This is a fundamentally important concept in understanding production decisions. As ever, Tutor2U has produced a brilliant summary:
Here is your first A2 level essay question:
“Evaluate whether profit maximisation is always the most important objective of firms.”(25 marks)
Deadline: Weds 23rd September
You’ll need to make sure you have done some wider research and reading to answer this question well. Remember that evaluation is critical, so take care with how you structure your answer and develop your points.
In 2010, after many months of wrangling and argument, Kraft (the worlds largest food business) acquired Cadbury (the much loved British confectioner). A great example of competing stakeholder objectives.
Read the article above (and any associated information you find) and consider the conflicting objectives of stakeholders. Which group proved to be most influential?