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Osokin, N. A. "Win vs. Profit maximization: optimal strategy for managing organizational performance of russian football clubs." Strategic decisions and risk management, no. 2 (July 15, 2018): 86–91. http://dx.doi.org/10.17747/2078-8886-2018-2-86-91.
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The cause-effect relationships between performance dimensions were assessed using a multivariate linear regression. The author analyzes the strategic behavior of Russian football clubs using the profit/win maximization classification. The causality tests allowed the author to form a conceptual model of the main performance dimensions of professional football clubs in Russia. The results help better understand the managerial pitfalls in Russian club football. The article contributes to the literature on organizational performance of professional football clubs by focusing on the Russian context, which has not been done previously. The findings of the paper confront the managerial fallacies of Russian club football and broaden the understanding of club football management practices in general.
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Garcia-del-Barrio, Pedro, and Stefan Szymanski. "Goal! Profit Maximization Versus Win Maximization in Soccer." Review of Industrial Organization 34, no. 1 (2009): 45–68. http://dx.doi.org/10.1007/s11151-009-9203-6.
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Prinz, Aloys L. "Indirect Evolution and Aggregate-Taking Behavior in a Football League: Utility Maximization, Profit Maximization, and Success." Games 10, no. 2 (2019): 22. http://dx.doi.org/10.3390/g10020022.
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An evolutionary model of European football was applied to analyze a two-stage indirect evolution game in which teams choose their utility function in the first stage, and their optimal talent investments in the second stage. Given the second-stage optimal aggregate-taking strategy (ATS) of talent investment, it was shown that teams may choose a mix of profit or win maximization as their objective, where the former is of considerably higher relevance with linear weights for profits, and is more successful in the utility function. With linear weights for profit and win maximization, maximizing profits is the only evolutionarily stable strategy (ESS) of teams. The results change if quadratic weights for profits and wins are employed. With increasing talent productivity, win maximization dominates in the static and in the dynamic versions of the model. As a consequence, it is an open question whether the commercialization of football (and other sports) leagues will lead to more profit or win maximization.
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Terrien, Mickael, Nicolas Scelles, Stephen Morrow, Lionel Maltese, and Christophe Durand. "The win/profit maximization debate: strategic adaptation as the answer?" Sport, Business and Management: An International Journal 7, no. 2 (2017): 121–40. http://dx.doi.org/10.1108/sbm-10-2016-0064.
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Purpose The purpose of this paper is twofold. First, to highlight the heterogeneity of the organizational aims within the professional football teams in Ligue 1. Second, to understand why some teams swing from a win orientation towards a soft budget constraint from year to year, and vice versa. Design/methodology/approach Financial data from annual reports for the period 2005/2015 was collected for the 35 Ligue 1 clubs. To define the degree of compliance with the intended strategy for those clubs, an efficiency analysis was conducted thanks to the data envelopment analysis method. This measure of performance was supplemented with the identification of productivity and demand shocks to identify whether clubs suffered from such shock or changed their strategy. It enables to precise the nature of the evolution in the utility function, with regards to the gap between expectation and actual performance. Findings The paper suggests that a team can switch from one orientation to another from year to year due to the uncertain nature of the sports industry. The club director’s utility function could also be maximized under inter temporal budget function in order to adjust the weight between win and profit according to the opportunities in the environment. Originality/value The paper sheds new light on the win/profit maximization. The theoretical model provides an assessment of the weight between win and profit in Ligue 1 and then identifies a new explanation for persistent losses in the sports industry.
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Hwang, Yu, Issac Sim, Young Sun, Heung-Jae Lee, and Jin Kim. "Game-Theory Modeling for Social Welfare Maximization in Smart Grids." Energies 11, no. 9 (2018): 2315. http://dx.doi.org/10.3390/en11092315.
