Goals and Economic Decision Making. What is the primary goal?

Goals and Economic Decision-Making
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Goals and Economic Decision-Making
The primary goal of any company is making more profits. In essence, for a firm to maximize its revenues, the management team ought to come up with effective strategic decisions. Proper economic decision-making enables a company to meet its objectives. That is the reason why firms with the best financial decisions usually continue to grow and expand. However, those without proper strategic goals collapse when they encounter various challenges in their operating environment. A firm’s incentives, market rivalry, goals, and constraints significantly influence its economic decision-making.
A company cannot grow and expand without establishing strategic goals and using incentives to motivate its workers. There exist several stakeholders that must work in close collaboration with a firm to succeed in its operations. Some of them include employees, managers, suppliers, and the human resource department. As such, when it comes to workers, a company should reward them and create a conducive environment to motivate them. Incentives are significant in making employees optimize their potential (Parker, 2018). For example, a firm can come up with a system of rewarding the best-performing workers by either giving them a bonus, promotion, commission, or a salary increment. Additionally, the management team is responsible for making measurable goals, which are achievable within a particular period. Incentives and goals influence the financial decision-making process of a firm since they hasten its economic growth when implemented effectively.
Furthermore, market rivalry and constraints affect a company’s economic decision-making. Constraints are limitations that a firm must overcome for it to succeed. They include time, resources, employee turnover, and the availability of highly-skilled employees. For instance, a company ought to make strategic and timely decisions. Besides, it should provide products and services to its respective market when the demand is high. The lack of relevant resources, high r...