beneficiary amount to the shareholders who have their contribution to the risk. Friedman also argued that personally the business aims to earn the maximum profit and provide the appropriate facilities to shareholders. Personally, it is the shareholders responsibility, whether they want to contribute their personal share in the social services or the social responsibility. The related concept to the process is defined on a wide level and various aspects are defined, which are in favor and against of the topic. To identify the core concept of the statement, the critical analysis is also made for the particular process. The critical analysis is considered as the only method by which the aspects r elated to the negative and the positive perspectives can be clearly defined. The major purpose of the essay is to focus on the critical aspects related to the statement. While studying about the core concept, sometimes the negative aspects and at times the positive aspects are highlighted. This essay also covers the role of the CSR. The major sections which are defined in the essay are named as the major aspects related to the concept, role of profit and loss in concept, literature review, current business examples, critical analysis followed by the appropriate conclusion. Major Aspects related to the Concept: Milton Friedman propounded the various concepts and the theories related to the social responsibilities and the aspects related to it. In support of this statement, he also defines various different types of other statements to support the statement propounded by him. He also tries to collect the evidences and examples from the various organizations to prove the statement proposed by him. To survive in such a competitive environment, the business has only one responsibility that to use the maximum resources up to a great extent. In fact, the maximum utilization of the resources may also make to increase the activities related to the maximum profit earning. To define the profit, various subsections are also defined below. Literature Review: In one of the article it is defined thoroughly that the social responsibility is the method to maximize the profit by meeting the wants of the individual person, without imposing any initiation of force. The willingness to promote the business and to involve in the social activities is considered as the individual aspect and this individual aspect can only be fulfilled, when internally someone wants to complete it. The other article is helpful in discussing the critical aspects related to the topic. This topic of Friedman is considered as the most appropriate topic of the discussion. Many researchers and the debaters also tried to find out the appropriate aspect related to the statement. In this article, there are various small statements defined which are showing the critical analysis (Dunn Burton, 2008). The article shows that, Only people have the responsibilities, not the business or the appropriate organization. The business is being indulged in the legal aspect and to manage the social responsibility, is not included in the management of the business. If the statement relates to the moral responsibility, then it would become easier to explain the aspects related to the business. But as the business is explaining about the social aspect, the elements should define in an appropriate manner. Through this article, the social, legal and the other aspects are being defined by the Friedman (Fox , 2012). The journal relates to the Friedmans research which defines that the social responsibility is considered as the profit making aspect, but indirectly the managers hold the responsibility to manage the most important and appropriate aspects. Friedman also introduces the concept of the agency which directly helpful in intimating the process that the managers possess the direct obligation to work according the desire and the demand of the customers. In the literature review, there are various aspects which are defined on the vast level. By following the statement propounded by the Friedman, the other statement has also been introduced in the process. The statement states that The doctrine of Social responsibility taken seriously would extend the political mechanism on the large scale. The statement defines the other aspects related to the social responsibility in which it is clearly defined that the social responsibility can change the phase towards the political mechanism and the chances of the political aspects may also become stronger (Mariano, 2012). By analyzing and observing the various literature, journals and the article, it is quite clear that for providing the strength to the essay it is necessary to identify the important yet different aspects. Critical analysis: There are various researches which are in the favor against of the particular statement. Some of the positive aspects are the increment in the valued services, maintenance of the originality and other aspects are defined. The reports and the different researches defined that the organization tried to maximize the profit, but with that the suitable value will be provided to the customers. These valued services would be directly promoted to the sale of the product and proportionally the amount will be helpful in contributing in the social services. For example, for purchasing the product of the Nike, the Customers are ready to pay any cost and thus, from that cost some amount can be easily transferred to the social responsibility. To define the positive perspective of the statement, the role of the profit and loss is considered as an important one. By the profit and loss, the appropriate aspects are related to the process which can be defined easily. The aspects related to the profit (well) and loss (poorly) will be helpful in doing the forecasting of the business appropriately. By analyzing the profit and the loss ratio in the business, it will become easy to identify the maximum profit and loss in the business. By this, the