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In this paper, we study the Stackelberg game-based evolutionary game with two players, generators and energy users (EUs), for monetary profit maximization in real-time price (RTP) demand response (DR) systems. We propose two energy strategies, generator’s best-pricing and power-generation strategy and demand’s best electricity-usage strategy, which maximize the profit of generators and EUs, respectively, rather than maximizing the conventional unified profit of the generator and EUs. As a win–win strategy to reach the social-welfare maximization, the generators acquire the optimal power consumption calculated by the EUs, and the EUs obtain the optimal electricity price calculated by the generators to update their own energy parameters to achieve profit maximization over time, whenever the generators and the EUs execute their energy strategy in the proposed Stackelberg game structure. In the problem formulation, we newly formulate a generator profit function containing the additional parameter of the electricity usage of EUs to reflect the influence by the parameter. The simulation results show that the proposed energy strategies can effectively improve the profit of the generators to 45% compared to the beseline scheme, and reduce the electricity charge of the EUs by 15.6% on average. Furthermore, we confirmed the proposed algorithm can contribute to stabilization of power generation and peak-to-average ratio (PAR) reduction, which is one of the goals of DR.
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Suvakovic, Djordje,, and Goran Radosavljevic. "Monopsony in the labor market: Profit vs. Wage maximization." Ekonomski anali 52, no. 173 (2007): 7–35. http://dx.doi.org/10.2298/eka0773007s.
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This paper compares the efficiency of profit- and wage-maximizing (PM and WM) monopsony in the labor market. We show that, both locally and globally, a PM monopsony may well be dominated by its WM twin, where the local and global dominance are defined with respect to a single (inverse) labor supply function and a single family of such functions. This family is always divided in the two disjoint (sub)families of the PM and WM dominance. We also analyze some major factors that explain the size of these (sub)families. .
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Fung, K. K., Sri Harsha Kolar, and Pavan R. Karnam. "Profit Versus Efficiency Maximization (Single vs. Discriminating Pricing)—Flash Animation." Journal of Economic Education 37, no. 4 (2006): 484. http://dx.doi.org/10.3200/jece.37.4.484-484.
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D’Souza, Márcia Figueredo, Gerlando Augusto Sampaio Franco de Lima, Daniel N. Jones, and Jessica R. Carré. "Do I win, does the company win, or do we both win? Moderate traits of the Dark Triad and profit maximization." Revista Contabilidade & Finanças 30, no. 79 (2019): 123–38. http://dx.doi.org/10.1590/1808-057x201806020.
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ABSTRACT This article analyzes the relationship between the maximization of personal and company gains and the moderate traits of the Dark Triad. The relevance of choosing this topic lies in investigating the attitude of executives who exhibit characteristics of a moderate intensity between the strong and weak traits. It is proven that the vision and charisma of narcissistic individuals, the strategy and tactics of Machiavellian individuals, and the creativity and good strategic thinking of psychopathic individuals are differentiating characteristics that enhance successful and integrative leadership and that are far from the more accentuated and opportunistic attitudes related to the strong traits, whose practices involve dishonest actions for personal gain. This evidence creates the possibility for strengthening the research in the accounting area, especially on the behavioral approach, in order to promote its interface with psychology and clarify how personality, values, and experiences influence managers’ choices when conducting business and how workers and companies are impacted by these decisions. The study is empirical-theoretical and involves 263 managers, adopting a survey as its data collection strategy and applying a self-reporting type questionnaire. The data analysis approaches included descriptive statistics, correlations, tests of means, and logistic regressions. In this study, managers with moderate psychopathic traits showed a lower tendency to maximize profit by manipulating results. An opposite tendency was revealed for those with moderate Machiavellian traits. The combined effect of the three Dark Triad traits was significant and positive, revealing opportunistic profit maximization. These findings contribute to future studies that aim to systematically analyze moderate levels of the triad and corroborate the findings that have revealed the common characteristics of manipulation, callousness, and dishonesty when investigating the interactive effect between the traits in question.
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Hamill, Allan S., Susan E. Weaver, Peter H. Sikkema, Clarence J. Swanton, Francois J. Tardif, and Gabrielle M. Ferguson. "Benefits and Risks of Economic vs. Efficacious Approaches to Weed Management in Corn and Soybean." Weed Technology 18, no. 3 (2004): 723–32. http://dx.doi.org/10.1614/wt-03-166r.
