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Searching for the General Theory of the Firm
In Ho Kim, Professor, Korea (South), Member
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. ....
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General Theory of the Firm?
Jaap de Jonge, Editor, Netherlands 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 ...
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About the Very Purpose of the Firm
In Ho Kim, Professor, Korea (South), Member The very purpose of the firm must be to earn profit, taking into account so many aspects that will affect on profit-seeking. It does mean that the fir...
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Value Based Management
Jaap de Jonge, Editor, Netherlands IF we accept your idea that profit or better: "long term value creation" is or at least should be the first aim/purpose of any firm, then the <...
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Profit-seeker Rather Than Value Creator
In Ho Kim, Professor, Korea (South), Member If we accept that profit can be earned through value creation, before taking into account value creation, how about setting up the equaton, expected p...
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Profit versus Value
Jaap de Jonge, Editor, Netherlands In my view,
- Profit is an accounting word, short-term and only includes financial value.
- Value is a strategic word, long term and more in...
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Profit is More Important than Creating Value
In Ho Kim, Professor, Korea (South), Member Value can be created/added by transforming something into somethng else more valuable through manufacturing/operations, and can be allocated to the st...
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Understanding the Concepts of Value & Profit
In Ho Kim, Professor, Korea (South), Member Precisely speaking, value covers revenue and consumer surplus and producer surplus, and for revenue -cost = profit, revenue = cost + profit. Therefore...
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Understanding the Concepts of Value and Profit
Robert Gerth, Project Manager, Sweden, Member In Ho Kim, I think you have a point considering that organization can earn profit through value creation. But in practice an exclusive focus on profit...
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Earning Profit Through Value Creation
In Ho Kim, Professor, Korea (South), Member 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 value, while it does ...
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