To Dr. Clover(Last Response Needed For Unit 5 Week 2)

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This assignment has 2 parts:

1.   What competencies were you able to develop in researching and writing the course Comprehensive Project? How did you leverage knowledge gained in the intellipath assignments (Units 1- 4) in completing the Comprehensive Project? How will these competencies and knowledge support your career advancement in management?

·  In researching and writing the course Comprehensive Project, I was able to develop the competencies necessary to determine whether global expansion would be a good choice for my company.  For the comprehensive project at the end of the course, we looked to expand into the European market.  This forced me to dig deeper into the European union and the recent events that lead to the Brexit.  I was able to figure out how a corporation deals with exchange rate changes as well as how to identify and measure foreign exchange risks. I now have knowledge of international banking and monetary systems. Having these competencies and knowledge will support my career advancement in management as I will be able to offer detailed and informative feedback regarding whether to expand globally.  I can contribute to the research and provide clarification on where our company would best benefit from expanding.

2.   Discuss the similarities and differences between shareholder wealth maximization and stakeholder wealth maximization.

·  To discuss shareholder wealth maximization and stakeholder wealth maximization I think we should first define the two terms.  A shareholder is a person who “owns” a share or stock in the company.  A stakeholder is anyone with an interest in the company for reasons other than revenue.  It can be argued that shareholders are also considered stakeholders, however, not all stakeholders are shareholders. Shareholder wealth maximization is the effort by corporation managers to increase the revenue of the company resulting in higher stock prices therefore increasing share costs.  Stakeholder welfare maximization is an attempt by the business managers to increase the happiness of the stakeholder of the company.   In the U.S., the primary corporate objective is shareholder wealth maximization whereas other countries focus more on stakeholder welfare maximization.  Some could say shareholder wealth maximization could yield stakeholder wealth maximization.

 
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