Motivations of Managers in Small- and Large Firms Essay

Motivations of Managers in Small- and Large Firms - Essay Example In 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 going 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 sum of profit. Earning profit is not solely dependent on increasing the company’s annual sales; the ability of the manager to maximize the use of its existing resources also contributes a lot when it comes to increasing the amount of profit a company can generate each year. Aside from the major differences between the corporate structure of small firms and large multinational companies, it is a common knowl edge that large-scale businesses are able to acquire bigger credit line from banks as compared to small-scale businesses. Since small-scale businesses have limited financial resources that can be used in operating the business. For this reason, managers within small-scale companies are not fully able to maximize the benefit 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’ needed training and development aside from investment on newly innovated communication and production technology and the benefit of purchasing of raw materials by bulk.