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Se Cyert March 1963
Assuming that the enterprise is active in a consummate market, the generally acknowledged theory purports that the goal of the enterprise is to maximize its net income taking into consideration established prices and a technologically determined production function” Assuming that the firm is operating within a perfectly competitive market, the generally received theory asserts that the objective of the firm is to maximize net revenue in the face of given prices and a technologically determined production function.
Perhaps the most straightforward way to object to the motive of profit also is the most destructive one. One can argue that entrepreneurs, as anybody else, have a lot of personal motives. Profit may be one of them but they also are interested in sex, in food or in saving people” Perhaps the simplest attack on profits as a motive is also the most destructive. We can argue that entrepreneurs, like anyone else, have a host of personal motives.11 Profit is one, perhaps, but they are also interested in sex, food, and saving souls.
We want to view organizations as coalitions, coalitions of individuals, some of whom are organized in sub-coalitions. In a company, managers, workers, shareholders, suppliers, customers, attorneys, financial authorities, supervisory authorities and others are members of this coalition” Let us view the organization as a coalition. It is a coalition of individuals, some of them organized into subcoalitions. In a business organization the coalition members include managers, workers, stockholders, suppliers, customers, lawyers, tax collectors, regulatory agencies, etc.