Working in a communication agency has exposed me to various scenarios that define my perspective towards other people. In our daily activities, we negotiate deals on behalf of our clients who have certain expectations regarding the nature of outcomes realized from our representation. Notably, conflicts of interest emerge when we fail to secure the best deals for our clients due to the suppliers’ hardline position. However, we always settle on the best outcome that benefits our customers to create a healthy relationship that guarantees our business engagement. The principal-agent problem emerges when the client feels the lack of enthusiasm to advocate for their interests with the suppliers. Including incentives solves the principal-agent problem because of the ability to demonstrate a certain level of commitment towards realizing the expected outcomes. Therefore, agency costs should be avoided because the principals incur them.
This course has exposed me to a wide range of insights that continue to shape my understanding of various business processes in the corporate world. For instance, overcoming moral hazards equips individuals with an upper hand in enhancing relationships with other individuals in the business environment. Similarly, I have an in-depth understanding of auctions and how they should be conducted to yield desired outcomes. When exploring the principal-agent problem, one should always focus on creating the best result that suits the client’s interests. Although the agency demonstrates the cause of conflict to the client, customers are interested in accomplishing desired outcomes that fulfill their goals and objectives in the business environment. I am particular about the impact of this course on my pursuit of career goals and objectives.
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