If a firm’s business activities do not result in profit maximization, whilst alternatives exist, then such activities amount to irresponsible actions. Discuss any five sets of economic responsibilities firms must embrace to ensure the protection and enhancement of the business.

The five steps of economic responsibilities firms should embrace includes the following: (1) By using resources efficiently (2) Organizational structure (3) Outsource (4) Continuous Improvement (5) Bench-Marking

Explanation:

Solution

The 5 sets of economic responsibilities firms should embrace include the following:

1)Use resources efficiently: Existing resources such as funds, infrastructure,  man power,transport must be effective by the companies. Companies must have genuine policies and companies must guarantee that people are following the laid down standards and policies in making sure that operational costs are as low as feasible.

2)Organizational structure: Must guarantee that organizational structure and payoffs are right.

Organizational structure is necessary so as the manpower is not changed and all departments have the needed manpower only. Also, the payment gaps between different must be sufficient instead of excessive. There must not exist a large gap increase rate of average salaries of top executives and average salaries of lower level employees.

3)Outsource: Companies must outsource processes if the cost of outsourcing operations is lower than the cost of internal operations. for this it save a lots of costs.

4)Continuous Improvement: The welcoming of continuous improvement projects in the organizations to minimize the costs of operations shows that costs are saved.

5)Bench marking: Benchmark all the costs against industry leaders and aspire to become the most low cost operator to earn more profits.

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