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Growth as a Firm's Main Objective

Question

Discuss whether or not a firm should have growth as its main objective.

Category:

Firm Behavior and Strategies

Preview Answer

STEPS TO WRITE ESSAY 💡MAIN POINTS💡OVERVIEW

I. Introduction

Explanation of the topic and the purpose of the essay
Brief overview of the arguments for and against growth as the main objective

II. Arguments for Growth as the Main Objective

Increase in market share
Increase in market power
Increase in profits and shareholder satisfaction
Greater advantage of economies of scale
Increase in pay and job security of managers/directors
Difficulty for another firm to take over

III. Arguments Against Growth as the Main Objective

Survival as a more appropriate objective if demand is falling
Limited potential for growth in a niche market
Profit maximization as a means to fund future growth
Social welfare as an objective for state-owned enterprises
Potential for diseconomies of scale
Negative effects on workers and productivity

IV. Analysis and Evaluation of the Arguments

Discussion of the strengths and weaknesses of each argument
Comparison and contrast of the arguments for and against growth as the main objective
Analysis of the relevance of each argument in different contexts and situations

V. Conclusion

Summary of the main arguments and conclusions drawn from the analysis
Recommendation on whether or not a firm should have growth as its main objective, considering the various factors discussed in the essay

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