Increasing Business Profitability

WHAT IN ANYBODY’S THINKING INCREASES BUSINESS PROFITABILITY

Let us look at those factors of business that really make the income increase. To say this, does not mean that other factors are not relevant. But from this argument we can act as we intend to delineate the factors of production, we can also react to pointing out those key factors that keep your business set to sufficient profit making. In the opinion of many who have taken the time to study business competition and competitiveness. There is hardly any strategy in the context of the present development that can guarantee a relaxed confidence insufficient profit. To this properly, there is a need to highlight the resources available to a good set-up enterprise. Remember that resources are defined as investable wealth known as inputs into a firm’s production process.

Some of these resources are;

  • Human Resources- Experience/ adaptability, training /intelligence/judgement/insights/commitment/work-force Loyalty.
  • Organizational Resources- Formal Planning, Controlling and coordinating systems and reporting structure
  • Technological Resources- Trade secrets, Trademarks Patents.
  • Reputation Resources- Reputation with customers, Brand-name, real product efficiency, reputation with suppliers.
  • Financial Resources- The capacity to borrow or realise funds.
  • Physical Resources – The sophistication/Location of operational plant/ equipment.

A glossary of the Resources penned down would put the high profit or sufficient profit factor on No. 1 Human Resources- which is Human Resources–Experience/adaptability training /intelligence/judgement/insights/ commitment/work-force Loyalty.

It should be of note that these facts of the No.1 resources called Human Resources are in itself loaded. It contains as many doses of what can operationally inject profitability into an Enterprise. It becomes of every good, / performing and result oriented management to key its motive. Because in the management of the structural and technical, the Human aspects cannot be widely separated, they all interact, but the interaction is greased from the Human Resources capital. It is from this set of capital (Human Resources) that management has to balance obligations and undertakings of the enterprise. The balance of these obligations must move management services in the streamline of down the business links like;

  • To act loyally and honesty in carrying out the policy of the enterprise and not undermine its image or reputation.
  • Accept responsibility for its work and its subordinates; not abuse its authority for minimal-gains.
  • Not to injure or attempt to injure, the professional reputation prospects or business benefits accruable
  • Always comply strictly with the law (objectives, policies, procedures and rules) of the enterprise. Management realising the importance of Human Resources capital would operate within the spirit of articles establishing the framework.
  • Management to order its conduct so to uphold the dignity, standing of organizational reputation. The policy of collective business activity down the line-business departments is a strategy of professional tough to clients.

Still working on human capital to Increase sufficient business Profitability

{The only career open to ambitious youths is business, therefore enterprising is only beneficial when sufficient profit is assured.}

  • Human Resources (HR) as the driver of the firm’s income and profitability sufficiency as earlier narrated is the most cared. It is comprised of experience/adaptability/training/ intelligence/judgment/insights/commitment/work-force-Loyalty. All these are human propelled. It may be argued that sufficient profit lies in other resources like factory space, structure and equipment-No. The capital No Specifies the need to underscore the fact that profit making is most harnessed with team-work, in view of the importance of teamwork this note will deal a title to explain the term teamwork. As the idea of involvement has taken hold, the team concept has taken forms and sizes. There are basically two major types of teams, functional teams and cross-functional teams. Functional teams mainly are composed of similar work areas. Most members are a closet process, in other words, they understand the rudiments of the process. The need will also arise here to explain what a process is. A process is an agreed upon set of steps to achieve an aim. A cross-functional team is usually created on an ad-hoc basis to accomplish a range of purpose within a specific time frame. The important remark here is that human intelligence is the Syco-motor that propels all the activities in (HR). After all, the objective of an economic system is to provide goods and services to customers. In so doing, aiming at improving the standard of living. It is, therefore, the duty of the HR as a department to understand the points where profit is made. It is pertinent for the management to know and underscore the stakeholders and their importance. This is prime because to keep and maintain the other resources for effective use, HR must coordinate.

Summary of the Management points advanced in this paper for maximizing profit in a corporate set-up-firm, company. In fact, any business enterprise is the same with a little or minor difference.

  1. Understanding the stakeholders of your business or enterprise. Respect and regard them without unnecessary blowing their ego.
  2. On the part of your work-force, enhance their welfare optimally without prejudice alert when performance is below; fire when a factor among the volume is about to upset the system. Be sure that good reasons are directed to the line-down departmental heads to see why management acted that way.
  3. (a) If your firm is a resource-based model of average returns, ensure that each department is competent.

(b) And being so, ensure that independence and authority though, reports accordingly, is unique in resources and capabilities. Through this system of checks, departments or resources can provide itself basis for the strategy to ensure basically;

(i) The primary source of its returns

(ii) Consistency on the method that ensures the best sufficiency profit process.

  1. That HR is made up of manpower which “hangs” and directs the investable wealth known as inputs for a firm. The production process-such as capital, skill, equipment, the skills of individual employees, patents, special knowledge referred to as talents. The HR co-ordinates tangible and intangible resources. This is why most big, world based companies known as conglomerates hold on their personnel as their most cherished resource. The investment they put in the training of their personnel is monumental. This attests that personnel high or low defines the company status and its sufficiency profit expectation or otherwise.
  2. That adequate care must be maintained to underscore the importance of stakeholders. This is repeated in this submission to hint the prime place it occupies.

i.    The parties involved in a firms operations are;

ii.   Capital market stakeholders. These are shareholders, financers of the firm.

iii.  The product market stakeholders: These are a firm’s primary customers, agents, distributors. All players in their distributive outlets, etc. –suppliers, Host Communities and the work-force union.

iv.  The organizational stakeholders; -all staff members, senior and junior-management and non-managerial.

  1. Improved quality product: The quality of any product; or service is the overall satisfaction the buyer or customer gets from it. Therefore quality cannot be guaranteed by what the manufacturer produces, but by the perception and the satisfaction the user gets. To satisfy the quality test a product must conform to;

a.  Good or nice for use

b.  Product meeting or satisfying expectation

c.  Must conform to the standard, ie no reaction after use. Must be reliable.

  1. Quality must comply to consumer, commercial or engineering goods or products standards.
  2. Value: As said in the earlier analysis, a value is a product mover. This is because an item without value cannot meet the market requirement and as such remains redundant.

To sum up, all the value-chain as analysed will improve productivity, quality and overall sales to ensure sufficient profit.

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