Re: What is the purpose of a commercial firm?

[Myron Tribus <mtribus@home.com>]

It seems to me that the discussion of "multiple aims" of an 
enterprise mixes the two concepts "aim" and "goal".  I suggest that 
an enterprise has an overall aim, the purpose for its existence.  To 
achieve this aim, the enterprise sets for itself a number of goals.

For example, in a company that I had a hand in founding, our aim was 
to produce systems of increased efficiency and economy for the 
production of electricity.

To achieve this aim we had several goals:

1) To raise the money to support the work. This in turn required that 
we organize to pay the money back with enough return to make 
shareholders happy. (We haven't succeeded yet!)

2) To design specific systems for specific needs.

3) To provide appropriate rewards for our employees, including 
opportunities to grow and develop.


4) To develop proprietary software.

There were other goals. I hope that I have made the point.  I believe 
that when a company concentrates on only one of its goals, as though 
it were the aim of the company, it is headed for difficulty.

Myron Tribus,  350 Britto Terrace,  Fremont, CA 94539
Ph:510 651 3641  Fax: 510 656 9875   e-mail: mtribus@home.com
If it goes without saying, it goes better if you say it (An old Hindu proverb).
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