Compare or Contrast Public and Private Companies

In todays highly moneymaking(prenominal) world, one of the key objectives of starting a credit line sector is to make profit. sequence this efficiency be true and important to e genuinely business, most raft believe that a business should not centralise solely on profitability, but on the calibre of harvest-festivals and services it offers to its customers.This essay leave alone hash out the various perspectives on the topic and will to a large boundary agree with the turn over that businesses should not just focus on profit, by looking at customer desire for high quality harvesting and their willingness to pay, then highlighting how focus on quality can corpus to lower greet of fruit and profitability as well as how quality influence organisation to be socially responsible, sustainable and profitable.First, a strong reason to concentrate on improving quality of convergence or services of an organisation is the fact that customers desires high quality well(p), and atomic number 18 willing to pay for value added. This was corroborated by (Nagar and Rajan 2001), who found out that pitiful product quality reduces customer goodwill and loyalty which in exhaust affects future revenues as dissatisfied customers take their business elsewhere or pay less for the business firms product. Such a product and the firm producing it acquire a bad reputation since poor product quality leaves a lasting impression on the consumer who perceives it as a low quality brand. In order for a product to be a perceived as a premium brand, a firm must continually improve on the quality of its products or services. A satisfied customer base lead to good brand detection and will open the door to numerous repeated purchases and referrals which will in turn help the firm to grow its market share, become more(prenominal) competitiveness and increase its profitability.Focusing on quality significantly lowers cost of business at long run. Operations Management (Russell a nd Taylor, 2000) explains that, manufacturing of products to a high quality standard through implementation of quality focus system set about a large impact on overall quality cost reduction, it in addition argues that it saves time and money by reducing the amount of regretful products that could result in wastes, thereby lowering significantly the costs of production, as well as cost to re-work defective products.Without a quality management system, poor-quality and defective products may finds their way into the market, through to the customer leading to indorsement claims, product returns and in extreme litigation from product liability or injury to the customer. This may have a serious financial significance to the company as the costs associated with product recall and warranties would be huge and in extreme case the aggrieves imposed due to litigation could make the company insolvent, leading to a total collapse.However, an opposing stead on this is that profit maxi mization is should be the main focus of the business as long as it pays its taxes and operates within the ambit of the law (Friedman, 1962). Certainly, this view may have worked for organisations in the 1800s it definitely does not obligate in todays modern and globalised world. The perspective is not except very narrow in view it also fails to take into reflexion other stakeholders who are affected by its activities of, but can also affect its existence.To these types of organisations, making ethical decisions is seen only if from the viewpoint costly and profit. Organisations operate for profit alone are yet to appreciate the advantages of good corporeal social responsibility and capitalize on it to grow their businesses in a sustainable and socially responsible manner. This drive for profit has led umpteen to slash of employees benefits and salaries benefits pollute the environment and cause permanent damage to the ecosystem all in bid to improve their bottom-line and many have pull in a very bad reputation, suffer product boycott and defile their corporate image.In concluding this essay, as much as profit is very essential to the survival of a business, I want to agree that businesses should focus more on the improving quality of its products or services. This can be clearly seen to from the fact customer expects high quality at good value always, and because improving the quality will eventually bring surmount cost of production for a company. As well, quality focus drives a company to take ethical decisions and operate in a socially responsible and sustainable manner.It may be tempting for a business to sacrifice quality in order maximize its profit. However, it benefits will only be in the short term. A simple focus on profit maximization could destroy the continued existence of the business, not to detect the society in which it operates. A firm aiming extreme profit might purposefully cut corners during a project, knowing it gets the perks of a better after part for now knowing a future management team will have to deal with the damage of spill-induced lawsuit, fines, and a haul-up to it at the Criminal Court.