What other reasons might motivate firms to produce goods and services besides profit maximization? Can you provide one example of a firm operating successfully without positive economic profit?
If anything the one main thing that comes to mind is a PR stunt. Like for a cigarette company trying to avoid a lawsuit would start producing products that go towards being healthier for the consumer.
A company may want to produce a good not only for profit but too make the best quality product on the market so everyone wants their things. They may want to just show everyone that their products are top quality.
Some firms are non-profitable, like "Good will", they get the old clothes from other person's donate; and resell the clothes to other people. In the end, they give the revenue to the charity. The firm runs very successfully, but it is not positive economic profit.
Sometime, firms produce some goods even they raise money for charity and contribute their goods for free. This is not a purpose for profit maximization. Some firms want to see long term view and through that they make more profits. These production will make those firms images improve. People can have good images about those firms which give charity under their unconscious. Even though those firms cannot make any profit right now, they can make much more profit in the future. This can be one of factors making production without profit maximization.
A reason to produce a good or service without the idea of maximum profitability is for a promotion. Take McDonald's for example and their McRib sandwich. Their main focus is to get people coming into the door rather than maximizing profit because it costs more to produce this item than does an item that is a typical part of the menu.
I think the TOMS company is a good example of a firm that produces goods that don't just go towards maximum profit. I was reading a magazine that interviewed the CEO and founder of TOMS shoes and he said his main motivation was solely after his soul searching trip to Argentina where he felt the need to help the children there, hence the donation of one pair of TOMS shoes to every pair purchased. I hope that is a good example.
One example of a firm that i know that doesn't try to meet profit maximization is red bull. red bull just doesn't make drinks they sponsor just about every action/extreme sport and also the athletes that participate in them. So there whole sport side of the company isnt to make money, they just really want to get Action/extreme sports more in the spot light; and they do this by funneling money into the sports and they do not get returns from that investment.
One example is Susan G Komen's foundation. This foundation does not earn a profit, it instead funnels all the money is raises and collects to cancer education and research. This foundation was created to improve cancer survivors/victims lives through creating a community of support increase awareness and knowledge and work towards discovering a cure.
Reasons that might motivate firms to produce goods is to help out the community, helping those in need. Like for example, when people donate clothes, shoes, food..etc
Personally i don't think anyone would want to do it other then for profit maximization. But if i had to pick another reason i would say mainly for charities so that they can do good to other people or like for example the celebrities they want to look good in front of there fans and they do stuff like that.
I believe companies are always giving back to the community. My father works for a huge Seafood Company names Anthony's Homeport in Seattle. Every year the owner and his family host an auction/dinner and sell tickets at 250 dollars a pop. All the money that is made from the auction and ticket sales is donated to families who lost their spouse, child, etc.
I believe every firm has some kind of profit in mind. something that might motivate them could be a charity that they strongly believe in or maybe even something they can put on their taxes. Or just too look good. An example can be, the National breast cancer association.. i think.
One way could be helping those in need. For example doing community service or even donationg things like clothes or even money. Your not being paid to do any of these things but it helps you in the long run. Also running or walking for those who have an illness to raise money.
Something I would say would motivate firms would be enivronmentally concious ideas which are good for both the environment and the consumers. Toms is an example of a company that is both environmentally concious and also concerned about children from a third world country.
Sometimes firms tend to produce goods and services besides profit maximization.Most likely is because they want to open their market and attract more people to pay attention to their stuff,which will benefit them in the long run. A good example would be discount on new arrivals in the market. Firms lower the prices on purpose not only can motivate more customers to buy but can also increase the quantity being sold. Therefore increase their total revenue in the end.
Some firms choose to produce goods and services besides profit maximization for the purpose of there business, for example health clinics. They are for the most part nonprofit and provides goods and services to help those who cant necessarily pay the services they need. They still use money to survive but do not acquire profit from the services.
the firm that promotes I<3 boobies wrist band represents brest cancer and it is there to promote and also raise money for the patents. rather then maximizing their profit.
When it comes to non profit companies the first thing that come to mind is Toms and Livestrong. Toms shoes donate a pair of shoes when you buy one so i think their interest is to help people not to make that much profit. Livestrong is the same way with their wrist bands and other producta that help people with cancer. -Robert Arnold
I think firms wants to expand their business and just having the opportunity to get their name out there. It simply starts with a small firms and then it slowly rises even if there is no real profit. Let say an example would be firms that are out there to help cure viruses and diseases. I know the Tom company may be making good profits now but I am sure it started off little and the words got around and thats how the company is where it is now, the Company intentions was to sell shoes so they can afford to send out a pair of shoes to Africa, not much of a profit there right, but as time flew by there are more people buying the products that it is benefiting both the company and Africa.
