What Really Motivates Companies?

Cyert and March's behavior theory. This theory states that firms aim for satisficing profits

rather than maximum profits due to uncertainty, conflicting objectives, limited information. 7.

Marius' growth-maximization model. Marius suggested firms aim to maximize balanced growth

of demand for products, capital supply. Growth increases managerial utility and job security.

8. Baumol's sales maximization model. Firms maximize sales revenue instead

of profits subject to minimum profit constraint. 9. Williamson's managerial

discretionary theory. Managers seek to maximize their own utility, salary,

power, prestige while maintaining minimum profit levels.