What to do to maximise profits of the company, Financial Management

What to do to maximise profits of the company

If you want to maximise profits, there are only two methods to do it. Either you decrease your expenses (also known as costs) or you increase the sales (also known as revenues).Both of these aren't easy to achieve.  Sales can be increased by increasing the price of the products or byselling more products. Selling moreproducts is difficult due to the competition in the market and you can't increase the price of the products withoutadding more features or value to it (presuming a competitive market).  If you're a competitive company, decreasing expenses beyond a certain level is possible only byreducing investments in research, advertising and development, etc. which eventuallyleads to reduction in sales in the long term and threatens the survival of company. Profit maximisation goal supposes that many of the complexities of the real world don'texist and is, thus, not acceptable.


Posted Date: 9/4/2013 1:51:45 AM | Location : United States

Related Discussions:- What to do to maximise profits of the company, Assignment Help, Ask Question on What to do to maximise profits of the company, Get Answer, Expert's Help, What to do to maximise profits of the company Discussions

Write discussion on What to do to maximise profits of the company
Your posts are moderated
Related Questions
QUESTION 1 Discuss the role and contribution of the procurement function in an organisation. QUESTION 2 Discuss the main objectives of purchasing negotiations. Compare

This case has been framed in order to test the skills in evaluating a credit request and reaching a correct decision. Perluence International is large manufacturer

Explain how Eurocurrency is created. Answer: The center of the international money market is the Eurocurrency market. A Eurocurrency is a time deposit of money in an internationa

a) The combined two-firm concentration ratio of Motorola (approximately 17.5%) and Nokia (35%) is around 52.5% of the market. b) Up to 2 marks for correct definition: Market sha

Do you guys provide Profitability Index Method assignment help? I need writing a report on Profitability Index Method and it is about 2000 words. Let me know. I need to buy your so

The Investment Decision: - Investment decision as well known as 'Capital Budgeting' is related to the selection of long-term assets or else projects in which investments will be m

This question tested the core area of specifically gradually consolidation and acquisitions (control to control). The principle of calculation of goodwill at the date where control

Offshore Financial Center It is a location with banking facilities to accept deposits and make loans in currencies various from the currency's country of origin. Banks located

QUESTION (a) What are the main benefits of E-Banking to customers and banking institutions? (b) Internet Banking products and services are of two primary types, informationa

Collecting Information and Forecasting: All budgets must be based on accurate and reasonable information. A budget derived from information which is irrelevant to the actual or