Other reasons firms might be motivated to produce goods and services besides profit maximization are memership, ego, reputation. Some of the sororities on campus produce clothing with there label. This allows people to become aware of the group and possibly join them.I don't believe they are making a big profit from that stuff. They benefit from people become members of there organization.
The one thing that comes in my mind like when businesses give out free goods and services. For example, Starbucks and Krispie Cremes gave out free coffee and donuts if you voted for the presidential election in 2008.Its not because they get free advertisement or because it is cheaper to give out coffee and donuts instead of putting up a costly advertisement on Tv, it's because they care about the president.
Sometimes companies give discounts on some goods, so many customers come and something that doesn't any discount in order to sell more and make profit. This the main goal for most companies “making profit". However, they are some companies donate each time you buy a product from them. By doing this they get customers and do something good for other. They maximize profit and give something back to how is needing food, close, health caire.....etc. They are many companies do that. That what I heard from other about this issue.
It could be to upbuild the self-esteem of young women & help them to become more courageous like Miss America. The money collected might eventually go to some type of organization, but when watching Miss America it seems as though the competiton gives the young women confidence and helps them to find themselves (personality-wise)
I think the public welfare establishments maybe is a good way to let firms produce goods and give a good services. The shoes company that named TOMS may can be a good example for it. When I was buying the shoes from TOMS' online store, the Propagate language and advertising are try to tell us they would be help the kids from the third world country. The public welfare establishments will often be able to promote the company's earnings and also improve the company's reputation and image.
A few people have already said it, but TOMS shoes are a great example for this question. The company focuses more on bring shoes to those who don't have any rather than focusing on their profit. Of course, they do need to focus on creating new types of shoes to match more of today's styles, but their main focus is donating those shoes to the less fortunate.
I know of the group called (PRODUCT) RED that has hooked up with Nike, Starbucks, Converse, Apple, Gap, Hallmark, Dell, among other corporations in order to raise money to fight and eliminate AIDS in Africa. I don't know anything of how the system works for them but that by buying these (RED) sponsored products, supposedly 100% of the profit will be sent to fight AIDS. Now the (RED) brand is not trying to make profit and probably has all the best intentions to really fight against AIDS but really, they are just a middleman sending money from the consumer of there sponsored products to other groups who may or may not be non-profit to help resolve the AIDS problem. Anyway, for (RED) there motivation is to stop AIDS. Its like the Red Cross who is trying to simply help any people after any natural disaster. They are simply a group who wants to help other people.
There are a plenty of firms and organizations whose main focuses are not to maximize the profits, but to aim at other goals such as charity, medical services, and the like, and are so called the non-profitable organizations (NPO). To those non-profitable firms, they do not distribute its surplus funds to owners or shareholders, but instead, use them to help pursue its goals. The non-profitable firms or organizations, the main purpose is to provide the better social welfare, or to tackle those difficulties which cannot be addressed by the government or other profitable enterprises. The non-profitable firms can vary from charities, trade unions, trade associations and public arts organizations. There are many examples such as Ameritrust, Bill and Melinda Gates Foundation, which has an endowment of $38 billion, and the Howard Hughes Medical Institute, which has an endowment of approximately $14.8 billion, and so on. The main reason behind them to produce goods and services is not because of the maximizing of the profits in order to earn more money but to pursue its own purposes rather than profits, which can be a better social benefit, or the charitable activity, and so on.
Some firms produces their goods and services beside the profit and that is for a charity. For example, apple is doing this. If you buy i-pod which color is red, apple will donate some money among their profit. It decreases their profit, but they are doing something good for the society. Even though it doesn't make max profit, they do this for help people.
Firms might be motivated to produce goods and services besides profit maximization by doing it for charity, donations or to help those that are in need or even non-profit organizations.
I believe a good firm that seems to be making a difference in my community is a store called Good Will. The store offers jobs to many of disadvantage citizens and helps them train to better positions. The store also accepts used clothes and items and sells them at a cheap price. This firm helps the community with cheap items and offers jobs for the disadvantage. Manuel Marroquin 003717102
It made me really upset to find I couldn't really think of any firm that is motivated by other things besides maximizing profit. But I would have to say the discussion we had today in class would be relevant to this blog post. Hospitals aren't trying to maximize profits but simply cover their costs that they've incurred from the amount of visits they had. Doctors obviously got into the business to help people (unless they're greedy and only want money) or had to at least have some kind of passion for medicine since they had to endure so much schooling that maximizing their profit isn't their priority. Hospitals can exist as long as they cover their cost and can operate successfully without a positive economic profit.
