Final answer:
Companies emphasize innovation in production to create desirable products, reduce costs, and maintain a competitive edge. They also seek economic efficiency and are invested in sustainability and reducing environmental impacts.
Step-by-step explanation:
Today, companies emphasize innovation with production. Innovation leads to the creation of products with desirable characteristics and the ability to produce products more cheaply. As Gregory Lee, the CEO of Samsung, highlights, the relentless pursuit of new innovation is crucial in offering consumers a world of possibilities with technology and maintains a firm's competitive edge. This temporary edge is significant as it allows for the earning of above-normal profits before competitors can adapt.
Moreover, firms often seek to optimize their production processes to achieve economic efficiency, which is getting the most benefit from scarce resources. In decision-making, companies must consider factors like the cost of machines versus labor. Choosing the right production technology, which might involve assessing different combinations of capital and labor, can lead to the most cost-effective approach to manufacturing goods.
Companies are also actively working to reduce emissions and environmental impacts through energy efficiency, creating greener products, and responsible company operations. These practices align with principles of sustainability and responsible entrepreneurship, which have become increasingly important in global business strategies.