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A 3-yr study was conducted on nine farms across southern Ontario to evaluate the risks and benefits of different approaches to weed management in corn and soybean. Weed control decisions were based on field scouting and recommendations from the Ontario version of HADSS™, the herbicide application decision support system. Treatments were selected to maximize profit (economic threshold approach) or to maximize yield (highest treatment efficacy). Reduced rates of the high efficacy treatment for each field also were included. Weed density before and after treatment, crop yields, weed seed return, and the effect of weed control decisions on weed density 1 yr after treatment were assessed. Crop yield varied among years and farms but was not affected by weed control treatment. Weed control at 28 d after treatment (DAT) was often lower and weed density, biomass, and seed production 70 DAT were often higher with the profit maximization approach compared with the yield maximization approach. However, weed density 1 yr later, after each cooperator had applied a general weed control program, did not vary significantly among the previous year's weed control treatments. Reduced rates of the high efficacy treatments did not lead to increased weed problems the next year, despite lower weed control and increased weed seed production in some years. During the 3 yr of the study, weed control costs with the profit maximization approach were approximately Can$45/ha less than with the yield maximization approach.
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Otaki, Atsushi, Kiyohiko Hattori, and Keiki Takadama. "Toward Strategic Human Skill Development Through Human and Agent Interaction: Improving Negotiation Skill by Interacting with Bargaining Agent." Journal of Advanced Computational Intelligence and Intelligent Informatics 14, no. 7 (2010): 831–39. http://dx.doi.org/10.20965/jaciii.2010.p0831.
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This paper focuses on developing human skills through interaction between a human player and a computer agent, and explores its strategic method through experiments on the bargaining games where human players negotiate with computer agents. Specifically, human players negotiate with three types of agents: (a) strong/weak attitude agents making aggressive/defensive proposals in advantageous/disadvantageous situations; (b) fair agents making fair proposals; and (c) the “human-like” agents making mutually agreeable proposals as the number of games increases. Analysis of the human subject experiments has revealed the three major implications: (1) human players negotiating with the strong/weak attitude agents obtain the largest profit overall; (2) human players negotiating with “human-like” agents win many games; and (3) no relationship exists between profit maximization and a win of the games.
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Sheppard, Eric, and Trevor J. Barnes. "Instabilities in the Geography of Capitalist Production: Collective Vs. Individual Profit Maximization." Annals of the Association of American Geographers 76, no. 4 (1986): 493–507. http://dx.doi.org/10.1111/j.1467-8306.1986.tb00132.x.
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Chang, Yang-Ming, Joel M. Potter, and Shane Sanders. "Inelastic sports ticket pricing, marginal win revenue, and firm pricing strategy." Managerial Finance 42, no. 9 (2016): 922–27. http://dx.doi.org/10.1108/mf-02-2016-0047.
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Purpose A standard result of firm theory is that a monopoly maximizes profit somewhere along the elastic portion of its demand curve. However, empirical studies of sports ticket pricing routinely find that (home) teams price along the inelastic portion of demand. Despite compelling theoretical explanations of this finding, at least one important factor remains unconsidered. A profit-maximizing team considers not only direct marginal revenue and direct marginal cost when setting a ticket price but also deferred, strategic benefit (revenue) from present game success. The paper aims to discuss these issues. Design/methodology/approach Prior literature finds that a given win is valued in that it generates additional future revenue and likelihood of home victory rises, ceteris paribus, in crowd density. The authors construct a firm profit maximization problem in which a sports team considers both present and future revenue when pricing home games in the present period. Findings If the deferred benefit is sufficiently large, a forward-looking, profit-maximizing team prices along the inelastic portion of its static demand curve. Importantly, this same price falls along the elastic portion of the firm’s (empirically unobserved) dynamic demand curve. Originality/value This is the first model of sports ticket pricing to recognize the intertemporal nature of demand for a sports match.
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Datta, Y. "Friedman Doctrine: Maximizing Profits is Neither Good for Society Nor Even for the Shareholders." Journal of Economics and Public Finance 7, no. 3 (2021): p153. http://dx.doi.org/10.22158/jepf.v7n3p153.