completion of the social aspects can also be determined on the wider level. To earn the maximum profit, the organization needs to provide some valued services or the valued aspects to the customers. The only method to increase the profit is to provide something more valuable to the other individual. The business either it is small or it is large, has to provide the individual services to the people to get the successful feedback. There are various live examples which define the appropriat e aspects related to the social aspects and the responsibilities. So, in short it can be concluded that the business is actually benefiting the customers the people and proportionally, the business is also helpful in completing the social responsibility. So, by this, the positive aspect can easily be defined on the easy level. After analyzing the positive aspects, the negative aspects related to the statement are also defined by considering various articles, journals and the research aspects. There are various researchers who propounded the statements against the statement of the Friedman with the appropriate evidence. In one of the article, the statement propounded by the Friedman discarded from the initial level. Through the article, the question is raised about the validity of the statement. The business cannot be considered as the social responsibility, because logically the categorization of the business can be done on the corporate basis. In fact, the appropriate evaluation can only be done when the corporate level of the business is defined. Every business introduced for earning the maximum profit from the customers, then how could it become possible to contribute in the social responsibility. The people or the employees who are working in the organization hold the responsibility to manage the busin ess. In brief words, the corporation possesses the artificial environment and holds the artificial responsibilities. Secondly, the Freidman also fails in understanding the ethical behavior of the business. The ethical behavior will be helpful in increasing the marketing proposition. The ethical solution towards the social responsibility can also become possible because by this, both the social responsibility and the profit making aspect can get fulfill easily. The other statement against the Friedmans statement is that the corporate executives hold the responsibility to manage the business rather than the social responsibility. The executives hold the wide range of responsibilities like the responsibility of management, completing the desires of the customers and providing the maximum profit to the shareholders and many others. With this, the manager also wants to earn their maximum profit to feed their family and children. Then how it could become possible for a business to complete the social responsibility on the wide level? In fact, the corporate executives also have to manage and raise the business, according to the demands raised by the customers and the shareholders. So, the task of social responsibility will directly depend on the contribution of the customers and the shareholders. By assuming these positive and the negative aspects, it becomes easier to identify the pros and cons of the statement. Friedmans View on CSR: After identifying the critical analysis of the particular statement defined by the Milton Friedman, the individual view on the CSR is also defined. With the social responsibility, the corporate social responsibility also holds the important aspects in defining the statement propounded by the Friedman (Friedman, 2013). In favor of his own statement, the Friedman said that the social activities and the involvement of the organization in the corporate activity will directly influence the economic and the financial aspects of the organization. The shareholders are not able to decide that how the distribution of their money can be done. So, according to him, the company has to focus on their self-profit and self-motive rather than following the corporate social responsibility. After gaining the suitable profit, the company can involve in the CSR activities. This evidence derived from the article clearly shows that the Friedman is in favor of self- profit rather than the social services. To analyze the view of the Friedman on a deeper level, there are various separate views mentioned by the different researchers and the analyst. According to the socio- economic and utilitarian views, it is propounded that gaining profit in the business and to maximize the business is a good aspect, but not investing the share in social service is considered in the category of the unethical behavior. So, according to the other researchers view, the Friedman view is quite different and the motive is to earn the maximum profit. According to the Herzbergs motivator hygiene theory, the consumer defines that the easiest way to claim the social responsibility is to manage the label of the products in an appropriate manner (Lucid, 2008). By this, it becomes easier for the organization to earn the maximum profit and to gain the most appropriate feedback from the customers and the shareholders. On the aspects related to the CSR, there are various Meta Studies performed. These Meta studies are undertaken by the Griffin and the Mahon. There is no social relationship between the social aspects and the profit making process of the corporation (Omnex Inc, 2014). By analyzing the different views of the researchers, it is considered that the CSR is still considered as the most appropriate topic to be considered. Current Business examples: To fulfill the major conditions related to the statement, there are various live examples and the evidences collected from the various different types of literature defined. To earn the maximum profit and to make the appropriate distribution of profit among the stakeholders is the primary target of the organization. Simultaneously, to complete the social responsibility is also considered as an important aspect. To