Another motivation for firms can be charity. For example, Toms shoes, the company donates a pair for every pair that is sold. The man who created this firm wanted to help people in other countries who are less fortunate, tihs is a very worthy motivation for a firm.
Can charitrys be firms, if so then they are examples of nonprofitable firms. There are many companys like toms were you buy one pair of shoes and the other goes to a person in need of shoes. The yoplait yogurt company also donates money to fund breast cancer research for every lid you send to them.
here is an example, some companies sale there product with discont and if customers bring old one to give company back, and they can get new one for a cheap price. for company, they don't waste their money they also get money form their customers.
Some membership shore, like costco they sell cheap goods but in a large quantity. Costco make less profit in each goods, but the large quantity will make the profite more. Even though costco cannot get profit maximization, but a lot of people go there and makes the profit more.
Even though firms like Starbucks set base prices for their goods, they stand by their brand of "responsibility" (http://www.starbucks.com/responsibility). This includes community work (community service & youth, (Starbucks)Red, Starbucks Foundation, and Ethos Water Fund), Ethical Sourcing, Environmentally Friendly, all while trying to keep products healthy. We all know how profitable Starbucks has been throughout the years but it makes me personally proud to consume their products knowing all their efforts.
Some reasons that motivate firms to produce any good is the feeling of doing the best for the people of the society and at the same time accomplish their goals
I found about social enterprises. Their purpose is not to maximize profit, but to realize 'recycle' welfare activity and sustainable economic growth. The typical example is Newman's Own. This company was established by Paul Newman, a famous actor, in 1982. They have been made environmental-friendly salad dressings and donated all the profits they earned. I think it can be a good example for your question.
Energy drinks are one of the most popular firms to produce goods and services within the 21st century such as Monster. 5 Hour Energym Rockstar, Amp, NOS, Redbull, and Crunk. The variety of energy drinks available are targeted for consumers, from children to adults, which I've seen kids as young as the age 10 drinking monsters and adults past 50. The purpose of the energy drinks is to provide a boost of energy instead of drinking other caffeine drinks similar to coffee. As the energy drink expands in supply and demand, many adults have began mixing energy drinks into acoholic beverages. These comapanies are without a doubt successful, however are more harmful than just "crashing," which increase heart strokes and blood sugar, damage kidneys, cause seizures, dehydration, and several other problem, or even worse lead to death when a person exceeds the consumer limit of 250 miligrams per day. I also found a report on google about Monster damaging and eatting away concrete.
One example is increasing the market share because it makes more control on the market by selling more goods and services which is a success without a positive economic profit.
In China, there is an Smile angel Foundation which is set by a super star couple. Because their little daughter has cleft lip and palate and they fight with the ill and finally their daughter become healthy. They set up a foundation and named by their daughter's name so that they can help other kids who has the same ill. This Foundation are operating successfully without positive economic profits. They just want to help more kids who are cleft lip and palate.
So many companies were built in modern society, so many institution that are about charity, education and so on. But some companies also can get more revenue without positive economic profit. For example, united airlines try to give customers suprise once or twice a week. They sell super low price tickets, the tickets are sold very quickly. It looks like UAL doesn't get profit maximization, but they also can get more revenue.
I think there are some companies out there whose main drive is to genuinely produce a good product to its consumers and is a good cause. There is this company called Equal Exchange: Fairly Traded coffee, tea and chocolate. Their company supports small farmer co-ops in places like Latin American, Asia, Africa, and the US creating a 'fair trade' system that benefits both the farmer and consumer. "Equal Exchange's mission is to build long-term trade partnerships that are economically just and environmentally sound, to foster mutually beneficial relationships between farmers and consumers and to demonstrate, through our success, the contribution of worker co-operatives and Fair Trade to a more equitable, democratic and sustainable world." I totally copied and pasted that from their website, but it really seems like their motivation isn't just to gain product but to promote a fair and honest way of doing business!
The only thing I can think of is non profit firms like the red cross. Their main goal is to provide social services and relief efforts to those in need.
there are two reasons that I can think firms would want to make a product other than to maximize profits. One would be a charity that recieves and gives out clothes for free to people in need. the other is to prove that the product that they prove is the best qualtity product around..
I think 90.1 a christian radio station is a good example of a non-profit firm. Just last week this radio station was asking people to donate on a monthly plan of what every they could afford
A firm may be motivated to do so in order to attract people. Whether it'd be to promote the company or a new product, production of goods and services allow the community to stay interested in the company and look forward to what they're going to do next. Most non-profit organization is an example. They produce goods and services only to give back to the community.
wear a LiveStrong wrist band which represents the Lance Armstrong Cancer Foundation. They partenered up with Nike to provide part of the proceeds of their sales to cancer reasearch and programs. It is a very popular marketing tool, and creates revenue for research and the partenrship for research is positive for Nike and Lance Armgstrong.
