ASSIGNMENT#1

MBA- Business-Assignment#1

MBA- Business-Assignment#1

Learning Log

For the purpose of learning log, I have selected the three articles by searching the keyword such as “stakeholder theory” in the search box. After reviewing the search results I selected the articles by comparing the impact factor of the journal and the ABS rating. Out of three, two articles are of grade 3, and one is of grade two. Since, the grading score is good enough for the selection of the particular articles from the internet; finally the articles were then selected after reviewing articles for the respective them of the research.



Summary

Over the years debate is going on the fundamental objective of the firm, researchers, policy makers and economists believe in the objective of the firm which supports the interest of various stakeholders such as suppliers, employees, etc. Michael Jansen explains the relationship between stakeholder theory and value maximization. He explored the existing literature on the topic and argues that though stakeholder theory's structure is much more utilized by the value maximization, but accepts that tradeoffs among stakeholders and specification of long term value seeking or value maximization as the objective of the firm depends upon the long-run value of the firm. Author clearly explained the importance of stakeholders' interest with respect to firm goals. He argued that maximization of the firm value is not possible until the interests of stakeholders are ignored.

In addition to this, aspects of stakeholder theory and value maximization were explained by the author so as to make the topic clearer. For instance, according to the value maximization theory managers are required to make only such decision which result in the increased total long run value of the firm. On the other hand, stakeholder theory advocates the concept which requires the managers to take all such decisions which are in ...