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labwork [276]
3 years ago
8

In current business publications, find examples of firms whose strategies to increase profits focus primarily on generating more

revenue. Compare these cases with firms that are trying to cut costs to increase profits. In your initial post, include a summary of these firms and how the different strategies have been successful or unsuccessful.
Having a nice size profit margin is the goal for most companies. In order to make this happen there has to be a plan/strategy that is carefully thought out and implemented. You want to take your time and make sure things are done correctly and in a way that it is profitable and not detrimental to your company at the same time. One good example of this act comes from McDonalds. One McDonalds franchise in New York increased the price of their Big Mac from $5.98 to $6.28 currently to increase revenue. Prior to this there was an anual increase that took place. "The Golden Arches' pricing in the U.S. Rose 2% year over year in the first quarter, which was still less than the consumer Price Index's overall".
On the other end of the spectrum we have companies like Apple. Apple fired 1,600 full time employees from retail stores to increase their profit margin. "The retail segment reported operating income of $308 million during the second quarter of 2009 down from #334 million....". In cutting down on those full time positions they were able to increase their profits by paying less full time salaries to employees. "Revenue increase 8.7% to 8.16 Billion, which is more than 7.96 billion expected...". I do not feel that this is the best way to go about getting results. A merger of the two would be effective. Gradually increasing sales prices and not eliminating so many positions at once or merging positions even would be effective. You have to take into account that less employees mean more work for the workers that are left, which could leave them in a stressful work environment. In turn could mean customer service quality decreases drastically. Things have to be looked at on both sides of the spectrum.
Business
1 answer:
ladessa [460]3 years ago
4 0

Answer:

Following are the responses to these question.

Explanation:

The goal of most businesses is to achieve the optimum gross profit. Moreover, to achieve this, a well-designed plan or plan deserves to be placed in place. The management needs to ensure that things are done properly and so that they are successful at the same period and therefore do not harm the business. That fast-food giant Mcdonald's is a good example of this. One of McDonald's' franchises in York City recently increased its Big Mac sales from $5,98 to $6,28. Before all this, Macdonalds would have an annual boost.

"During first 4th quarter, the price of Eiffel Tower in the U.s. Increased two percent year on year was still less than price index"

They need businesses like Apple at another end of the continuum. Apple also fired 1,600 filled retail employees to increase its gross profit. "Operating revenue inside the second quarter of 2009 were down $308 million to $334 million...." We were able to boost their earnings by cutting such full-time jobs. "To 8.16 billion u.s. dollars, which is over 7.96 percent estimated, the economy increased by 8.7%.

It doesn't seem to be the right way of achieving performance. It'd be effective to mix the two. Gradual sale rates are an optimal option, not cutting too many roles at once or combination. It is borne in mind that a decrease in the number of jobs is much more work to left workers who can keep them in a demanding working environment. This could mean a dramatic decline in customer support efficiency. Stuff on all sides of the spectrum must be looked at.

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Please describe an effective leadership style
Lostsunrise [7]

Explanation:

noluyo anlamıyom ya döyler misiniz

8 0
2 years ago
Atlas Company provided the following information for last year: Operating income $ 92,000 Sales 235,000 Beginning operating asse
STALIN [3.7K]

Answer: 0.22

Explanation: Return on total assets is calculated by dividing net income or operating income from average total assets. It is a profitability ratio which is used by analysts to evaluate the ability of the firm to generate revenue from the given level of assets it have.

=\:\frac{operating\:income}{Average\:total\:assets}

where,

Average\:total\:assets=\frac{410,000+\:440,000}{2}

= $425,000

Now,putting the values into equation :-

=\:\frac{92,000}{425,000}

= 0.22

8 0
2 years ago
Nicole works for RTFC Enterprises as a regional sales representative. RTFC is a prominent producer of board game supplies. Nicol
MaRussiya [10]

Answer:

internal entrepreneur

Explanation:

According to my research on different types of entrepreneurs, I can say that based on the information provided within the question Nicole is an internal entrepreneur. This term is defined as a person within a large corporation who is taking a direct approach for turning an idea into a profitable finished product, usually by being assertive and pushing through organizational obstacles.

I hope this answered your question. If you have any more questions feel free to ask away at Brainly.

4 0
3 years ago
Exercise 14-8 Presented below are three independent situations. (a) Oriole Co. sold $1,970,000 of 12%, 10-year bonds at 102 on J
bearhunter [10]

Answer:

$116,230

Explanation:

Calculation to determine the amount of interest expense to be reported on July 1, 2017, and December 31, 2017.

First step is to find the Cash interest on the Bond calculated as:

Cash interest on the Bond = 1,970,000*12%*6/12 = $118,200

Second step is to find the Premium on Bonds Payable calculated as :

Note that (102%-100%)=2%

Hence,

Premium on Bonds Payable = 1,970,000*0.02 = 39,400

The third step is to find the Semiannual bond Premium Amorixed for both July 1, 2017, and December 31 calculated as :

Semiannual bond Premium Amorixed = 39,400/(10*2)

Semiannual bond Premium Amorixed = 39,400/20

Semiannual bond Premium Amorixed = 1,970

The last step is to calculate Interest expenses for the both July 1, 2017, and July 1, 2017, and December 31 using this formula

Interest Expenses = Cash interest - Premium amortized

Let plug in the formula

Interest expenses = 118,200-1,970 = $116,230

Therefore the amount of interest expense to be reported on July 1, 2017, and December 31, 2017 will be $116,230

7 0
3 years ago
In process improvement projects, why should we focus our efforts on those processes that consume the most resources (e.g., labor
julia-pushkina [17]

Answer: Because this is where we get the highest returns from.

Explanation:

They are the force behind production and efficiency, getting them improved or better means improvement in production or efficiency which literally means there is much reward for time, money, resources etc spent. Their inefficiency could mean doom for any business or project. It could literally lead to loss.

3 0
3 years ago
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