Discussion Application Essay
All businesses are interested in making money and increasing their profits. Other issues must be considered as the day-to-day activities of the business are carried out. Issues such as customer satisfaction or employee retention are important as they increase the profitability of any organization. However, an organization cannot survive with only satisfied customers or many employees; it must make profit to cater for the daily operation expenses. Therefore, profitability is the most important aspect of any business (George, et al. 2004). The only time when a business might consider customer satisfaction or employee retention to be greater than profitability is when satisfied customers or more employees directly translate to more profit. For illustration, in sales and marketing organizations, more sales representative’s means more sales hence increasing the company profits.
Other factors, which are critical to a company’s survival, include rate of production, the skills of the employees, the available machinery and financial resources (Womack, & Jones, 2003). For a the CEO of a company to make a decision that profitability is the most important aspect of business, it must have met some financial challenges that caused it to realize that the company cannot function without profits. Financial challenges such as inability to remit the tax due or inability to pay employees. Financial problems in any business always cause the CEO to make radical decisions in so that the business can continue to operate (George, et al. 2004).
The other alternatives that a CEO might consider include utilizing the new technology in the market, cutting on unnecessary expenses, doubling up the efforts at the sales, and marketing department. Any one of the mentioned activities has the potential to increase organizations profitability. In implementing the decision to increase profitability, a CEO can implement any of the above activities. However, customer satisfaction and employee retention remains some of the few decision that any firm and make to increase its profits.