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This paper is an attempt at a critique of Milton Friedman’s article titled: “A Friedman doctrine—The Social Responsibility of Business is to Increase Its Profits” published in the New York Times Magazine fifty years ago. The publication of this doctrine sparked a revolution. Ronald Reagan found it a powerful platform from which to launch his radical free-market agenda. The event marked a turning point when America embarked on a journey towards unfettered capitalism.Encouraged by the Friedman doctrine American CEOs chose a path toward profit maximization/maximizing shareholder value: a mindset that favored risk aversion and a short-term focus on cost reduction vs. long-term need for innovation, quality and customer satisfaction. And it is this historic psychological shift that has contributed so much to America’s industrial decline.Economic inequality in America has been going up persistently since 1974, squeezing the middle class. America’s income inequality has now widened so much that it rivals the highest level recorded in 1928 that led to the Great Depression of 1929. Friedman’s essay has three major flaws. First, it is offered as a doctrine not a theorem. Second, it is grounded in the moral philosophy of self-interest—and greed. Third, it does not distinguish between short-term and long-term shareholders.Friedman’s theory of profit maximization is too difficult, too unrealistic--and immoral.Based on an extensive analysis, we have come to the conclusion that profit maximization is neither good for society nor even for the shareholders.
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Feng, Dingzhong, Lei Ma, Yangke Ding, Guanghua Wu, and Ye Zhang. "Decisions of the Dual-Channel Supply Chain under Double Policy Considering Remanufacturing." International Journal of Environmental Research and Public Health 16, no. 3 (2019): 465. http://dx.doi.org/10.3390/ijerph16030465.
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Considering the preference of green consumers for remanufactured products, a dual-sale-channel supply chain model with government non-intervention, government remanufacturing subsidy policy, and carbon tax policy is constructed, respectively. The difference of the optimal decision between the firm and the government under the two policies is discussed in this paper. Meanwhile, we analyze the influence of green consumers on the government’s optimal decision, based on social welfare maximization. It is found that without government intervention, social welfare is the lowest. The carbon tax policy is better when the proportion of green consumers and the environmental coefficient are extreme or moderate at the same time. Otherwise, the subsidy policy is better. The carbon tax policy is more effective than the subsidy policy in controlling carbon emissions. Profit-sharing contracts should be established by enterprises and governments to achieve win–win results.
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Kang, Kai, Xinfeng Luan, Wenjing Shen, Yanfang Ma, and Xuguang Wei. "The Strategies of the Poverty-Alleviation Supply Chain with Government Subsidies and Cost Sharing: Government-Led or Market-Oriented?" Sustainability 12, no. 10 (2020): 4050. http://dx.doi.org/10.3390/su12104050.
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Alleviating poverty is a critical problem in many developing countries such as China. In this paper, we consider a poverty-alleviation supply chain composed of one supplier in a poor area and one producer helping the supplier reduce poverty by fulfilling Corporate Social Responsibility (CSR). Our work aims at examining the impacts of government subsidies and Corporate Social Responsibility (CSR) on the poverty-alleviation operations. Four game-theoretic models are constructed and analyzed to investigate the impacts of coefficients of government subsidies and CSR cost sharing on the supplier’s and producer’s profits, social welfare growth, CSR level, wholesale price, output of the supplier, and retail price. Our findings suggest that the most effective poverty-alleviation mechanism in most cases is the combination of government subsidies and market efforts. Contrary to common beliefs that companies have to sacrifice profit for social responsibility, we show that poverty alleviation is reconcilable with profit maximization and social welfare improvement, and companies can achieve a win-win situation of both poverty alleviation and profitability. Our work provides new insights for sustainable poverty alleviation and socially sustainable operations.
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Rascher, Daniel A., Mark S. Nagel, Matthew T. Brown, and Chad D. McEvoy. "Free Ride, Take It Easy: An Empirical Analysis of Adverse Incentives Caused by Revenue Sharing." Journal of Sport Management 25, no. 5 (2011): 373–90. http://dx.doi.org/10.1123/jsm.25.5.373.
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A fundamental belief in professional sport leagues is that competitive balance is needed to maximize demand and revenues; therefore, leagues have created policies attempting to attain proper competitive balance. Further, research posits that objectives of professional sport teams’ owners include some combination of winning and profit maximization. Although the pursuit of wins is a zero sum game, revenue generation and potential profit making is not. This article focuses upon the National Football League’s potential unintended consequences of creating the incentive for some teams to free ride on the rest of the league’s talent and brand. It examines whether an owner’s objectives to generate increased revenues and profits are potentially enhanced by operating as a continual low-cost provider while making money from the shared revenues and brand value of the league. The present evidence indicates that, overall, being a low-cost provider is more profitable than increasing player salaries in an attempt to win additional games.
