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

Assignment Help:

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.

 


Related Discussions:- What to do to maximise profits of the company

Differences in working capital for different industries, Differences in wor...

Differences in working capital for different industries   Manufacturing Retail Service Inventories H

Explain the divestment of company re-organisations, Divestment of company r...

Divestment of company re-organisations Adisinvestment or divestment is selling part of the business or subsidiary to another third party. Reasons and features for divestme

Operating and financial leverage, explain the significance of operating lev...

explain the significance of operating leverage and financial with the help of example?

Financial reform, The recent financial reform in the Public Sector that had...

The recent financial reform in the Public Sector that had been implemented in Fiji is essential. Critically evaluate this statement.

Performance of mutual funds, Performance of Mutual Funds The performanc...

Performance of Mutual Funds The performance of Mutual Funds can be evaluated by calculating the rate of return earned during the relevant comparison period. The return will inc

Accounting framework - convention of disclosure, Accounting Framework - Con...

Accounting Framework - Convention of Disclosure The doctrine of disclosure suggested in which all accounting statements should be honest and to that end, full disclosure of al

Limitation of profit maximisation -quality of benefits, Limitation of pro...

Limitation of profit maximisation -Quality of Benefits Probably the most vital technical limitation of profit maximisation as an operational objective, is that it ignores qua

Average of relatives method, Average of Relatives Method We have seen ...

Average of Relatives Method We have seen the construction of an index number using the aggregates method. In this section, we shall see the construction of an index using the

Who owns a credit union? explain, Who owns a credit union? Explain. Cr...

Who owns a credit union? Explain. Credit unions are owned by their members.  When credit union members place money in their credit union, they aren't technically "depositing"

Explain the term finance companies, Finance companies Finance companies...

Finance companies Finance companies make loans to individuals as well as corporations by providing consumer lending business lending also mortgage financing. A few of their loa

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd