Financial Management of eBay Company Assignment

Financial Management of eBay Company - Assignment Example One of the company's strategic business units is Ebay Marketplace-actually the core among its businesses. 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 includes 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 remuneration, 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. Consider the extent to which these objectives are in conflict with each other.On one hand, the company aims to improve its operating profit margin. On the other hand, costs that are related to increasing...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 includes 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.