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What is Profit - Literature review Example

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This review "What is Profit?" discusses making a profit in any business organization. This trend is found to be very common in the period of 2008-09 as organizations have struggled to make a profit in this period due to global financial turmoil…
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What is Profit
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Download file to see previous pages Every year organizations adopt various strategies, launch different products and services, run the recruitment process and pursue various other activities. All these activities are basically either or indirectly directed to one goal which is making a profit. These activities are very usual in the business environment. However, the interesting fact is that there are several unusual activities which are pursued by the organizations in order to make a profit.
In simple language, profit is nothing but the excess of revenue after deducting the total expenses from it. Profit of an organization depends on various internal and external environmental factors. If current world business environment is concerned, organizations from all over the world have seen how difficult it could be to make a profit in adverse situations like financial meltdown. The global financial turmoil that started from mid-2008 and still continuing has been proved to be the most difficult period for most of the organizations in the world, especially in the developed countries. Many of the global companies which are operating for several years have struggled to make a profit and most of them have failed to make a profit in this period. The main reason behind this is the sudden fall in demand for almost all the goods and services as the financial condition of the people around the world was badly affected. As a consequence of lowering of overall demand organizations’ revenue has fallen drastically and hence they struggled to make a profit. In order to overcome this situation and get the organization back to profit making track management have performed several activities. They came up with new pricing strategies; they reduced the workforce of the organization, they even sold one or two of their units.   ...Download file to see next pagesRead More
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