| Profits |
Profits
Profits may be increased in three ways:
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Changing price
- Increasing sales
- Reducing costs
The success of a business in achieving 1,2 or 3 of the above will affect their overall profits.
Visit this Guardian article and explain why “Boardroom pay rose seven times as fast as average earnings last year” given that the economy was slowing down?
If pay rises will that mean that profits will fall?
Visit this article in the Daily Telegraph and outline the main factors affecting spending. The article states: “Fears about a runaway spending spree grew yesterday with fresh data pointing to a further rise in shop sales last month and a jump in consumer confidence after the latest interest rate cut.”
Are interest rates the main factor affecting spending?
When combining the two articles we see pay has risen (a cost to the company) but confidence has also risen.
According to the BBC profits are falling for Unilever:
“Anglo-Dutch consumer goods group Unilever has posted a 7% fall in first half profits to £1.5bn ($2.4bn).”
By reading the article and visiting the Unilever site suggest reasons as to why unilever profits have fallen – and whether the fall is likely to continue.
So far we have discussed:
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Pay
- Profits
- Costs
- Sales trends
In your view is it likely that Ratner will be able to ‘regain his sparkle’? What are the factors likely to affect the degree of his success?
Clearly business confidence is a factor affecting success – and success affects business confidence. By reading around assess the likely level of business confidence in the UK economy now.
Use the Web to research the work of motivation theorists
Which theorist/school seems to you the one most likely to be able to motivate the teaching profession?
Finally create a Mind Map that summarises your findings.
Introducing OSL