I’m going to talk a bit about what I have learned in business subject from the beginning until now such as the various aspects of a business which affect its ability to make a profit and the effects that form of ownership, ethics, managerial functions, management style, organizational structure and production management decisions have on a company’s competitive advantage.
The business is created for making profits by providing product or service to customers. Thus it may meet various aspects that can affect its income such as a management decision by hiring too many employees that can incur excessive expenses, hiring employees who lock proper skills that can have as consequence efficient production and possible lower revenue, paying excessive salaries to employees and utilizing space poorly it incur excessive expenses, and paying insufficient salaries to employees that can have as impact an inefficient production and low employees morale.
A bad way to do or make marketing decision can have some effects such as create a product for which there is no target market that can incur excessive expensive and no revenue, insufficient revenue when it prices a product too high, and use advertising that is not to the target market and fail to not can have as excessive expenses and insufficient revenue.
And when a firm borrows more money than necessary it implies excessive interest expenses and if it does not borrow sufficient funds, the firm will be unable to expand the business therefore, all of aspects previously quoted have an impact as lower profits.
However, a company can have a competitive advantage by respecting ethics and responsibilities to customers and employees because when the firm treats correctly employees establish a program to receive and resolve complaints and conduct surveys to assess employees satisfaction then the employees will be satisfied and work