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Perera, Indika. "Impact of Poor Requirement Engineering in Software Outsourcing: A Study on Software Developers’ Experience." International Journal of Computers Communications & Control 6, no. 2 (2011): 337. http://dx.doi.org/10.15837/ijccc.2011.2.2182.
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The software Requirement Engineering (RE) is one of the most important and fundamental activities in the software life cycle. With the introduction of different software process paradigms, the Requirement Engineering appeared in different facets, yet remaining its significance without a doubt. The software development outsourcing is considered as a win-win situation for both developed and developing countries. High numbers of low paid, yet talented workforce in developing countries could be employed for software outsourcing projects with the demanding power of the outsourcer to decide the projects, their scope and priorities with the intention of profit maximization. This study was conducted to analyze the impact of poor Requirement Engineering in outsourced software projects from the developers’ context (sample size n = 57). It was identified that the present outsourcing scenario has created to have frequent requirement changes, shrunk design and stretched development phases, and frequent deliverables, which have to be accommodated by the software developer with extra effort and commitment beyond the project norms. The results reveal important issues and open policy level discussions while questioning our insights on the outsourcing benefits as a whole.
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Wenz, Michael G. "A Proposal for Incentive-Compatible Revenue Sharing in Major League Baseball." Journal of Sport Management 26, no. 6 (2012): 479–89. http://dx.doi.org/10.1123/jsm.26.6.479.
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This paper proposes a payroll tax and revenue sharing model for Major League Baseball that better aligns the incentives of individual team owners with league-wide goals of competitive balance and cartel profit maximization. The author demonstrates why the current system is poorly suited for improving competitive balance, then argue for a system of transfer payments based on a more aggressive payroll tax combined with a subsidy distributed based on on-field performance rather than market size or financial performance. High-payroll teams would contribute disproportionately to the revenue-sharing pool, while successful teams would receive disproportionately large subsidies. By increasing the marginal value of a win through the performance-based subsidies, small-market teams will see increased incentives to invest in playing talent. The author presents some limited financial data and suggest how to calibrate the model to yield the optimal level of competitive balance and optimal revenue split between players and owners.
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Rana, Muhammad Habib, and Muhammad Shaukat Malik. "Impact of human resource (HR) practices on organizational performance." International Journal of Islamic and Middle Eastern Finance and Management 10, no. 2 (2017): 186–207. http://dx.doi.org/10.1108/imefm-04-2016-0060.
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Purpose The purpose of this paper is to establish the impact of human resource (HR) practices on organizational performance and moderating effect of Islamic principles on the impact in Pakistani business organizations. It aims at finding efficacy of HR practices as well as the role of Islamic teachings in business. Design/methodology/approach Five broad categories of HR practices: selection, training, compensation, performance appraisal and employee participation, have been taken as independent variables and their impact has been assessed on organizational performance: dependent variable, keeping the application of the Islamic principles as moderating variable. Data were collected from employees of mobile telecommunication service providers operating in Pakistan through a questionnaire based on a 5-point Likert scale and then analyzed in SPSS. Findings HR practices, including selection, training, compensation, performance appraisal and employee participation, have been found to be significantly and positively related to organizational performance. Moderation by the application of Islamic principles was observed to be positive. Its magnitude generally displayed decreasing trend with an increase in level of application. Research limitations/implications Measurement of Islamic work ethics and organizational performance has been unidirectional, gauged only on the basis of employees’ judgment. Inclusion of organizational and market data in future studies will add to the value of the outcome. Understudy business organizations grudgingly provided required information, in spite of personal connections and liaison, because of their organizational policies, commitments and limited concern with the research. Lists of employees were not shared with the researchers, which left only the option of convenient sampling. More reliable sampling techniques are recommended for future research on the subject. Moreover, the sampling frame was limited to the province of Punjab because of shortage of resources. Future research on the subject is suggested to have a broader base, including organizations interested to participate in the exercise of research. Practical implications Outcome of the study will provide useful guidelines to the business organizations by clarifying whether business is a religion-neutral affair or not. It is also expected to provide a line of thought for self-assessment and improvement. The concept of maximization of profit for a business organization can be evolved to a win–win arrangement by the maximization of benefit for all stakeholders. This is a logical and certain outcome once a business organization takes care of its employees, society, environment and, definitely, its shareholders. Originality/value A few studies exist on human resource management in Islamic as well as Pakistani context; however, the role of the religion and its contribution toward organizational performance has not been amply crystallized. This is just an endeavor in hitherto less frequented direction.
