Please grade my essay!

[christinawang1990216]

The primary goal of every business is to maximize profits.

 

Every business develops by expanding both in size and in width. Maximizing profit gains makes it possible for companies to acquire the resources to expand. Profits are used to establish branch offices across the country, build more factories and warehouses,and increase the number of employees, thereby increasing the size of a growing company. Profits are also used to attract prospective investors and customers, build buisness networks and possibly expand into related fields,therefore broadening the width of a company's development. So, it is not suprising that growing companies devote most of their resources to maximizing profirs. Facebook clearly shows the advantages doing this. When Facebook first started, it was not a free public website like it is now. Each new account and each access to another person's webpage were charged. Advertisements were also ubiquitious. However, since this idea of worldwide social networking was unprecedented, the number of new account registration increased exorbitantly each day. Mark Zuckenberg and his team of only four Harvard students used the profits to expand Facebook into the social networking giant it is today. Without the initial stratagy of focusing only on profits, Zuckenberg's team could never attract countless experts in website desgin to develop the later hugely popular applications; his team also could not have the credentials to persuade investors into betting their own profits into such a young company like Facebook. Facebook's success illustrates that maximizing profits serves as the foundation for expandsion and should be every growing buisness' priority.

 

On the other hand, for established companies, instead of striving for making profits only, their primary goal should be to maintain current resources and assets. For these comapanies, they already have a stable base of customers and investers,or shareholders. Their material assets, such as factories and equipments are advanced and well maintained. Generating more profits to devote to these areas are only icings on a cake, nice to have but not essential.In other words,further profits will only incur marginal growth for the company. For example,Morgan Stanley is one of the most esablished investment firms in the world. It has branch offices in almost every continent, and only attracts the best investment bankers in the world. Its customers range from oil companies to royal families. For a company like this, with such exensive business connections and a well-established reputation amoung investors,the priority is to secure the investors and shareholders and prevent anything from tarnishing its image. Continuing to utilize every means to rake up more profits will only lead people to perceive the company as greedy and impersonal. Potentially losing investors and shareholders will render all the early efforts made by maximizing profits obsolete. Therefore, for an established company like Morgan Stanley, focusing solely on generating profits is more deleterious rather than beneficial.

 

In conlcusion, whether a company should priorize maximizing profits depend on the stage a company's development is at. If a company is just starting, it should devote most resources to generate profits in order to establish itself in the field. Such business uses profits to expand its size, attract potential employess an investors. These newly acquired assets, whether material or intellectual,will further help the company gain more profits. This positive cycle will push the company to a plateu. Companies at this plateu are well established both in terms of size and width. Devoting many resources to generate profits will only produce disproportionaly small growth and possible harm to the comapanies' image. Therefore, maximizing profits works, but only to a certain stage.

[thehumanmacbook]

Post it in Pasta's thread, please not as a separate thread.