A reason why a Firm would want to produce a product not for profit maximization would be for a cause. There's many non-profit organizations out there and their goal is mainly to help out a cause. For example, Keep-a-Breast donates their profit to help fight breast cancer, To Write Love On Her Arms was created not to make money but to help prevent teen suicides. These companies are good examples of firms not trying to make a profit.
I believe that even if a firm says it is non- profit or donate to charity, they expect a little extra money on the side. I think the main reason they give to charity is for the PR they would get. When people see that stores are giving back to a community, they are more willing to shop or get a service from that firm. One example is torrid's save the tatas shirt campaign. They lead you to believe that is you by a product with that saying on it that all that would go towards breast cancer awareness. but a portion only goes towards that campaign
A firm that also gives back to the community and not only tries to maximize profits is McDonald. The Ronald McDonald House at the children's hospital in orange county not only gives a place for the parents of sick children to stay for free, but gives out free food and support for those parents/families.
An HR department does not seek profit maximization at all whatsoever. This is perfect example because they provide services to its current staff members or applicants. The motivation is HR would be in the recruiting aspect to hire the right person, for the right job, at the right time, at the right place, for the right compensation. And in the staff portion to oversee all staff in assistance to risk management, new employee orientation, benefits, retirement, ect
I believe most firms exist to maximize profits, but there are always special cases that exist causing a firm to have other motivations. For example take into consideration all of the non profit organizations such as The Red Cross or many church groups that exist to help others. Our uttilities are also another good example because no matter what the economic situation they are in they will always stay in business because it's necessary for our society.
I think that most firms are in the business of maximizing profit but I think one good example of someone doing it for another reason is Toms shoes company. For every pair that they sell, they donate a pair. This company is also donating quite a bit which is why I don't think that they are in it strictly for the money.They also want to help other people in need while being profitable.
Other reasons firms might be motivated to produce goods and services without profit maximization could be a religious organization. They go to other countries offer services and relgion. They do it in hopes of not having losses. It seems as if they barely break even. So, they are motivated by what they believe and want to have others believe in the same. They also get to help people in the process.
many firms operate for other reasons besides profit. For example the michael j. fox foundation is a nonprofit organizations who raises money to find a cure for parkinsons disease. The man who the foundation is named after suffers from this disease and also happens to be one of my favorite actors. the firm doesnt make profit but does operate with the help of donations. other reasons for operating include religious reasons, to get a message out, charity, publicity
Most firms like big corporations and business have their reasons to reach their maximized profit, but other firms that are non profit for example churches, that donate money to other foreign countries that are (under developed) do it for charity. I would agree that most non-profit organizations have do this for a good cause and in general to help out our humane society.
There are other factors that motivates a firm more than economic profit such as charity and helping the world become better. A firm who does this is the American Red Cross.
Of course all firms want to maximize their profits to keep what they do going in the future, but some firms produce goods and services to create a better environment, healthier areas to live in, and create technological advancements. An example would be a solar power firm, such as Siemens, and like all other firms that are trying to find other alternatives to the energy we currently use.
There are many other organizations out there that are not for profit maxmization. Nowadays, there are firms and organization that are non-proft. For example, there are many health related organizations that are non-proft and are intentionally trying to help people and third world countries. Some organizations take donations. One firm that I am very well aware of is the Humane Society I think they are a non-profit organization. They offer help to animals in need. There are other types of forms that they get their profit from and they do so by making money from prescription or checkups on those who want to bring their pets in for a regular checkup etc. There many other reasons why a lot of organizations are non-profit and do not persue the profit maximization rule.
I would say firms might produce goods and services other than for maximization is because to produce profit for good causes. Lets use general mills for example the support donating money to school. There products have boxtops on them that you can mail out to the company to receive money for the school depending on home many boxtops one has. Even though you have to buy there products which helps maximize profit they still are helping and giving back to the community.
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ReplyDeleteIf anything the one main thing that comes to mind is a PR stunt. Like for a cigarette company trying to avoid a lawsuit would start producing products that go towards being healthier for the consumer.
A company may want to produce a good not only for profit but too make the best quality product on the market so everyone wants their things. They may want to just show everyone that their products are top quality.
ReplyDeleteSome firms are non-profitable, like "Good will", they get the old clothes from other person's donate; and resell the clothes to other people. In the end, they give the revenue to the charity. The firm runs very successfully, but it is not positive economic profit.
