What Are the Fundamental Purposes of Business and the Responsibilities of Strategic Leaders?

WhatAre the Fundamental Purposes of Business and the Responsibilities ofStrategic Leaders?

WhatAre the Fundamental Purposes of Business and the Responsibilities ofStrategic Leaders?

A:

Accordingto the approach, shareholders are the main economic engine of anyorganization and thus the only group of individuals to which the firmshould be responsible at least socially. Therefore, the firm has tomaximize profits and then return part of the profits to theshareholders as a reward for the risky adventure into the firm (Jones&amp Felps, 2013). The shareholders are the owners of the companyand thus a business has to operate within the requirements of theowners, without which it will be illogical to start a firm. For thefirm to operate is has to be funded. The shareholders play criticalrole in funding of the firm. The operations of the business havetherefore to have the shareholders at heart.

Theshareholders play both direct and indirect roles. Some of the rolesthat they play include election of the directors. The directors,which they elect, have a role to appoint and supervise the seniorofficers. After all these responsibilities, the company cannot thenact on behalf of other people but the shareholder.

B:

Thereis only one valid reason that remains for the operations of abusiness and this is to create a customer. The main reason forkeeping the customer is that he or she is the foundation for theexistence of the business. It is through the customer that thebusiness is able to offer employment to individuals. Ideally, to meetthe wants as well as the needs of the consumer, the society has toprovide some of the wealth-producing resources to a businessenterprise (Khodaee et al., 2016).. Creating and keeping a customerincludes knowing the needs of the customers, who the customers areand the reason why the customers want the products. The firm has toensure that consistently and progressively it is able to serve theindividuals in a better way.

Additionally,the senior leadership’s primary responsibility is to ensure that acompany can achieve its strategic intent and win against competitionover the long term. The leaders have to come up with the beststrategies that will see the business remain top notch. Everystrategy is meant for the customer. Winning amidst competition needsthe firm to have the best strategies that will keep the demand of theproducts or the services they offer higher.

C:

Infact, a business should be able to solve the problems of thecustomers and the main thing is understanding the problems that thecustomers face. Technically, for a business to sell, it has to solvethe problems of the customers. The problems that customers face caneither be current or the problems that they will face in future asthe marketplace and their mode of operations change. Solving theproblem requires that one describes the problems comprehensively anddo it from the viewpoint of the customer. Solving will entail askingthe difficult problems before jumping to solve anything.

Creatingthe right environment entails understanding the requirements of thestakeholders and customers are included as major stakeholders in theprocess. The process of understanding them entails several thingsincluding improvement of customer service, reduction in the cost ofpersonnel, reducing the number of complaints that are likely to ariseand taking advantage of new technology to ensure that it benefits thecustomer in the end (Cina, 2013).

References

Cina,C. (2013). Creating an effective customer satisfactionprogram.&nbspJournalof Consumer Marketing.

Jones,T. M., &amp Felps, W. (2013). Shareholder wealth maximization andsocial welfare: A utilitarian critique.&nbspBusinessEthics Quarterly,&nbsp23(02),207-238.

Khodaee,H., Omrani, V., Kazemi, H., Tamar, I., &amp Piri, A. (2016).Investigating the effect of knowledge management on human resourcesproductivity. Management Science Letters, 6(4), 259-264.