Introduction:
This study investigates empirically the relationship between the uses of profit sharing schemes to increase company performance. It uses the control factors that affects company performance to do the analysis. The study analyses by using the dependent variables; profit margin against the dependent variables, Firm size, ownership concentration, age of the firm, the growth of sales, and the scheme. The study establishes that there is a little effect of the size of the firm to the performance of the firm and as this is affected by the life cycles of the products of the firm. Ownership concentration of the firm on the other hand affects the performance to the extent of the voting rights. The study further establishes that age of the
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It’s size and its inclusion of the economies of scale concept may occur for various reasons, such as organizational reason (specialization and division of labor); financial reason (a large firm can get a better interest rate and also a better discount rate due to a large quantity that it buys); technical reason (division of high fixed costs across large number of units) and many more. In line with this concept then it is evident that a positive relationship between the profitability and the firm size is expected. Carl Ericson (2011) of Atomic Object in his research on profit margins and the influence of Firm size on software development firms concluded that the bigger the business is, the lower it's profit margin. Sagework’s Mary Ellen Biery (2012) in her report ‘Does size matter? Sales growth, margins by company size’ emphasizes that the “smaller is higher rule” only works when a small firm is growing but only up to a point from which the profit margin stabilizes regardless of the business growth …show more content…
Theoretically, the business pays no marketing cost for the returning customers, the Therefore very little expense is spent on attracting new customers. As the business ages and some marketing cost decreases such as advertising, promotions and coupons then the profit margin is expected to rise (Ashe-Edmunds, 2012). Sumit K.Majumdar (1997) suggests that in India older firms are found to be more productive and less profitable whereas the larger firms are conversely found to be more profitable and less productive. These disparities, he says can be attributed to rising restrictions on industrial policies that have been followed in most countries over the last
With the increases in profit steadily going up they should continue to rise in that same pattern. Other things the company is doing will help them as well. They have been coming up with ways to get new customers through he door and they have started offering a credit card for the company. The company is also seeing improved sales in the youth and women’s sections which is helping to improve profitability.
Comprehensive Analysis Liquidity Liquidity is defined as the ability to convert assets quickly into to cash (Liquidity, 2014). A good standing liquidity is good for companies as well as investors and lenders to the company. For the company it’s a great indication as to whether it will meet short term maturing obligations or not. For creditors and investors, a good standing liquidity portrays the ability of how quick a company can pay off debts. Current Ratio (Current assets ÷ Current liabilities)
D2 evaluate the financial performance and position of a business using ratio analysis. In this task I will be evaluating all the ratios and explain how it will impact on Kai Enterprise. The ‘Gross Profit Margin’ for Kai Enterprise is 59.1%. This is a decent rate as it is more than 50% which means that the business has a higher portion of money which is accessible to spend on operational payment and also the business retains.
STRENGTHS: 1. Close relationships with customers and geographical proximity of supply network makes it easy to adapt promptly and flexibility as per the customers on-going changing needs. As ToolsCorp’s supply management rely on the large retailers locally, it enables to reach to the customer easily and build close relationships with the customers. 2. The company offer the wide range of products to cater the needs of different segments of customers as per their different households needs.
The strategies and operations that Midas uses have both positive and negative impacts upon its operating efficiencies. Offering limited services have the advantage in the fact that the company requires limited inventory which allows it to store the tools and spare parts needed to perform operations close to where they are needed. Having limited inventory of course helps the company in reducing costs considerably. Cost of both the storage facility needed for the equipment and the cost of labor needed to handle them will be considerably lower. Fewer inventories also saves time because they are easier to locate from anywhere within the store.
The family controls these stages. However, one strength utilizing the individual life span theory, as it relates
The profit margin that a company maintains is a very important measure of success and health of the company, it can be calculated
Millenium Micro Group: Helping SMBs Survive the Competition Business competition is on an all-time high; your organization faces smaller, more flexible contenders on one side, and bigger and more powerful ones on the other. As such, you must, as an SMB owner, have in your arsenal tools that you can use to quickly respond to the ever-changing and competitive nature of the industry your business is in. No Business Like the SMB Business Small and medium businesses are at a very interesting spot. They are not too big to be a target or for big corporations to contend with and be considered a threat but also not too small to miss opportunities in the market.
For the business to sustain and growth, it must continue to increase company’s profitability. Finding the right strategy to increase profit involves knowing which area of the financial are working and which needs improvement.
The process of aging in not an unfamiliar topic to society and is an inevitable phase of life. Since 2011, the number of older individuals are increasing annually particularly those from the baby boomer generation. The life expectancy has been increasing with people living longer thanks to modern medicine. These occurrences are proof that civilization is growing exponentially, however the process of aging also means that the older individuals are facing dilemmas such as decreased physical functions, financial instability from retirement, and abuse. Even older adults who are independent may face some limitations.
Regarding the issue of “aging”, there have been several theoretical perspectives that address the issue of the growing number of elderly in our society. Social gerontologists study aging and the elderly, and recently, this has grown in importance as the elderly have become the fastest growing segment of the population. Aging is the combination of biological, psychological, and social processes that affect people as they grow older, yet these biological, psychological, and social processes are not the same and may vary considerably within and across cultures. Beginning with functionalism, which was brought about in the 19th century by Comte and Durkheim, it emphasized large-scale social institutions and processes. It focused on understanding the role or contribution of some event, activity or institution to the working of society as a whole, not individuals.
(Weiss, 2012). As a majority of our population ages, ageism becomes a growing problem
According to the medical encyclopedia, Medline Plus, on their discussion on the Aging changes
After that it can shift its focus on another segment and so on, which therefore leads to growth and
The attractiveness is the overall profitability of the industry whilst unattractiveness drives down profitability. Thus using this model, it implies that profitability or the return is a constant integer, across firms and industries; however various studies established that different industries have different levels of profitability due to their diverse structure and circumstances they operate in. The model can also be utilized to develop an edge over competitors and rudimentarily for identifying a niche whether it is potentially feasible to manufacture new products, services or open new