By W. Stewart Howe (auth.)
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Marris , The Economic Theory of 'Managerial' Capitalism (London: Macmillan , 1964). 12. See , for example , O . E. Williamson, The Economics of Discretionary Behaviour: Managerial Objectives in a Theory of the Firm (London: Kershaw Publishing, 1974) p. 36; and R. M. Cyert and J. G . March, A Behavioral Theory of the Firm (New Jersey : Prentice-Hall, 1963) pp. 42-3 . 13. See H . K. Radice, 'Control Type, Profitability and Growth in Large Firms: An Empirical Study' , Economic Journal, September 1971, Vol.
3 Business Objectives in Practice A number of the above points are reflected in public statements of objectives, as the following extracts indicate . Sir Charles Forte: 16 I have always been ambitious to undertake projects which will earn money, because this is my principal job - to earn more money and in greater safety. Fisons Ltd: 17 The objective is consistently to achieve profitable growth in real terms by increasing earnings per share and raising the return on capital employed ... Job satisfaction, employee participation, Business Objectives 23 social responsibility and environmental concern are important matters in their own right and also as constraints against making financial objectives the only factor.
But in others service to the customer, technological expertise or marketing skills play very significant competitive roles, and will therefore figure largely in strategic decision-making. In particular the results of the key factors for success analysis will strongly influence the way in which a business assesses its own strengths and weaknesses. A knowledge and understanding of its environment should thus increase the quality of strategic decision-making by virtue of the consideration of a full range of relevant factors well before the actual need to make a final decision .