|
In Ho Kim, Republic Of Korea
|
Searching for the General Theory of the Firm
Is it not possible to set up the general theory of the firm?
The reason why I raise this question is that there are so many methods, models and theories in dealing with business management, both theoretically and practically.
As we all know, a firm is a social institution to earn profit in a dynamical environment through value creation in which a firm should contribute positively to the society it belongs.
If we recognize the profit-seeking formula in addition to the things mentioned above in terms of the indicators of expected revenue and cost, then we are able to set up the general theory that will be applicable to any firm in any industry at anytime. .
X
Welcome to the Organization and Change forum. The topic being discussed here is: "Searching for the General Theory of the Firm".
Will you join us? It's free.
Log in
| |
|
Jaap de Jonge
Editor, Netherlands
|
|
General Theory of the Firm?
I'm afraid firms are quite complex social phenomena, so it may never be possible to capture them in a single theory or model.
Your definition of the (purpose) of the firm is far from universally agreed, there is considerable difference in what people people believe should be the purpose of firms. See shareholder value perspective, stakeholder value perspective, Porter's Shared Value and Mourkogianni's Moral Purpose for the most important views on this.
|
| |
|
In Ho Kim, Republic Of Korea
|
|
About the Very Purpose of the Firm
The very purpose of the firm must be to earn profit, taking into account so many aspects that will affect on profit-seek...
|
| |
|
Jaap de Jonge
Editor, Netherlands
|
|
Value Based Management
IF we accept your idea that profit or better: "long term value creation" is or at least should be the first aim/p...
|
| |
|
In Ho Kim, Republic Of Korea
|
|
Profit-seeker Rather Than Value Creator
If we accept that profit can be earned through value creation, before taking into account value creation, how about sett...
|
| |
|
Jaap de Jonge
Editor, Netherlands
|
|
Profit versus Value
In my view,
- Profit is an accounting word, short-term and only includes financial value.
- Value is a strategic word,...
|
| |
|
In Ho Kim, Republic Of Korea
|
|
Profit is More Important than Creating Value
Value can be created/added by transforming something into somethng else more valuable through manufacturing/operations, ...
|
| |
|
In Ho Kim, Republic Of Korea
|
|
Understanding the Concepts of Value & Profit
Precisely speaking, value covers revenue and consumer surplus and producer surplus, and for revenue -cost = profit, reve...
|
| |
|
Robert Gerth
Project Manager, Sweden
|
|
Understanding the Concepts of Value and Profit
In Ho Kim, I think you have a point considering that organization can earn profit through value creation. But in practic...
|
| |
|
In Ho Kim, Republic Of Korea
|
|
Earning Profit Through Value Creation
Mr. Robert
I'd like you to think what the real purpose of the firm is?
Basically, a firm can earn a profit by creating...
|
| |
|
Richard Platt
Business Consultant, United States
|
|
Minimum Winning Game Theory: The General Theory of the Firm (for Aviation, Aerospace, Defense, High-Tech Electronics and Semiconductors)
Searched for years on what the "General Theory of the Firm" would be for my old firm, Intel Corporation, as our former C...
|
|
Log in
