Working in, or leading a bit company is a difficult task. With k a variety of challenges to navigate and the need to constantly be able to improve, the global economic scene is rapidly changing. The changes factors in the environment and the company’s own internal dealing all impact its operation, and especially the revenue it can amass. Such things as internal management and leadership can make a large impact.
Management allows corporations to utilize their human, monetary and physical resources to their best value, maximizing potential income and minimizing losses. Human resource managers can effectively assess the needs and goals of an organization, adjust the workflow accordingly, and create teams for addressing emerging problems (Kraus et al., 2011). Leaders work in a similar framework, making sure that each element of an organization works following the general vision of the organization, and formulating innovative approaches for the future. Both procedures improve the operational efficiency of companies and give them the ability to procure better profits. External factors such as a business’s reputation also have a significant effect, as it exists in cooperation with the environment around it (Carroll, 2013).
Reputation and the company’s part history that contributed to it defines the perception of the company held in the public eye, and the relationship a business can have with both its partners and customers (Factors impacting financial performance 2006). In the age of the internet, things are much more easily shared, stored, and recorded, meaning that a public record of an organization’s actions usually exists. It can have both a positive and a negative influence on the client base, therefore affecting a company’s business opportunities and prospects. Another factor that has a significant impact is demand in the sphere (Mücka).
Trends often change, and with the course of the year, some products become more relevant than others. Such factors are marketing or historic events have an impact as well, shaping the way people organize their purchasing decisions. With the rise in demand, if a company can keep up with the increased need, its profits can rise considerably even if the prices are lower than usual. By effectively adjusting to changes in customer demand, companies can ensure that their losses during specific periods are minimal and that the profits are optimized.
References
Carroll, C. (Ed.). (2013). The Handbook of Communication and Corporate Reputation. Web.
Factors impacting financial performance. (2006). Cash Flow Forecasting, 41–75.
Mücka, S. (n.d.). Price Elasticity of Demand and its effect on Revenue. GRIN. Web.
Kraus, S., Pohjola, M., & Koponen, A. (2011). Innovation in family firms: an empirical analysis linking organizational and managerial innovation to corporate success. Review of Managerial Science, 6(3), 265–286.