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Financial Service Company Essay

Decent Essays

As the CEO of a Financial Service Company I would scale back participation in the market and reduce the market share target, if lowering the company standards would affect the trust built with the clients. The reasons being: (i) corporate decisions made by the Board and the CEO not only affect the company in particular but also the world economy as seen in the 2008 Financial Crisis, (ii) it is the CEO responsibility to guarantee the sustainability and profitability of the company, largely determined by building enduring relationships with the clients, which are the core of the business and (iii) lowering the company standards could hinder the future of the entity. Companies do not operate isolated from the world. All Financial Service …show more content…

No one opens a business with the idea of closing it in two to five years, when you open a business the idea is for it to last from generations to generations and sometimes this implies taking decisions that will not be beneficial, at first glance, to the shareholders of the company. The decisions of lowering the business standards could hinder the company in the long run and even take the company out of the market, which in that case would be terrible for the shareholders, the employees of the company, who would stay unemployed, and the clients, who in the process could lose some of the money they have trusted the company with. Scaling back the participation in the new markets and reducing the market share could cause some disagreements with the shareholders. They may argue that the main goal of a CEO is to maximize the profits of the company. As stated before, this would only be at first glance, once the explanation and presentation of future losses is shown, the shareholders would all agree because they would clearly understand that breaking the clients trust will translate in less profitability for the company and closed doors to new business opportunities in the future. It is the CEO’s responsibility to carry the vision and determine the future of the company. There are other ways by which the company can diversify and maximize profits without affecting the core values and foundations of the company and preserving the

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