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xx8) Justine has just started a company that makes notebooks and other stationery items out of...

xx8)

  1. Justine has just started a company that makes notebooks and other stationery items out of recycled materials. She has decided to use a profit orientation, and wants to make a 10% profit from all sales. Why is this a bad idea?

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In the provided case, Justine started a profit orientation company. She wants to make a 10% profit from all sales. It is a bad idea to start a company having a profit orientation in the beginning phase. It is because a profit orientation company focuses more on what it can create best instead of meeting the changing needs of the customers. Such an organization sometimes ends up creating what is not demanded by customers. Also, having a profit orientation in the beginning phase will not help the company to build value and name for itself. The focus should be building customer orientation, earn a name, and then mint profit.

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