At some point in time Carnegie and Frick were at a place where they had their employees working longer hours, harsher conditions, and less money that wasn’t suitable to live in. Frick knew that this would up the profits of the company but, he didn’t think that the employees would respond negatively to it. The employees were being severely overworked, which resulted in their lack of ability to perform the job the way they use to do them. The employees were so tired of the horrible working conditions and low wages that they went on strike, which is the last thing that managers want to deal with. In order to have a successful business, the employees need to be happy because if they’re happy it is just as important as the money the company brings in.
Finance plays a role in every decision making process that a company has to go through. An example of this is let’s say that Savannah is the owner of a new boutique in town and has just paid off the down payment on the location but had to take a lot of loans out to fix the place up. All of Savannahs money has gone to loans for fixing the location up, the rent of the place, equipment, supplies and employees, but the boutique is a huge hit in the small town and she becomes extremely busy. Savannah has no more money to pay for more help in the store and this is where finance had just played a role in her decision on what to do next. Obviously, if Savannah had more money than she could hire more help with the boutique but since she doesn’t she had to find a way to not overwork her employees and still have a successful business.
Every business has to make difficult decisions based off of finances. The company’s overall goal is to market the best product, and also producing the best working conditions while saving the company as much money as they possibly can. Managers are always having to worry about competitors and competition can force you to do some extravagant things, such as, spending more money to beat out your opponent in a certain market. Managers should learn from Carnegie and Frick and how they handled their situation. Managers should never lower the wages and make the working conditions harder because if employees starting thinking that they don’t matter to the business they will quit and then there wouldn’t be any businesses out there because they wouldn’t have any workers to put out the products that they are promoting. The financial aspect of business can be very tricky and very detrimental to a company if not properly handled. Finances can make decision making very difficult, but no matter if it’s a big decision or a little one, it will impact your businesses financial statements from anywhere from previous years to even future years.
One of the founding fathers of business, Andrew Carnegie, knew about the importance of finances from a young age. When Carnegie was around the age of twelve, he started working for Tom Scott in the railroad industry as his assistant. While working in the...