Wednesday, 12 April 2017

Business Results

Business Results

In a corporate world, A business results is the excess of the business results are obtained within a certain period. Business results are measures of the product and operational performance of a business. Results demonstrate the quality and value of products and services that lead to customer satisfaction and customer engagement.

According to the theory of the rest of the business results the level of profit on each cooperative and company are usually different on every type of cooperatives and companies. There are several theories that explain that differences are as follows:

The rest of the business results of the theory of risk (risk bearing theory of profit). 

According to this theory the economic gains above normal will be obtained by the company's risk above average for example company engaged in exploitation oil.

The rest of the business results of the theory of Frictional (Frictional theory of profit). 

This theory emphasizes that profits increase as a result of friction balance long term (long run equilibrium). For example, the crisis of kerosene years 1970-80s resulted in a very drastic request, and this makes the company got great benefits. Later in the year 1980-90s oil prices drastically down made the company suffer losses.

The rest of the theory of monopolistic business results (monopoly theory of profit). 

This theory says that some companies with monopoly power can limit the output and apply a total price than when the company is operating in conditions of perfect competition. Thus the company enjoyed gains, this monopoly power can be obtained through full mastery over certain raw materials, supply economies of scale, ownership of a patent, or the restriction of the Government.

The theory of the rest of the business results of innovation (innovation theory of profit). 

According to this theory, because of the success of the company acquired business results in doing innovation. For example Steve Jobs who invented the computer, or APPLY the Gillette company always found innovation of razor's products.

The theory of the rest of the managerial efficiency of the business results (electrical efficiency theory of profit). 

This theory emphasizes that companies run efficiently will gain profits above the average normal profit.

The description indicates that in accordance with the concept of a cooperative, the cooperative will then obtain more results from the managerial efficiency, due to the orientation of its efforts to put more emphasis on service businesses that can provide the benefits and satisfaction with the members.

High profit is a sign that the consumer wants more output from cooperatives, high profit is an incentive for cooperatives to increase output in the long run. In contrast, a low profit is indication that consumers want less of the products/commodities handled and its production method is not efficient. Thus, profits provide crucial indication for relocation of the community-owned resources as consumer tastes and demand changes all the time.

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