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Ardhianto, Rifki, and Lathifah Hanim. "PERAN NOTARIS DALAM PERJANJIAN WARALABA ANTARA PT POS INDONESIA (PERSERO) PATI DENGAN BADAN USAHA PERSEORANGAN." Jurnal Akta 4, no. 1 (2017): 83. http://dx.doi.org/10.30659/akta.v4i1.1748.
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ABSTRACTThis study aims to determine the implementation and analyze the role of notary in a franchise agreement between PT Pos Indonesia (Persero) Pati with individual business entities, obstacles and solutions in the implementation of franchise agreement between PT Pos Indonesia (Persero) Pati with individual business entities and legal effects if the agreement A franchise between PT Pos Indonesia (Persero) Pati and individual business entities are not made by notarial deed.Method This research is empirical law research method, that is research based on implementation in effort to get primary data preceded by library research to get secondary data. The research was conducted at PT Pos Indonesia (Persero) Pati, and the overall data obtained was analyzed qualitatively.The results showed that the implementation and analysis of the role of notary in a franchise agreement between PT Pos Indonesia (Persero) Pati and individual business entities are agreements that are not contradictory to the law, religion, public order and morality. This means that the franchise agreement is valid and therefore the agreement becomes a law for those who make it, and binds both parties and the agreement is a standard reciprocal agreement because each party has equal rights and obligations put forward the principle of win-win solution Which are mutually beneficial. The obstacles that exist are the frenchisee can do wanprestasi which result in frenchisor loss. The solution is a franchisee before deciding to franchise must adjust to the franchise recipient character.Against the legal consequences that arise as a transaction that breeds the agreement, the franchise invariably involves two parties with independent interests and sometimes opposites. The principle of profit maximization is also essentially a source of differences in interests and disputes that can occur between the two parties. This great advantage can only be achieved by both parties if both parties can establish a mutually beneficial synergism.Keywords: Notary, Franchise Agreement, Individual Business Agency
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Wansleben, Leon. "Consistent Forecasting vs. Anchoring of Market Stories: Two Cultures of Modeling and Model Use in a Bank." Science in Context 27, no. 4 (2014): 605–30. http://dx.doi.org/10.1017/s0269889714000222.
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ArgumentIt seems theoretically convenient to construe knowledge practices in financial markets and organizations as “applied economics.” Alternatively or additionally, one might argue that practitioners draw on economic knowledge in order to systematically orient their actions towards profit-maximization; models, then, are understood as devices that make calculative rationality possible. However, empirical studies do not entirely confirm these theoretical positions: Practitioners’ actual calculations are often not “framed” by models; organizations and institutions influence the choice and adoption of models; and different professional groups in financial markets have diverging attitudes towards model calculations. In order to account for this diversity, this article proposes the concept of cultures of economic and financial expertise; the concept focuses on the patterns of knowledge practices and knowledge-related self-definitions of groups within financial organizations and markets; it also facilitates an analysis of the relations between and, more specifically, the hierarchies among different practices and identities. The article then goes on to explore the process of foreign exchange forecasting in a particular bank. The description immediately reveals that two groups are involved in this process: economists and analysts. These groups maintain quite different practices and self-descriptions in relation to models: While the economists in the bank use the models as organizational resources for consistent forecasting procedures and observe data with the help of simple model structures, analysts approach model forecasts from the perspective of critics: They see limits in the variable-centered, as opposed to a “thematic” approach and they disregard a model's imposed temporality. Nevertheless, analysts use model forecasts as anchors for developing their own “paths” and stories about possible future expectation changes in the markets. The specific division of labor between economists and analysts, and specifically the dominant role of analysts in the forecasting process, fit into a larger picture: The rise of institutional investors in the foreign exchange markets and their demand for genuine market knowledge for speculative investment projects has contributed to the rise and dominance of analysts’ culture.
