Strategic Business Management

1. Since longrun profitability requires that a firm is sensitive to the interests of its customers, employees, suppliers, and societyatlarge, whether a firm is run in the interests of its shareholders or its stakeholders makes no real difference. Do you agree? Are there situations where shareholder and stakeholder interests diverge?
2. Table 2.1compares companies according to different profitability measures.

TABLE 2.1 Profitability measures for some of the world's largest companies, 2017 Market capitalization Net income ROS? ROES ROAD Company ($ billion) ($ billion) (% ) (*% ) (%) Return to shareholderss (%) Apple 824 48.4 26.9 39.0 16.3 +46.8 Amazon 689 3.0 2.3 9.6 3.1 +27.4 Alibaba 480 6.2 29.8 21.9 9.1 +94.1 JPMorgan Chase 397 24.4 50.2 9.5 1.4 +24.6 ExxonMobil 358 19.7 5.2 11.8 5.7 -5.8 Wal mart 310 13.6 4.1 14.9 11.9 +45.2 Toyota 204 15.8 7.6 13.2 4.1 +5.8