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Financial Management - Essay Example
By constantly finding new revenue sources such as classified platforms and venturing into in-season product markets, this is an objective that aims to support the objective of getting an overall operating margin above 33%.
This objective is also in line with the overall objective of achieving above 33% profit margin for the company…
Ebay aims to increase the volume of transactions that are conducted by users as part of its operational objective. By increasing the per-transaction value, as well as its volume, Ebay aims to increase its overall objective of increasing operating profit margin.
Ebay's human resource policy includes creating a good and friendly environment for its company, where employees will always have an environment which will be human at all times. This include activities that aim to provide services for employees' convenience including a gym, restaurant, coffee shop and relaxation rooms, as well as family events for special holidays and occasions.
Apart from ordinary employees, managers in Ebay are given bonuses and economic benefits as part of their renumeration, as regards the company's human resource policies. By including bonuses and other economic benefits to people who hold top positions in the company, the company aims to improve accountability and lessen the agency costs-with top managers as the agency to the shareholders.
On one hand, the company aims to improve its operating profit margin. On the other hand, costs that are related to increasing the costs that cut down operating profit margin are associated with fulfilling of the non-financial objectives. The conflict arises due to the differences in interests that the objectives try to serve and fulfill.