Challenge in Maximizing Profit for the Large Firms Essay

Challenge in Maximizing Profit for the Large Firms - Essay Example In the literature, it is noticed that the priorities of firms have changed during the above period under the pressure of the financial and political turbulence worldwide. We could indicatively refer to the study of Becerra (2008) where it is made clear that the firms’ profitability is developed under specific conditions: ‘(a) value uncertainty, (b) resources specificity, and (c) firm-level innovation’ (Becerra, 2008, 1110). It is not made clear in the above study whether the above conditions refer to the development of profitability of all firms or whether there are related only to the performance of firms of a specific size. The studies published on the specific field show that there is a relationship between the aspects of firms on profit and the political/ social and financial conditions of a particular region. In the 21st century, the increase in profit has been a significant priority for managers of large firms and TNCs; however, it seems that in the previous century – the 20th – different views on profit have been developed by the firms of this size; emphasis was put rather on the personal development of employees and the promotion of specific principles, like equality, across firms of all sizes. The fact that most of the large firms and TNCs of the 20th century were under the control of the state could possibly have affected the views of managers of these firms on profit. As noticed above, in the 20th century, firms’ priorities have been differentiated by those of firms operating in the modern market. The role of the state in the development of business activities has been major during the specific period; on the other hand, the 20th century is characterized by the promotion of social theories.