ReplyDeleteSometime, firms produce some goods even they raise money for charity and contribute their goods for free. This is not a purpose for profit maximization. Some firms want to see long term view and through that they make more profits. These production will make those firms images improve. People can have good images about those firms which give charity under their unconscious. Even though those firms cannot make any profit right now, they can make much more profit in the future. This can be one of factors making production without profit maximization.
ReplyDeleteThis is a good start; we spoke of Kiva in class...what about the RED campaign (Bono)? See if we can generate an interesting list of real examples, ok?
ReplyDeleteA reason to produce a good or service without the idea of maximum profitability is for a promotion. Take McDonald's for example and their McRib sandwich. Their main focus is to get people coming into the door rather than maximizing profit because it costs more to produce this item than does an item that is a typical part of the menu.
ReplyDeleteI think the TOMS company is a good example of a firm that produces goods that don't just go towards maximum profit. I was reading a magazine that interviewed the CEO and founder of TOMS shoes and he said his main motivation was solely after his soul searching trip to Argentina where he felt the need to help the children there, hence the donation of one pair of TOMS shoes to every pair purchased. I hope that is a good example.
ReplyDeleteOne example of a firm that i know that doesn't try to meet profit maximization is red bull. red bull just doesn't make drinks they sponsor just about every action/extreme sport and also the athletes that participate in them. So there whole sport side of the company isnt to make money, they just really want to get Action/extreme sports more in the spot light; and they do this by funneling money into the sports and they do not get returns from that investment.
ReplyDelete-Todd Cullen
One example is Susan G Komen's foundation. This foundation does not earn a profit, it instead funnels all the money is raises and collects to cancer education and research. This foundation was created to improve cancer survivors/victims lives through creating a community of support increase awareness and knowledge and work towards discovering a cure.
ReplyDeleteReasons that might motivate firms to produce goods is to help out the community, helping those in need. Like for example, when people donate clothes, shoes, food..etc
ReplyDeletePersonally i don't think anyone would want to do it other then for profit maximization. But if i had to pick another reason i would say mainly for charities so that they can do good to other people or like for example the celebrities they want to look good in front of there fans and they do stuff like that.
ReplyDeleteI believe companies are always giving back to the community. My father works for a huge Seafood Company names Anthony's Homeport in Seattle. Every year the owner and his family host an auction/dinner and sell tickets at 250 dollars a pop. All the money that is made from the auction and ticket sales is donated to families who lost their spouse, child, etc.
ReplyDeleteI believe every firm has some kind of profit in mind. something that might motivate them could be a charity that they strongly believe in or maybe even something they can put on their taxes. Or just too look good. An example can be, the National breast cancer association.. i think.
ReplyDeleteOne way could be helping those in need. For example doing community service or even donationg things like clothes or even money. Your not being paid to do any of these things but it helps you in the long run. Also running or walking for those who have an illness to raise money.
ReplyDeleteSomething I would say would motivate firms would be enivronmentally concious ideas which are good for both the environment and the consumers. Toms is an example of a company that is both environmentally concious and also concerned about children from a third world country.
ReplyDeleteSometimes firms tend to produce goods and services besides profit maximization.Most likely is because they want to open their market and attract more people to pay attention to their stuff,which will benefit them in the long run. A good example would be discount on new arrivals in the market. Firms lower the prices on purpose not only can motivate more customers to buy but can also increase the quantity being sold. Therefore increase their total revenue in the end.
ReplyDeleteSome firms choose to produce goods and services besides profit maximization for the purpose of there business, for example health clinics. They are for the most part nonprofit and provides goods and services to help those who cant necessarily pay the services they need. They still use money to survive but do not acquire profit from the services.
ReplyDeletethe firm that promotes I<3 boobies wrist band represents brest cancer and it is there to promote and also raise money for the patents. rather then maximizing their profit.
ReplyDeleteWhen it comes to non profit companies the first thing that come to mind is Toms and Livestrong. Toms shoes donate a pair of shoes when you buy one so i think their interest is to help people not to make that much profit. Livestrong is the same way with their wrist bands and other producta that help people with cancer.
ReplyDelete-Robert Arnold
I think firms wants to expand their business and just having the opportunity to get their name out there. It simply starts with a small firms and then it slowly rises even if there is no real profit. Let say an example would be firms that are out there to help cure viruses and diseases. I know the Tom company may be making good profits now but I am sure it started off little and the words got around and thats how the company is where it is now, the Company intentions was to sell shoes so they can afford to send out a pair of shoes to Africa, not much of a profit there right, but as time flew by there are more people buying the products that it is benefiting both the company and Africa.
ReplyDeleteOther reasons firms might be motivated to produce goods and services besides profit maximization are memership, ego, reputation. Some of the sororities on campus produce clothing with there label. This allows people to become aware of the group and possibly join them.I don't believe they are making a big profit from that stuff. They benefit from people become members of there organization.
