Exam (elaborations)
BUS 5116 Unit 7 Written Assingment
- Course
- Institution
- Book
A guide to assignment on the case study dealing with the dilemma between balancing profit and long-term sustainability
[Show more]
Connected book
Book Title:
Author(s):
- Edition:
- ISBN:
- Edition:
More summaries for
-
BUS 5116 Unit 8 Discussion Assignment
-
BUS 5116 Unit 7 Discussion Assignment
-
BUS 5116 Unit 6 Written Assingment
Seller
Follow
MasterAddis
Reviews received
Content preview
Written Assignment Unit 7MBA Business Administration
University of the People
BUS 5116-Operations Management
Dr. Catrin Hechl
December 29, 2021
Case Study
The case study deals with the dilemma of balancing between profit and long-term sustainability.
Every business has its objectives, mission, and values that set the foundation and long-term
goals. Based on these objectives, mission, and values the company develops its strategy and
plans. Traditionally, private firms focus only on profitability, and the strategies are geared
toward minimizing cost and maximizing profit. However, environmental and social awareness
has become more significant and the need to consider these factors is increasing.
Based on the case study there is a change in decision-making power from a single person to
shareholders. This brings new ideas, perspectives, and value systems into the decision-making
process. The shareholders have accepted the company's mission and vision, however; they want
to focus on the profitability aspect of the business. Consequently, when making benefit-cost
analysis factors like environmental issues may not be given the same weight.
Problem Analysis
The dilemma described above has various complicating factors. For instance, profitability is
easily measurable and traceable, however; social and environmental factors are hard to measure
and track. Additionally, it's difficult to find the tradeoff point between these various objectives,
or optimizing the problem becomes infeasible (Jensen, 2000). Furthermore, environmental or
social objectives are vast, and trying to deal with all of them may critically affect the company's
profitability, especially as the company grows in size.
As laid out in the case study, the actions taken by the company to fulfill environmental
responsibilities increase the cost which in turn decreases the profit margin. The decrease in profit
margin will not be taken positively by the shareholders and will decrease the company's capacity
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller MasterAddis. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $2.99. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
78637 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now