Examples of profitability in the following topics:
-
- A for-profit business is an organization engaged in the trade of goods, services, or both to customers with the goal of earning profit to increase the wealth of the business's owners.
- In contrast, a non-profit organization is legally prohibited from making a profit for owners.
- A mutual-benefit non-profit corporation can be non-profit or for profit.
- For example, a manager of a for-profit company may be able to motivate employees through bonuses for sales targets or profit sharing.
- This strategy cannot work for a non-profit or mutual-benefit corporation.
-
- For-profit and non-profit organizations have different primary objectives and marketing strategies.
- The difference between a for-profit's messaging strategy and a non-profit's messaging strategy is related to the primary objectives of each type of organization.
- For-profit marketers measure success in terms of a company's sales and profit; a for-profit's continued existence is contingent upon its profits.
- In contrast, non-profit institutions exist to benefit a society, regardless of whether they make a profit.
- While non-profit organizations are allowed to generate profits, the funds must be used in furtherance of the organization's mission rather than as payouts to any stakeholders.
-
- There are a variety of types of organizations, including for-profits, non-profits, volunteer associations, and corporations.
- They can be either for-profit or non-profit.
- In contrast, a non-profit organization (NPO) is legally prohibited from making a profit for its owners.
- While a for-profit's managers are concerned with profit margins, a non-profit's managers must always be aware of their charitable purpose and ensure that the organization's operations conform to those purposes.
- Associations may take the form of a non-profit organization or a not-for-profit corporation, so communication structures and strategies for small and large non-profit and for-profit organizations may apply.
-
- These can include profitability ratios, efficiency ratios, activity ratios, and debt ratios.
- Ratios used to determine a project's health include operating margins, profitability margins, efficiency ratios, and debt.
- Operating margin and total margin calculate the revenue a project is producing over expenses (a profitable output ratio).
- The goal of process control is increased efficiency; ratio analysis uses a wide variety of point in similar projects as benchmarks to denote where efficiency can be enhanced, and underlines differences in profitability and efficiency that may sway resource allocation for the organization in the future.
- The goal of any organization is profits, and ratio analysis allows organizations to see where dollars are being invested and the results on that investment in terms of profitability percentage.
-
- Attractiveness refers to the overall industry profitability.
- An "unattractive" industry is one in which the combination of the Five Forces drives down overall profitability.
- In this state, available profits for all firms are driven to normal profit rates.
- This results in many new competitors and eventually decreases profitability for all firms in the industry.
- This involves how many firms are in the industry and how their competitive dynamics reduce profitability.
-
- For businesses, productivity growth is important because providing more goods and services to consumers translates to higher profits.
- Profitability is both a result and a criterion of business success.
- Profitability of production is the share of the real process result that the owner has been able to retain in the income distribution process (profits earned).
- Factors describing the production process are the components of profitability, which are revenues and expenses.
-
- Empirical research on the profit impact of marketing strategy indicates that firms with a high market share are often quite profitable, but so are many firms with low market share.
- The least profitable firms are those with moderate market share.
- Porter explains that firms with high market share are successful because they pursue a cost-leadership strategy, and firms with low market share are successful because they employ market segmentation or differentiation to focus on a small but profitable market niche.
- Firms in the middle are less profitable because of the lack of a viable generic strategy.
-
- As long as a business can cover its minimum costs, it is "breaking even" and can remain in business even if it is not turning a profit.
- If the company sells fewer than 200 tables each month, it loses money; if it sells more, it makes a profit.
- A break-even analysis is typically depicted by a graph showing the midpoint between profit and loss with the axes as units sold and price of goods sold.
- Typically, companies want to produce above BEP in order to make a profit and will adjust their output level to surpass the break-even point.
-
- The technology life cycle describes the costs and profits of a product from technological development to market maturity to decline.
- The technology life cycle (TLC) describes the costs and profits of a product from technological development phase to market maturity to eventual decline.
- Research and development (R&D) costs must be offset by profits once a product comes to market.
- Thus TLC is focused primarily on the time and cost of development as it relates to the projected profits.
-
- In for-profit organizations, management's primary function is to satisfy the stakeholders.
- This typically involves making a profit (for the shareholders), creating valued products at a reasonable cost (for customers), and providing rewarding employment opportunities (for employees).
- However, management is responsible for implementing new ideas and is required to focus on improving the profitability of the business as a whole.