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

Describe the concept of block of assets, Describe the Concept of Block of A...

Describe the Concept of Block of Assets? (a) Comment on the techniques of Risk Analysis commonly employed in Capital Budgeting. (b) Define clearly the concept of block of as

Receipt of bids and bid opening, R eceipt of bids and bid opening We d...

R eceipt of bids and bid opening We discussed how to prepare the bids and to publish them in the earlier sub section. Now let us see how to receive and open bids. To receiv

Swing traders, Swing Traders Swing trading is more or less similar to d...

Swing Traders Swing trading is more or less similar to day trading except that swing traders will normally have a longer holding period during a working day. Swing traders also

Strategic management, Develop and implement strategic plan using bounce fit...

Develop and implement strategic plan using bounce fitness as case study

ACCRUAL INCOME VERSU CASH FLOW, Thomas book sales, inc. supplies texbooks t...

Thomas book sales, inc. supplies texbooks to college and university bookstore. The books are shipped with a proviso that they must be paid for within 30 days but can be returned f

Finance manangement, What is the maximum price that you would be willing to...

What is the maximum price that you would be willing to pay for a constant growth stock that has the following characteristics: (a) Dividend (Has Paid): $3.25, (b) Growth: 7%, and (

Define the term- cost of capital, Define the term- Cost of capital Cost...

Define the term- Cost of capital Cost of capital is the rate of return a firm should earn on its investments for the market value of the firm to remain unchanged. Acceptance of

MIS, evaluation and maintenance of MIS

evaluation and maintenance of MIS

Explain due date and due diligence, Q. Explain Due Date and Due Diligence? ...

Q. Explain Due Date and Due Diligence? Due Date -Every governing agency and its forms scheduled reporting and most significantly payments have a required due date. It's this

What is the meaning of deviations, What is the meaning of Deviations De...

What is the meaning of Deviations Deviations must be recorded and investigated regardless of the amount involved and then assess whether deviations are isolated departures or i

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