Ensuring that their compensation is competitive with the market and valuing the employee’s opinions are just two ways to accomplish this. However it is done, a happy workforce is a productive workforce. Reference Robbins, S. P., & Judge, T. A. (2011). Organizational behavior (14th ed.).
This is when the objective of the firm is achieving as high a total revenue as possible and occurs when marginal revenue is equal to zero, as shown on the graph. Another objective of a firm may be profit satisficing, where a firm makes a reasonable level of profit that satisfies its stakeholders without maximising profit. Examples of this in the leisure market may include businesses that have only just set up, as they perhaps do not have the work force to maximise profits yet and instead settle for a satisfying level of profit. The final objective of a business may be utility maximisation. Utility maximisation is the aim of trying to achieve as much satisfaction as possible.
So to be able to have a productive and successful business, business owners may want to look into maximizing their profits by way of the profit maximization concept. Profit maximization is when a company comes to a conclusion on the price and output level that will turn the maximum profit by using this particular process (Wikipedia). Granted there are many different approaches to this problem; however in this essay we will be considering the TR to TC method and the MR MC method. Tiffany C Wright expressed that the total revenue to total cost method is dependent on the fact that profit equals revenue minus cost. Total revenue equals price time’s quantity.
In the short run, Kudler was able to maximize its profits and minimized losses. They were making profits because they were producing quantity where marginal revenue was equal to marginal cost and charged prices based on their demand curve. The demand for their goods was very high at first because they had little competition. Another positive effect of a monopolistic competition is that it promotes product variety and improvement. When Kudler makes business improvements, it causes their competitors to either imitate them or get out of the business.
Companies will have an opportunity to choose among the best talent on the market. Without fictional unemployment people would tend to stay in their current jobs for life and create a stagnant system that could create a negative effect like subduing innovation. Fictional unemployment is also important because it matches the demand for workers with the supply from companies and helps bring equilibrium into the labor
A shareholders role is to invest money into the business to ensure that it is running efficiently and the way it should be running. They are interested in a good return in investment and how much profit the business makes. They mainly care about how much profit that is made by the organisation/business. Also, the other main thing that shareholders might want is to see their share of profit increasing and the value of their business rising. They influence and impact the business because the business may need money for it to keep running.
Moving forward, unions should use real life examples, such as the comparison of WMT and Costco, to show that unionization does not hinder a corporations profit potential and future growth opportunities. In fact, unionization can actually increase growth and profit. Through diversified training programs and increasing employee moral, two key benefits of unionization, companies can improve efficiency and thus prosper in long run. This can pay dividends to a company internally, indirectly reducing costs. For example, the unionized workplaces, such as Costco, experience significantly less employee turnover than unionized
A rising ROE suggests that a company is increasing its ability to generate profit without needing as much capital. It also indicates how well a company's management is deploying the shareholders' capital. In other words, the higher the ROE the better. Falling ROE is usually a problem. CAGR: Operating income, % Operating income (EBIT) measures a company's earning power from ongoing operations and it largely used by investor because it excludes the effects of different capital structures and tax rates used in different companies.
Crystal Diaz MGT 451 Professor Widman June 13, 2010 1)What does customer satisfaction mean to you and how could you measure that in the stimulation? As Anderson, Fornell, and Rust state, “To compete in such a world, firms must strike the right balance between their efforts to compete efficiently and their efforts to compete effectively.” Two arguments were discussed, one that customer satisfaction and profitability are well-matched. For example, customers that are satisfied can decrease, “the time and effort devoted to handling returns, rework, warranties, and complaint management, while at the same time lowering the cost of making future transactions. The second theory believes that, “ increasing customer satisfaction should increase costs, as doing so often requires efforts to improve product attributes or overall product design.”
Colander (2010) explains the role of the firm in production and how firms strive to maximize profits through maximizing productivity and minimizing costs. Reality indicates firms predominantly operate smoothest when firms find the most efficient balance between productivity and cost. To accomplish this firms make short run and long run decisions. Long run decisions include consideration of all possible techniques because all factors of production are variable. In contrast, short run decisions include constraints because fewer factors of production are variable (Colander, 2010).