What Are the Fundamental Purposes of Business and the Responsibilities of Strategic Leaders?
Milton Friedman a noted free-market economist suggested in 1970 that the sole purpose of business is to generate profit for shareholders.
Peter Drucker a leading management specialist said during his decades of management consulting that the purpose of business is to create and keep a customer.
Norman Wolfe (2010) wrote that business is a complex living system that directs the flow of energy and transforms it into desired results. (p. 1)
A fundamental basis for successful strategy whether at the economy level or the company level is understanding the purpose of an organization. Confusion over the means/ends relationships within a strategic thinking context can lead to devastation at all levels of the organization. In this Discussion you are asked to reflect upon various points of view that relate to the purpose of business and to defend a point of view that you are assigned.
To prepare for this Discussion review and take critical reading notes on this weeks required readings media and any relevant resources from your MBA Program Capstone Bibliography document.
Note: Your Instructor will randomly assign you to address one of the below three points of view ( the instructor assign the below point to me):
The sole purpose of business is to generate profit for shareholders as Milton Friedman suggests. The primary responsibility of senior leaders of business is to ensure shareholders receive maximum returns.
Post by Day 3 a well-written response to support the point of view that your Instructor assigned to you.
Be sure to make as strong of an argument as you can to support your view relying on the assigned and other resources you have chosen from the MBA Program Capstone Bibliography or program content whether or not you agree with the point of view personally. This is like a mini- debate so be nice and have fun!