Naz
Active member
Vegas Inc has calculated a statistic of which business generate the most profit per worker. When looking at average profits per worker, its clear that companies which create wealth through capital are on top.
While most people’s sole goal is to generate profit from their work, for the owner, other business activities such as building, selling and providing services may also have a positive impact.
But how profitable can companies be without putting the resources into other endeavors? Taking that into consideration, are we looking at a really profitable business, or merely efficient?
A study done by the International Labour Organization, economists estimated how much additional economic growth could be achieved if companies invested their profits. The study concluded that if companies had the following principles and actions, then they would achieve additional growth:
1. Categorize their activities into the highest and lowest value chains – particularly if activities within lower value chains are currently unproductive.
2. Identify opportunities to improve human capital and capabilities, as well as allocate fixed and variable costs efficiently.
3. Improve their managerial and senior leadership skills.
4. Plan and invest in new and existing facilities and equipment, and in new technologies.
5. Locate their activities to the markets and consumers that are most likely to sustain or improve sales and profits.
6. Explore opportunities to acquire other companies or businesses or parts of companies that would improve their competitiveness and lead to a better level of innovation and to generate new business models.
7. Generate greater returns from the capital they invest – by diversifying their investment portfolio.
8. Treat their workers well and help them achieve the best possible standards of living.
? Share your opinion related to this article.
While most people’s sole goal is to generate profit from their work, for the owner, other business activities such as building, selling and providing services may also have a positive impact.
But how profitable can companies be without putting the resources into other endeavors? Taking that into consideration, are we looking at a really profitable business, or merely efficient?
A study done by the International Labour Organization, economists estimated how much additional economic growth could be achieved if companies invested their profits. The study concluded that if companies had the following principles and actions, then they would achieve additional growth:
1. Categorize their activities into the highest and lowest value chains – particularly if activities within lower value chains are currently unproductive.
2. Identify opportunities to improve human capital and capabilities, as well as allocate fixed and variable costs efficiently.
3. Improve their managerial and senior leadership skills.
4. Plan and invest in new and existing facilities and equipment, and in new technologies.
5. Locate their activities to the markets and consumers that are most likely to sustain or improve sales and profits.
6. Explore opportunities to acquire other companies or businesses or parts of companies that would improve their competitiveness and lead to a better level of innovation and to generate new business models.
7. Generate greater returns from the capital they invest – by diversifying their investment portfolio.
8. Treat their workers well and help them achieve the best possible standards of living.
? Share your opinion related to this article.
