Mr. Gupta is supply chain manager of OLB Ltd. and company is now focusing on manufacturing of E scooter. By looking to the customer demand, company is constructing largest manufacturing set up in India. In the dynamic market, you would face tough competition from different companies. Analyze and suggest a different level of strategies that you will implement in the firm that can improve overall business profit.
The following are some of the several levels of techniques that I will execute in the firm to boost overall business profit: - Get rid of any products or services that aren't profitable: The profitability of an organization will be driven by careful cost control. Although the firm may discover ways to minimize expenses, it is critical not to sacrifice the quality of your products and services. Using activity-based costing to determine the true cost of various company activities will be efficient. By allocating proportions of all your expenditures - such as employees, buildings, and raw materials - to specific activities, activity-based costing will show you how much it costs to carry out a certain business function.
I'll have a look at OLB Ltd.’s proposal. I'll take a close look at what the company offers, who you sell it to, and how much you charge to determine if there are any areas where you can improve. Pricing should be reviewed on a frequent basis. Due to market changes, the company will be able to boost prices without jeopardizing sales. However, any price increases should be put to the test before becoming permanent. In the new market, I'll discover the best customers. Focusing on the most profitable customers will be critical—even if it means letting the less profitable ones go—-and, if done correctly, might enhance profitability.
We'll buy more efficiently by negotiating better prices with suppliers and reducing waste across the board. I'm going to focus on my sales efforts. Sales will be the two primary techniques for increasing profitability: selling more to existing lucrative clients and identifying similar customers to sell to. Moving into new market areas will revolutionize the company and, if done successfully, will result in considerable profit increases. Expanding into new markets, on the other hand, can be risky, and mistakes can be costly. Businesses will cut waste costs while maintaining their competitiveness.