Respond to / reflect on what is said in each of the following.

Then give a short summary of the topic: There is a belief that the management of a company focuses on stock value. This places an emphasis on short-term profits which increase stock value as opposed to longer-term profits which may hurt current stock valuation. Discuss the pros and cons of each and what you think is the best focus for management.

Post 1

The investor's view of a company's potential to generate and increase profits is reflected in the stock price. Because managers frequently receive compensation based on the value appreciation of the socks they own through stock options, stock price is crucial to them.

Additionally, other factors that can harm current stock valuation are the state of the industry, the supply and demand for the company's goods, the domestic and international markets, technology, the company's life cycle, product pricing, and competitive position.

Managers should not place too much emphasis on the present stock price because doing so will force them to prioritize short-term gains over long-term ones. True. Managers should concentrate on increasing the value they can bring to the company in order to optimize their business valuation.

Managers should focus on exceptional communication skills and motivational strategies. Effective communication is a hallmark of strong leaders with their staff, other company executives, and external parties like clients and customers. This ability can be a useful area for managers to develop because it is essential to effective leadership. Motivating team members to give their best effort is a key component of successful management. It is therefore possible to grow and develop by learning and putting into practice powerful motivational techniques.

For example, the employees at Chick-Fil-A. Chick-fil-A employees: 1) make eye contact, 2) smile, 3) speak enthusiastically and 4) don't just mumble "thank you," or offer a disinterested grunt after you pay. They say, "My pleasure." These four behaviors are part of an extensive employee training regime known as Core 4. The employees are motivated to give their best effort.

Post 2

Business executives truly aim to raise the stock price of their company when they attempt to maximize wealth for the company. The worth of the company and the wealth of the shareholders both rise as the stock price does. Maximizing shareholder wealth is a corporate governance philosophy that establishes one main objective for business managers. People frequently believe that a company's management are also its owners. In the event of a small firm or partnership, it might be the case. However, there could be several levels of management in a bigger company, and they might not all be company owners. They only make money from the firm in addition to their pay and benefits if they have stock in the company.

A business would be maximizing the wealth of its shareholders if it operated under the guiding philosophy of building a business with limitless intrinsic value. Because every move it does will be geared toward raising the share price, the company and its shares will become increasingly valuable to those who invested in them. All other company objectives, not to mention social and environmental objectives, would be subordinated to the goal of raising stock price. Maximizing shareholder wealth is significant because it gives managers of a company a goal to work toward . In the face of otherwise conflicting interests and agendas, this purpose provides the management with clear guidance. One of the most prevalent corporate norms is it.