To what extent is profit a good indicator of the success of an organization?

To what extent is profit a good indicator of the success of an organization?

Sometimes profit can be seen as a good indicator of the success of an organisation, but this is not always true. Everything depends on what an organisation thinks of success. The Oxford’s Dictionary (2000) defines “Success?as: “the fact that you have achieved something that you want and have been trying to do or get? An organisation may have different aims than the profit maximisation; therefore I would like to explain the different kinds of organisations.

The diagram above is a very simple division of the types of organisations. Shafto (1993) states that “an Organisation is a group of people held together by an agreed structure involving the acceptance of agreed rules and a system of authority, seeking to pursue a specific objective or a set of objectives? Organisations can be roughly divided into multinationals and non-profit organisations.

Marcouse (1999) defines “Multinati...