Quote:
Originally Posted by henry quirk
Because, in selling a better, or superior, product, the wise business owner hopes to make MORE PROFIT.
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Not always true. Especially not true with NGOs and other non-profits. All (honest and needed) businesses have in common is what makes them productive. They must decide which one to address. Either better products or better profits. One cannot maximize both.
Productive companies that address their products can have a reward - profits. I keep posting this and you keep ignoring it. In part because it contradicts what business schools indoctrinate. Profit is only a reward. A reward can also exist in other forms. But one must decide to maximize profits (the reward) or the product. Most things done to maximize profits create inferior products. One cannot do both. As demonstrated in examples that were apparently too long; created glazed over eyes.
In every example, companies failed because they wanted to the profits. Innovation dies. Cost controls further destroy products to increase profits. Top management is replaced by profit experts who do not even know how to use the product. This happens when naive MBA types assume profits mean a better product must exist. You have absolutely no reason to assume that.
One must make a choice. Either maximize a product or maximize profits. Balmer so tried to maximize profits as to obviously harm Microsot's products. That is not an exception. It is a rule so reliable that you still fail to provide even one example ton contradict it.
Why do you never post an example? To make the point, you must keep ignoring what was posted. Understand the major difference between a 'purpose' and a 'reward'. Difference is major. It explains why companies that maximized profits end up with inferior products, adversarial employees, and threats of bankruptcy. Every failed company tried to maximize profits; therefore had to ignore the product. Concepts such as cost controls exist in dying companies maximizing profits while ignoring its products. The want the reward without earning it.