ReplyDeleteThe one thing that comes in my mind like when businesses give out free goods and services. For example, Starbucks and Krispie Cremes gave out free coffee and donuts if you voted for the presidential election in 2008.Its not because they get free advertisement or because it is cheaper to give out coffee and donuts instead of putting up a costly advertisement on Tv, it's because they care about the president.
ReplyDeleteSometimes companies give discounts on some goods, so many customers come and something that doesn't any discount in order to sell more and make profit. This the main goal for most companies “making profit". However, they are some companies donate each time you buy a product from them. By doing this they get customers and do something good for other. They maximize profit and give something back to how is needing food, close, health caire.....etc. They are many companies do that. That what I heard from other about this issue.
ReplyDeleteIt could be to upbuild the self-esteem of young women & help them to become more courageous like Miss America. The money collected might eventually go to some type of organization, but when watching Miss America it seems as though the competiton gives the young women confidence and helps them to find themselves (personality-wise)
ReplyDeleteI think the public welfare establishments maybe is a good way to let firms produce goods and give a good services. The shoes company that named TOMS may can be a good example for it. When I was buying the shoes from TOMS' online store, the Propagate language and advertising are try to tell us they would be help the kids from the third world country. The public welfare establishments will often be able to promote the company's earnings and also improve the company's reputation and image.
ReplyDeleteA few people have already said it, but TOMS shoes are a great example for this question. The company focuses more on bring shoes to those who don't have any rather than focusing on their profit. Of course, they do need to focus on creating new types of shoes to match more of today's styles, but their main focus is donating those shoes to the less fortunate.
ReplyDeleteI know of the group called (PRODUCT) RED that has hooked up with Nike, Starbucks, Converse, Apple, Gap, Hallmark, Dell, among other corporations in order to raise money to fight and eliminate AIDS in Africa.
ReplyDeleteI don't know anything of how the system works for them but that by buying these (RED) sponsored products, supposedly 100% of the profit will be sent to fight AIDS. Now the (RED) brand is not trying to make profit and probably has all the best intentions to really fight against AIDS but really, they are just a middleman sending money from the consumer of there sponsored products to other groups who may or may not be non-profit to help resolve the AIDS problem.
Anyway, for (RED) there motivation is to stop AIDS. Its like the Red Cross who is trying to simply help any people after any natural disaster. They are simply a group who wants to help other people.
There are a plenty of firms and organizations whose main focuses are not to maximize the profits, but to aim at other goals such as charity, medical services, and the like, and are so called the non-profitable organizations (NPO). To those non-profitable firms, they do not distribute its surplus funds to owners or shareholders, but instead, use them to help pursue its goals. The non-profitable firms or organizations, the main purpose is to provide the better social welfare, or to tackle those difficulties which cannot be addressed by the government or other profitable enterprises. The non-profitable firms can vary from charities, trade unions, trade associations and public arts organizations. There are many examples such as Ameritrust, Bill and Melinda Gates Foundation, which has an endowment of $38 billion, and the Howard Hughes Medical Institute, which has an endowment of approximately $14.8 billion, and so on. The main reason behind them to produce goods and services is not because of the maximizing of the profits in order to earn more money but to pursue its own purposes rather than profits, which can be a better social benefit, or the charitable activity, and so on.
ReplyDeleteSome firms produces their goods and services beside the profit and that is for a charity. For example, apple is doing this. If you buy i-pod which color is red, apple will donate some money among their profit. It decreases their profit, but they are doing something good for the society. Even though it doesn't make max profit, they do this for help people.
ReplyDeleteFirms might be motivated to produce goods and services besides profit maximization by doing it for charity, donations or to help those that are in need or even non-profit organizations.
ReplyDeleteI believe a good firm that seems to be making a difference in my community is a store called Good Will. The store offers jobs to many of disadvantage citizens and helps them train to better positions. The store also accepts used clothes and items and sells them at a cheap price. This firm helps the community with cheap items and offers jobs for the disadvantage.
ReplyDeleteManuel Marroquin
003717102
It made me really upset to find I couldn't really think of any firm that is motivated by other things besides maximizing profit. But I would have to say the discussion we had today in class would be relevant to this blog post. Hospitals aren't trying to maximize profits but simply cover their costs that they've incurred from the amount of visits they had. Doctors obviously got into the business to help people (unless they're greedy and only want money) or had to at least have some kind of passion for medicine since they had to endure so much schooling that maximizing their profit isn't their priority. Hospitals can exist as long as they cover their cost and can operate successfully without a positive economic profit.
