After reading the case and guidelines thoroughly, reader should go forward and start the analyses of the case. This time, highlighting the important point and mark the necessary information provided in the case.
Companies excel at taking inputs and creating value from them. For a business to take on the responsibilities of worldwide shipping by itself would be too costly.
It is up to the business managers to make the decisions and take advantage of cost externalization. Nature of organization Nature if industry in which organization operates. The company reduces its costs by reducing staff, while the customer bears the increased cost of waiting on hold.
Early Americans feared corporations as a threat to democracy and freedom. Then, a very careful reading should be done at second time reading of the case.
The strengths and weaknesses are obtained from internal organization. Though shareholders continue to benefit from profitable decisions, shareholders no Externalizing machines call the shots.
To analyze the business objective and its opportunities and threats, following steps should be followed: Improvement that could be done. Owners and managers of corporations pressed relentlessly to expand their powers, and the courts gave them what they wanted.
Barriers to entry that includes copy rights and patents. An early example of this was the self-service gas station, followed more recently by self checkout kiosks in grocery stores. BoxCambridge, MA Here again, corporations are key. And to externalize any costs that this unwary or uncaring public will allow it to externalize.
This would in turn give a chance for the suppliers and service providers to compete for business and may further reduce cost. This is where regulation comes in. This is one kind of control that a business loses when externalizing cost.
They feared that owners shareholders would amass great wealth, control jobs and production, buy the newspapers, dominate the courts and control elections.
For example, railroads and airlines transfer the cost of fuel, noise, and terminal infrastructure to the community.
After defining the problems and constraints, analysis of the case study is begin. But today, any remaining accountability is little more than a vestige of the original contract, the last remaining trace of the myth that no one seems to want to give up. In theory the shareholders are responsible for all decisions.
I would say this is highly unlikely. Careful operational forecasting must take place before taking steps towards cost externalization. Particularly during the s when Monks was a top Reagan appointeecorporate managers cut their last remaining ties of accountability to shareholders.
In addition, it also identifies the weaknesses of the organization that will help to be eliminated and manage the threats that would catch the attention of the management.Joel Bakan argues that corporation are “externalizing machines”.
Based on The Corporation, develop and defend a thesis/idea concerning the ethical consequences of companies externalizing costs. The corporation is an assembly of many members into one body, a legal personality, working toward achievement of a special goal.
Profists can be increased by keeping wages low and real social, environmental, and economic costs externalized, borne by society at large and not by the firm. Today's corporations have been called "externalizing machines" because they are so committed to keeping much of the real costs of their activities off the books.
Feb 26, · A corporation is an externalizing machine in the same way that a shark is a killing machine.
Each one is designed in a very particular way to accomplish certain objectives. In the achievement of those objectives there isn’t any question of malevolence or will. Sep 16, · “Companies are externalizing machines” This quote is from Greg Dalton of the Commonwealth Club/Climate One, during a recent talk on ecosystem services (link to full podcast).
It touches a nerve that is at the heart of the discussion about whether our society should innovate or regulate our way to sustainability. Cost externalizing is a socioeconomic term describing how a business maximizes its profits by off-loading indirect costs and forcing negative effects to a third party.
An externalized cost is known to economists as a negative externality. "The corporation is an externalizing machine, in the same way that a shark is a killing machine." -- Robert A. G. Monks. EFerrari is right. Corporations aren't "bad" and neither are sharks. But both can be extremely dangerous by their very nature.Download