Motivations of Managers in Small- and Large Firms Essay

Motivations of Managers in Small- and Large Firms - Essay ExampleIn the paper, the importance and major differences between small- and large-scale businesses such as in the case of the multinational corporations (MNCs) and the transnational corporations (TNCs) will be thoroughly discussed. In the process of deviation through the discussion, the differences between the ownership, goals, and business organization including the business activity of small- and large-scale businesses external environments will be compared and contrast. Whether a company is small- or large-scale, the main purpose of establishing a business is to earn large shopping mall of profit. Earning profit is not solely dependent on increasing the companys annual gross sales the ability of the manager to maximize the use of its existing resources also contributes a lot when it comes to increasing the centre of profit a company can generate each year. Aside from the major differences between the bodily structure of small firms and large multinational companies, it is a common knowledge that large-scale businesses are fit to acquire bigger credit line from banks as compared to small-scale businesses. Since small-scale businesses have limited pecuniary resources that can be used in operating the business. For this reason, managers within small-scale companies are not to the full able to maximize the expediency of economies-of-scale. Large-scale businesses such as in the case of multinational corporations (MNCs) and the transnational corporations (TNCs) have the financial capacity to invest on highly competitive human resources and support employees requisite training and development aside from investment on newly innovated communication and production technology and the benefit of purchasing of raw materials by bulk.