ReplyDeleteAnother motivation for firms can be charity. For example, Toms shoes, the company donates a pair for every pair that is sold. The man who created this firm wanted to help people in other countries who are less fortunate, tihs is a very worthy motivation for a firm.
ReplyDeleteCan charitrys be firms, if so then they are examples of nonprofitable firms. There are many companys like toms were you buy one pair of shoes and the other goes to a person in need of shoes. The yoplait yogurt company also donates money to fund breast cancer research for every lid you send to them.
ReplyDeletehere is an example, some companies sale there product with discont and if customers bring old one to give company back, and they can get new one for a cheap price. for company, they don't waste their money they also get money form their customers.
ReplyDeleteSome membership shore, like costco they sell cheap goods but in a large quantity. Costco make less profit in each goods, but the large quantity will make the profite more. Even though costco cannot get profit maximization, but a lot of people go there and makes the profit more.
ReplyDeleteEven though firms like Starbucks set base prices for their goods, they stand by their brand of "responsibility" (http://www.starbucks.com/responsibility). This includes community work (community service & youth, (Starbucks)Red, Starbucks Foundation, and Ethos Water Fund), Ethical Sourcing, Environmentally Friendly, all while trying to keep products healthy. We all know how profitable Starbucks has been throughout the years but it makes me personally proud to consume their products knowing all their efforts.
ReplyDeleteSome reasons that motivate firms to produce any good is the feeling of doing the best for the people of the society and at the same time accomplish their goals
ReplyDeleteI found about social enterprises. Their purpose is not to maximize profit, but to realize 'recycle' welfare activity and sustainable economic growth. The typical example is Newman's Own. This company was established by Paul Newman, a famous actor, in 1982. They have been made environmental-friendly salad dressings and donated all the profits they earned. I think it can be a good example for your question.
ReplyDeleteEnergy drinks are one of the most popular firms to produce goods and services within the 21st century such as Monster. 5 Hour Energym Rockstar, Amp, NOS, Redbull, and Crunk. The variety of energy drinks available are targeted for consumers, from children to adults, which I've seen kids as young as the age 10 drinking monsters and adults past 50. The purpose of the energy drinks is to provide a boost of energy instead of drinking other caffeine drinks similar to coffee. As the energy drink expands in supply and demand, many adults have began mixing energy drinks into acoholic beverages. These comapanies are without a doubt successful, however are more harmful than just "crashing," which increase heart strokes and blood sugar, damage kidneys, cause seizures, dehydration, and several other problem, or even worse lead to death when a person exceeds the consumer limit of 250 miligrams per day. I also found a report on google about Monster damaging and eatting away concrete.
ReplyDeleteOne example is increasing the market share because it makes more control on the market by selling more goods and services which is a success without a positive economic profit.
ReplyDeleteIn China, there is an Smile angel Foundation which is set by a super star couple. Because their little daughter has cleft lip and palate and they fight with the ill and finally their daughter become healthy. They set up a foundation and named by their daughter's name so that they can help other kids who has the same ill. This Foundation are operating successfully without positive economic profits. They just want to help more kids who are cleft lip and palate.
ReplyDeleteSo many companies were built in modern society, so many institution that are about charity, education and so on. But some companies also can get more revenue without positive economic profit. For example, united airlines try to give customers suprise once or twice a week. They sell super low price tickets, the tickets are sold very quickly. It looks like UAL doesn't get profit maximization, but they also can get more revenue.
ReplyDeleteI think there are some companies out there whose main drive is to genuinely produce a good product to its consumers and is a good cause. There is this company called Equal Exchange: Fairly Traded coffee, tea and chocolate. Their company supports small farmer co-ops in places like Latin American, Asia, Africa, and the US creating a 'fair trade' system that benefits both the farmer and consumer.
ReplyDelete"Equal Exchange's mission is to build long-term trade partnerships that are economically just and environmentally sound, to foster mutually beneficial relationships between farmers and consumers and to demonstrate, through our success, the contribution of worker co-operatives and Fair Trade to a more equitable, democratic and sustainable world."
I totally copied and pasted that from their website, but it really seems like their motivation isn't just to gain product but to promote a fair and honest way of doing business!
-Jenna Halili
The only thing I can think of is non profit firms like the red cross. Their main goal is to provide social services and relief efforts to those in need.
ReplyDeletethere are two reasons that I can think firms would want to make a product other than to maximize profits. One would be a charity that recieves and gives out clothes for free to people in need. the other is to prove that the product that they prove is the best qualtity product around..
ReplyDeleteI think 90.1 a christian radio station is a good example of a non-profit firm. Just last week this radio station was asking people to donate on a monthly plan of what every they could afford
ReplyDeleteA firm may be motivated to do so in order to attract people. Whether it'd be to promote the company or a new product, production of goods and services allow the community to stay interested in the company and look forward to what they're going to do next. Most non-profit organization is an example. They produce goods and services only to give back to the community.
