After identifying where un-needed expenses are being used, managers can increase profits by reducing the total cost of logistics. Although this is very time consuming, the benefits outweigh the disadvantages, as there will definitely be a loophole that the company can exploit and bring in maximum revenues and low prices for its customers. Customer satisfaction is the most significant as it has a direct impact on the market share. Research shows that it is five times more expensive to bring in new customers than retaining old loyal customers. Another benefit that Multi Future can have through customer satisfaction is that the customer needs are also identified and this can help them align their services
Every business is continually working towards growing its profits. Through profit maximization, businesses can find the best price levels to achieve its profitability goals. This method allows companies to set different product at prices that return maximum revenue and profitability. Profit maximizing prices are important because they have a positive long-run effect on profit, rather than markdowns, which create excitement but inevitably have a negative long term profit effect. In order to find this equilibrium price, a company must determine its consumer’s price elasticity or price sensitivity (Chapter 14 slides).
There are proprietary technology, managerial know-how, favorable access to raw materials, and learning-curve cost advantages. They can take the cost advantages of the existing firms, but the increases cost will reduce the potential profit. Lastly, the government policy will enhance the cost of entry into the industry that means the government regulated monopoly to ensure the affordable product
Because there is consumer sovereignty, the consumer has the choice to buy what good would benefit them the most. Under the circumstance with lack of income, Fury would face the chances of bankruptcy. Overall, a mixed market economy is Nick Fury’s best opportunity to have a successful business due to the stability of a mixed market economy in the US and its support of small businesses. There is a high demand for the type of products small businesses tend to produce in the U.S., and an ever-increasing supply to satisfy that demand. Because of what consumers want in this country, we have high hopes for how this business will fare and prosper within its
3. Competitive Prices Being able to easily contrast prices and quality forces these companies to keep their prices in reasonable and available limits, according to the importance of customer and price elasticity of demand for this product and services. This is a good benefit for the customer because prices continually go lower as other companies lower their prices. 4. Better Information and
The opportunity to make profit by selling products in a foreign market is attractive, especially if expansion in the home market is difficult because of slow market growth, market saturation, or regulatory obstacles. In many cases business growth would be possible only through “stretching” the business globally and enter in new markets. International exposure also enables a company to build its international reputation, which is important for the company especially if it is an industry leader. Profitability also depends on competitiveness, so international expansion is a way of reducing costs in a competitive international market. Access to international markets allows increased scale of production, leading to lower cost per unit.
Free trade agreement allows the agreeing nations to focus on their comparative advantages and to produce the goods they are comparatively more efficient at making, thus increasing the efficiency and profitability of each country. 4. OBJECTIVE OF FTA Free trade agreements typically concern on import & export terms imposed by both agreeing countries. For instances, Import tax, it is one of the critical tariffs, it can impact the market directly, making the imported goods more expensive. Thus, the existence of FTA is to negotiate with partnering country to lower their import tax.
Market orientation does not lead to high satisfaction of customers. However, market orientation does improve company performance. Market orientation treats customers as their assets and reason for the company to exist. It helps to identify customers’ need and produce the products that customers wish for. So, customers are willing to buy the products or services and indirectly increase the company sales and performances.
Building a powerful human capital strategy requires solid facts, measures, and processes for discerning where an individual firm will get the most leverage from its people. This new path to better business performance and distinct competitive advantages relies on the discipline to enact three core principles: Insist on systems thinking, get the right facts, and focus on value. i) Human Capital Management(HCM) usually refers to efforts to manage, develop, and retain the unique capabilities and expertise of individuals and of a workforce. It also consists in identifying the skills and abilities of the individuals and utilizing them in the best possible way to gain competitive advantage. ii) Human Capital Strategy(HCS) Every company needs a human capital strategy that supports its business strategy.
Importance of inventory management. Inventory management involves trading off the level of inventory hold to achieve high customer service levels with the cost of holding inventory. Inventory management is very important point of view, it makes the two important problems that is keep sufficient inventory of the company production and sales activities smoothly and minimize inventory investment to improve the profitability of the company. Inventory management can help business be more profitable their cost of goods sold and by increasing sales. Should not excessive or insufficient investment in inventory.