to a private company priority is to obtain the greatest possible profit.It is axiomatic that characterizes the state of today's economy.When a company says that in addition to the profit of its care of the environment, image and other things - which means that their care is only in the context of increasing profits.Companies that do not allow themselves to think about profit, and care for the welfare of society, unable to stand the hard pressure of competition and leave the market.
to increase the profits of all good.So, the way to increase profitability often are at odds with social objectives.Profitability - is a key indicator for the company.It shows the ratio of income from sale of goods or services to the costs.Thus, this figure can be improved if, other things being equal, increase revenues or reduce costs.
private company can not look for ways to improve profitability, because the profitability is directly linked not only with profit, but also the most simple and reliable way to improve it.The Company is not always able to increase the volume of production of the commodity, because: firstly, its resources are limited and secondly, take away market share from competitors is not so simple.On the other hand, can increase profitability almost indefinitely.And it turns out that the company, which produces a very limited number of products at low cost, can count on the fabulous profits.That, by the way, we can see the example of trade with luxurious hand-built cars.
Let's see how companies manage to increase profitability, and how it relates to the public interest.For starters, take the way to increase the profitability of sales. all technology sales success boil down to, to force the buyer to buy at high prices that really does not have much value.To this end, it copes advertising, inspiring the customer that purchased the goods they really need it.In addition, the important role played by the company's image.
Anyway, the high profitability of sales can be attributed to a deception of the buyer.After all, he did not pay more for the product, and for the "air": some associations relating to the goods that were inspired him advertising the name of the company or its personnel complaisance.It is unlikely that such ways of increasing profitability are beneficial to the economy and entail the improvement of public welfare, although it is especially no one claims.
If you analyze ways to improve the profitability of production, here we observe an even more unpleasant consequences.The company, in fact, may choose to only two main ways to reduce their production costs.The first way - it is to save on labor force.That is, lower wages, maintaining the previous level of work performed by employees or employees of extra work load without increasing wages.Usually, for this purpose, various tricks, which reduces the degree of satisfaction with the working people.
second way, saving on raw materials, has more on the customer.Together with a decrease in the cost of raw materials from which the manufactured product is reduced and the quality, and hence the quality of the finished product.At the same time, as the results for your company does not, the buyer thinks that purchases goods of the same quality as before.
As you can see, the way to increase profitability reveal some contradictions between the interests of the company and the interests of the public.Each side behaves quite logical from his point of view, however, a sharp conflict of interest makes it impossible to establish a stable economic system.
