Finance Essay Example | Topics and Well Written Essays - 1250 words - 1

Finance - Essay Example Although, it is practically not possible to control some forces that operate outside a business, such as availability of the capital and the world economic conditions, management need to inspire and guide internal operations in helping ensure a secure competitive position within the marketplace. Moreover, both innovation and adaptability are essential in helping gain market share, and stay profitable in the event of fluctuating economic climates (Hill & Westbrook, 1997). Research show that for a business to remain being competitive in the market, it has to always impress innovative services and products, a market plan and a fair pricing (Hill & Westbrook, 1997). In meeting the high standards, there is need for an operation efficient to be implemented as it helps in keeping the price competitive. For a well-run business, a shared goal is often incorporated with a view to inspire a spirit of co-operation among its departments (Humphrey, 2005). In challenging times, dynamic leadership i s crucial for maintaining a profitable business. Excellent performance is credited to increased productivity to the main company. Increased or impressive productivity is the central core of many companies (Menon, et al. 1999). Therefore, the increase in the profitability capacities of a company is placed amongst the central targets of any company (Menon, et al. 1999). In the case of Berksire Threaded Fasteners Company, its profitability is challenged by several factors, amongst them internal policies and external market factors, amongst others. In this paper, an analysis of the impact that can be aroused upon deployment of various actions will be investigated. Body For a situation where the company could have dropped the 300 series as of January 1, 2000, there is an effect that action would have on the profit for the first six months of 2000. In this case, it is noted that consumers often expect value (Armstrong. 1996). These consumers demand an effective customer service given that they are accessible to data alongside product information. Given the internet services, it is possible to make comparison of features and prices. This helps consumer forces companies to change into transparent market machines. The profitability potential accorded to 300 series surpasses the potential exhibited by the other three products. This reflects on the aspects such as the cost of production, as well as the after production expense. Focusing on the initial, 300 series is the most economical in production. This reflects on both the input and the labor cost. The comparison from this dimension indicates that 300 series is the least expensive of the three. While evaluating on a summative angle, the cost of production associated to the three products amounts to $ 3433. A further analysis of this figure indicates that 300 series only accounts for approximately 26 percent, while the other two presumes the rest. 100 series has the highest share with about 40 percent. The only differe nce in terms of production of the products is the rent cost for 300 series. Over this regard, several aspects of the production line can be isolated. Amongst them is the productivity of the line, as well as the possible future dynamics. This is based on a possibility of equity in the production numbers (Armstrong,