ReplyDeletewear a LiveStrong wrist band which represents the Lance Armstrong Cancer Foundation. They partenered up with Nike to provide part of the proceeds of their sales to cancer reasearch and programs. It is a very popular marketing tool, and creates revenue for research and the partenrship for research is positive for Nike and Lance Armgstrong.
ReplyDeleteA reason why a Firm would want to produce a product not for profit maximization would be for a cause. There's many non-profit organizations out there and their goal is mainly to help out a cause. For example, Keep-a-Breast donates their profit to help fight breast cancer, To Write Love On Her Arms was created not to make money but to help prevent teen suicides. These companies are good examples of firms not trying to make a profit.
ReplyDeleteI believe that even if a firm says it is non- profit or donate to charity, they expect a little extra money on the side. I think the main reason they give to charity is for the PR they would get. When people see that stores are giving back to a community, they are more willing to shop or get a service from that firm. One example is torrid's save the tatas shirt campaign. They lead you to believe that is you by a product with that saying on it that all that would go towards breast cancer awareness. but a portion only goes towards that campaign
ReplyDeleteA firm that also gives back to the community and not only tries to maximize profits is McDonald. The Ronald McDonald House at the children's hospital in orange county not only gives a place for the parents of sick children to stay for free, but gives out free food and support for those parents/families.
ReplyDeleteAn HR department does not seek profit maximization at all whatsoever. This is perfect example because they provide services to its current staff members or applicants. The motivation is HR would be in the recruiting aspect to hire the right person, for the right job, at the right time, at the right place, for the right compensation. And in the staff portion to oversee all staff in assistance to risk management, new employee orientation, benefits, retirement, ect
ReplyDeleteI believe most firms exist to maximize profits, but there are always special cases that exist causing a firm to have other motivations. For example take into consideration all of the non profit organizations such as The Red Cross or many church groups that exist to help others. Our uttilities are also another good example because no matter what the economic situation they are in they will always stay in business because it's necessary for our society.
ReplyDelete-Matthew Smith
I think that most firms are in the business of maximizing profit but I think one good example of someone doing it for another reason is Toms shoes company. For every pair that they sell, they donate a pair. This company is also donating quite a bit which is why I don't think that they are in it strictly for the money.They also want to help other people in need while being profitable.
ReplyDeleteOther reasons firms might be motivated to produce goods and services without profit maximization could be a religious organization. They go to other countries offer services and relgion. They do it in hopes of not having losses. It seems as if they barely break even. So, they are motivated by what they believe and want to have others believe in the same. They also get to help people in the process.
ReplyDeletemany firms operate for other reasons besides profit. For example the michael j. fox foundation is a nonprofit organizations who raises money to find a cure for parkinsons disease. The man who the foundation is named after suffers from this disease and also happens to be one of my favorite actors. the firm doesnt make profit but does operate with the help of donations. other reasons for operating include religious reasons, to get a message out, charity, publicity
ReplyDeleteMost firms like big corporations and business have their reasons to reach their maximized profit, but other firms that are non profit for example churches, that donate money to other foreign countries that are (under developed) do it for charity. I would agree that most non-profit organizations have do this for a good cause and in general to help out our humane society.
ReplyDeleteThere are other factors that motivates a firm more than economic profit such as charity and helping the world become better.
ReplyDeleteA firm who does this is the American Red Cross.
-German Coreas
Of course all firms want to maximize their profits to keep what they do going in the future, but some firms produce goods and services to create a better environment, healthier areas to live in, and create technological advancements. An example would be a solar power firm, such as Siemens, and like all other firms that are trying to find other alternatives to the energy we currently use.
ReplyDeleteThere are many other organizations out there that are not for profit maxmization. Nowadays, there are firms and organization that are non-proft. For example, there are many health related organizations that are non-proft and are intentionally trying to help people and third world countries. Some organizations take donations. One firm that I am very well aware of is the Humane Society I think they are a non-profit organization. They offer help to animals in need. There are other types of forms that they get their profit from and they do so by making money from prescription or checkups on those who want to bring their pets in for a regular checkup etc. There many other reasons why a lot of organizations are non-profit and do not persue the profit maximization rule.
ReplyDeleteI would say firms might produce goods and services other than for maximization is because to produce profit for good causes. Lets use general mills for example the support donating money to school. There products have boxtops on them that you can mail out to the company to receive money for the school depending on home many boxtops one has. Even though you have to buy there products which helps maximize profit they still are helping and giving back to the community.
ReplyDeleteKayla Snipes