fulfill both the aspects, the various companies on a worldwide level introduce the different concepts of selling the product. By this, the task of social service may be completed easily and the organization may also able to earn the maximum profit. Both the positive and the negative examples are defined to solve the purpose (Friedman, 1970). The criteria for earning the profit may be decided on the basis of the type of business and the standards of earning the maximum profit. For example, Wal-Mart is considered as the major retail store in the UK, which provides the different varieties of the products to the customers. By this, the requirement of the customers may fulfill on the large scale. To complete the social responsibility and to make the maximum profit from the business, the free offers and the cash back offers are provided by the Wal-Mart. The maximum products are purchased by the customers. Similarly, by tying up with the other organizations, the Wal-Mart proposed the various products which will contribute in the social services in a different manner. The customers purchase the products and indirectly, the organization makes the maximum profit and also earns the fame in terms of the social services (Chicago, 2016 ). Various small organizations like the coffee offering organizations in the different firms and the various small chocolate making companies offer their products free of cost to the employees. After promoting their products, the companies ask the employees to purchase the products on maximum, so that they earn the maximum profit and indirectly contribute in the social aspects too. Starbucks the international coffee making and providing organization also provides millions of coffee to the customers. By this, the coffee making company tries to earn the maximum profit and the organization also becomes famous by offering the coffee to the customers. By this aspect, the organization can able to earn the appropriate image and by providing some amount for the social services, the company can able to make its identity in the good books of the people (Friedman, 2011). On the other hand, there are various examples of the other organizations too whose personal aim is to earn maximum profit rather than providing the social responsibility towards the people and the customers. For an example, the Cleveland organization dumped their chemical waste in the nearest river which is harmful for the health of the people residing nearest areas. Milton Friedman considered it appropriate because it is correct according to the business, but it does not provide any benefit to the social responsibility. Similarly, the Big tobacco is the organization which is continuously supporting the campaign and advertising related to the usage of the product. This is the biggest fraud with the health of the people, but the organization considered it right because it is suitable for the financial aspects of the organization. But simultaneously, the customers have to suffer from the health issues. So, these negative aspects are helpful in showing that the organization only wants t o earn the maximum profit rather than taking the social responsibility. By observing the negative and the positive aspects, it becomes easier to identify the statement on the critical level. Conclusion: As it is shown in the paragraphs above that there are various aspects and the research work are carried in the favor and against of the statement The only social responsibility of business is to make profit. From these researches, the easy conclusion can be drawn. By the analysis, it is identified that the Friedman provides the statement according to the profit gained in the business. He considers the social and corporate social responsibility on the secondary level, the primary purpose is to manage the personal profits. The essay is also helpful in defining the critical analysis of the particular statement. There are various negative and the positive aspects defined in the critical analysis which is also helpful in defining all the major aspects related to the process. Its not an easy task to change the views of the Friedman because he derived the views from the various theories. But, by accepting the positive views from the Friedmans theory and excluding the negative perspectives, it becomes easier to adapt the statement easily. The other theories may also take into consideration, by this, the solutions related to the social and the corporate social responsibility can be identified easily. Finally, the stakeholders and the customers are considered as the suitable source to manage the social responsibility and the process. Bibliography Chicago, T. U. o., 2016 . Corporate social responsibilty friedmans view. [Online] Available at: https://bfi.uchicago.edu/news/feature.../corporate-social-responsibilty-friedmans-view Dunn, C. P. Burton, B. K., 2008. FRIEDMANS THE SOCIAL RESPONSIBILITY OF BUSINESS IS TO INCREASE ITS PROFITS: A CRITIQUE FOR THE CLASSROOM Fox, J., 2012. The Social Responsibility of Business Is to Increase What Exactly?. The Social Responsibility of Business Is to Increase What Exactly?, 18 April. Friedman, J., 2013. Milton Friedman Was Wrong About Corporate Social Responsibility. Milton Friedman Was Wrong About Corporate Social Responsibility, 12 August. Friedman, M., 1970. The Social Responsibility of Business is to Increase its Profits. The Social Responsibility of Business is to Increase its Profits, 13 September. Friedman, M., 2011. The Social Responsibility of Business Is to Increase Its Profi ts: Business Ethics Now. Lucid, 2008. Milton Friedman on Social Corporate Responsibility. Milton Friedman on Social Corporate Responsibility. Mariano, J., 2012. In Defense of Increasing Profits as the Social Responsibility of Business. In Defense of Increasing Profits as the Social Responsibility of Business, 30 August. Omnex Inc, 2014. Corporate Social Responsibility (CSR): Milton Friedman and CSR. [Online] Available at: https://www.omnex.com/sustainability/csr.html