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Answer to Question #26912 in Economics of Enterprise for yanzey

Question #26912
A finance professor and a marketing professor were recently comparing notes on their perceptions of corporations. The finance professor claimed that the goal of a corporation should be to maximize the value to the shareholders. The marketing professor claimed that the goal of a corporation should be to satisfy customers.
What are the similarities and differences in these goals?
Expert's answer
The financial department goal is to maximize shareholder wealth. And the goal of marketing department is to satisfy
customers.
The main similarity of these goals is that both the goals tend to maximize the
profit of corporation, but setting different targets to reach this
maximization.
The main difference is that marketing department sets the needs of a customers
as the main goal to achieve, and if the needs are satisfied, there is a demand
for corporation products and it is profitable, so the shareholders wealth will
be maximized.
But financial department sets the shareholders wealth as the main goal, but the
reaching of it not always will cause the satisfying of the customer needs.
So, apparently the goal of marketing department is better, as both customers
and shareholders will be satisfied.

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Comments

Assignment Expert
07.08.13, 17:29

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yanzey
04.07.13, 06:25

This reallly answered my question..Thanks so so much..Keep it up

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