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Florio, Massimo, Matteo Ferraris, and Daniela Vandone. "Motives of mergers and acquisitions by state-owned enterprises." International Journal of Public Sector Management 31, no. 2 (2018): 142–66. http://dx.doi.org/10.1108/ijpsm-02-2017-0050.
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Purpose This paper looks at state-owned enterprises (SOEs) from the angle of the market for corporate control and analyzes in detail the reported rationales of a sample of 355 mergers and acquisition (M&A) deals performed by SOEs as acquirers over the period 2002-2012. The purpose of this paper, after having created a taxonomy of deal motivations, is to empirically test two alternative hypotheses: deviation vs convergence of M&A deal rationales between state-owned and private enterprises. Design/methodology/approach The data set is obtained by combining firm-level information from two sources, Zephyr and Orbis (Bureau Van Dijk). A recursive algorithm is developed to infer the ownership nature of the enterprises at the time the deal took place and then the authors double-checked the identity of the global ultimate owner by visual inspection of all the available information. Motivations are analyzed through a case-by-case analysis and classified into several categories, thereby providing a taxonomy of rationales behind SOE M&As and discussing their differences and similarities relative to private firms. Findings More than 60 percent of the deals performed by SOEs as acquirers are driven by “shareholder value maximization” motives, similarly to private enterprise acquirers. The other 40 percent of deals are almost equally spread among three rationales that specifically relate to the role of modern state capitalism in the economy. “Financial distress” motivation, which is the only one clearly deviating from the objectives of profit maximization typical of private ownership, is far less important than the others. Research limitations/implications The paper does not analyze the case studies in detail. Neither does it correlate the evidence with the quality of corporate governance or the quality of institutions in the country. This would be interesting in order to discover whether the alignment of objectives between public and private enterprises is enhanced by certain features of public sector management, as suggested by the OECD (2015) Guidelines. Practical implications The paper suggests some policy implications in terms of reforms of the corporate governance of the SOEs and accountability of their management against clearly stated public missions. It also calls for the need for citizens to be informed in a transparent way about the rationales of major M&A deals when a SOE is on the acquirer side, and the consistency of such rationales with the mission assigned by governments to the enterprises they own. Finally, it underlines that regulatory concerns raised in many countries by the rise of cross-border SOE M&As are in most of the cases unfounded. Originality/value Existing literature has mainly focused on private corporate M&A deals or has just disregarded the ownership status of the acquiring firm. This paper focuses on the motivations for SOE deals in order to elaborate a taxonomy of SOE deal rationales and to identify the differences and similarities between private corporate firms.
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Resende, Camilo B., C. Grace Heckmann, and Jeremy J. Michalek. "Robust Design for Profit Maximization With Aversion to Downside Risk From Parametric Uncertainty in Consumer Choice Models." Journal of Mechanical Design 134, no. 10 (2012). http://dx.doi.org/10.1115/1.4007533.
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In new product design, risk averse firms must consider downside risk in addition to expected profitability, since some designs are associated with greater market uncertainty than others. We propose an approach to robust optimal product design for profit maximization by introducing an α-profit metric to manage expected profitability vs. downside risk due to uncertainty in market share predictions. Our goal is to maximize profit at a firm-specified level of risk tolerance. Specifically, we find the design that maximizes the α-profit: the value that the firm has a (1 − α) chance of exceeding, given the distribution of possible outcomes. The parameter α ∈ (0,1) is set by the firm to reflect sensitivity to downside risk (or upside gain), and parametric study of α reveals the sensitivity of optimal design choices to firm risk preference. We account here only for uncertainty of choice model parameter estimates due to finite data sampling when the choice model is assumed to be correctly specified (no misspecification error). We apply the delta method to estimate the mapping from uncertainty in discrete choice model parameters to uncertainty of profit outcomes and identify the estimated α-profit as a closed-form function of decision variables for the multinomial logit model. An example demonstrates implementation of the method to find the optimal design characteristics of a dial-readout scale using conjoint data.
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Yu, Yugang, Xin Zhang, Xiong Zhang, and Wei T. Yue. "Is smart the new green? The impact of consumer environmental awareness and data network effect." Information Technology & People ahead-of-print, ahead-of-print (2021). http://dx.doi.org/10.1108/itp-10-2020-0680.
