Posted by GG on .
There are various stakeholders in an organization. The two key stakeholders are the customers and the stockholders. Some financial managers believe that the customer is always right and an organization must do everything possible to win customer delight, thereby gaining a high market share and, subsequently, investor confidence. Conversely, some financial managers believe that a stockholder is more important than a customer because investors have many stock options available to them. Some organizations are better at attracting investors' capital.
With this framework in mind, what according to you should be the objective of an organization that is particularly good at attracting investors' capital? How can a financial manager increase the chances of meeting this objective?
What a conundrum!
In order to attract investors, the managers must continually increase sales and earnings per share. To do that, they need to continuously keep old customers and increase new customers.
How would you solve this?