BusinessManagement

Analysis of the profit of the enterprise. Who is the winner?

The modern economic system is based on independent economic entities that are involved in various kinds of relations with other entities with one single goal - profit making. The desire for it, in the opinion of the ideologists of capitalism, is the driving force that should lead us to a state of complete social harmony and universal prosperity. In the opinion of the supporters of the liberal economy, the profit should remain the only factor in the economy, that is, the influence of the state should be reduced to zero.

Thus, profit is the most important indicator both for the owners of the enterprise and for consumers of its products, therefore the analysis of the profit of the enterprise Is one of the fundamental processes of doing business. The analysis means checking the final profit for compliance with the planned indicators, as well as determining its main sources and weaknesses of the enterprise.

Profit analysis of the enterprise Allows us to determine how effectively it works from the point of view of itself, as if the enterprise were a thinking living being. It is on this approach that modern economic science is built. That is, the profit of the enterprise must grow by any means - it is considered an absolute good, even if the interests of employees of the company, consumers of products and even shareholders are violated at the same time.

Suppose the following situation. Shareholders are interested in the rapid withdrawal of dividends, but the profit analysis of the organization Indicates that such an action will lead to a significant drop in profits in subsequent periods, because the main source of income is a group of goods that requires constant reinvestment of profits in innovation. In this case, the right act of the manager, from the point of view of modern economic science, will reduce payments to shareholders, but increase profits, despite the fact that the actual owners of the company will remain unhappy with such a step.

As for the company's employees, the situation here is even simpler. Quite often the analysis of the profit of the enterprise Indicates that most of the costs that can be easily reduced are related to the payment of labor. Therefore, in the interests of the company, but not in the interests of its employees, it will reduce wages or increase the amount of work performed. A similar decision must be made (in theory), even if it is a question of reducing the wages of the people themselves who make decisions.

Then, perhaps, an increase in profits defends the interests of buyers? In fact, the analysis of the profit from sales is carried out in order to reduce costs and increase revenues, which means that, other things being equal, the price should increase, and the cost of production will decrease, which will negatively affect the quality of products. Of course, buyers are not interested in this.

In this case, for what purpose is the profit analysis of the enterprise carried out, And who is the winning side of its increase, if in the conditions of the presence on the market of predominantly large corporations, not one party involved in economic relations has a direct benefit from this? The company, which first of all turns into a self-controlled system sooner or later, wins its profit growth, first of all, with its interests, which consists in completely capturing all competitors and turning into a monopoly.

Modern economy is similar to the battle of titanium corporations, which serve people (shareholders, managers, ordinary employees and buyers). As far as this situation is in favor of public welfare - the issue is controversial, and supporters of various economic ideas have been unsuccessfully defending their arguments on this matter for several centuries.

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