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PurposeNew information technologies such as IoT and big data analytics have reshaped the development of smart green products. These products exhibit two important features that are not seen in traditional products: environmental friendliness and data network effect. Based on these unique features, the authors investigate a firm's optimal selling strategy of smart green products from both the profitability and environmental perspectives.Design/methodology/approachThe authors establish stylized models to consider the optimality of three selling strategies: (1) traditional strategy – only offering traditional products, (2) green strategy – only offering smart green products, and (3) hybrid strategy – offering both traditional and smart green products.FindingsThe authors’ analysis shows that in the absence of data network effect, there will always be a conflict between profit maximization and environmental protection. However, a strategy that benefits both the firm and the environment exists when data network effect is present. Interestingly, hybrid and traditional strategies can be win-win strategies, but the green strategy cannot. Also surprisingly, the green strategy may harm the environment more as smart products become greener.Originality/valueThis study examines the economic and environmental implications of selling smart green products, and contributes to existing literature on sustainable operations and green product design by incorporating the impact of both consumer environmental awareness and data network effect. The authors’ findings shed light on how to coordinate the profitability and environmental impact of selling smart green products in the era of big data and IoT.
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Frey, L. M. (Malini), and Meera S. R. "Language of the Heart: Profit-Oriented Management vs Spiritual Values for Quality Treatment and Cost Containment in Health Care." Purushartha - A Journal of Management , Ethics and Spirituality 10, no. 1 (2017). http://dx.doi.org/10.21844/pajmes.v10i1.7798.
Full textAbstract:
Organizational unrestrained greed is spreading throughout the world causing harm to millions of people and the environment, leading to a loss of trust in business, and can create particular havoc in the health care system. Stemming from a domineering, exclusive paradigm of profit-maximization, it serves a few at the expense of many. Replacing this outdated model with mediating higher spiritual principles that represent dharma, discrimination, and compassion, is necessary to heal the wounds inflicted upon the world by greed, to resurrect quality and affordable health care, and to reshape and redirect firm objectives. Drawing from the Bhagavad Gita we explore the nature of greed and destructiveness and then offer three propositions: 1) conditions influencing organizational greed are fueled by unrestrained desires; 2) profit-oriented health care increases risks of patient exploitation and decreases quality of care, and 3) spiritual-value driven leadership in health care is more inclusive, enhancing patient care, providing cost containment, and hospital prosperity. Evidence supports the perspective that spiritual leadership in health care is greatly advantageous in advancing far-reaching optimal care and in promoting dynamic, creative success. Finally, a noteworthy unanticipated theme emerged that the absence or presence of awareness of the interconnectedness of all beings appeared to influence managerial behaviors. Those with no awareness engaged in destructive, greed-induced behaviors, and those with awareness inspired wholesome, uplifting behaviors that served many.
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Thai, Tram T. N., Danny G. Le Roy, Manjula S. Bandara, James E. Thomas, and Francis J. Larney. "Economic optimum plant density of irrigated early-maturity soybean in southern Alberta." Canadian Journal of Plant Science, July 22, 2021. http://dx.doi.org/10.1139/cjps-2021-0026.
Full textAbstract:
With soybean [Glycine max (L.) Merr.] seed cost increasing in Alberta, understanding economic optimum plant density (EOPD) could help growers save on input expenses. A study was conducted at two irrigated locations in southern Alberta (Bow Island and Lethbridge), in three growing seasons (2014–16), using two maturity group (MG) 00 soybean genotypes, two row spacings (RS; narrow, 17.5 cm; wide, 35 cm), and three seeding densities (SD; 30, 50 and 80 seeds m-2). Exponential plant density-yield relationships were used to estimate EOPD. The earlier MG 00.4 genotype compensated yield at lower plant density (39 vs. 43 plants m-2) and emergence (74 vs. 80%) than the later MG 00.8 genotype. The EOPD gaps between environments, genotypes, and RS were minimal (from 1–3 plants m-2), resulting in only 1.3–2.0% differences in grain yield (37–56 kg ha-1), and gross revenue at EOPD ($16–24 ha-1). The overall EOPD estimate was 46 plants m-2, regardless of environment, genotype or RS. The study highlighted the difference between agronomic production and profit maximization in choosing an optimum plant density, and the need to establish a seeding density calculator for irrigated soybean in southern Alberta.