Adopting a simple profit-maximising perspective ..... can have Essay - 2

Adopting a simple profit-maximising perspective ..... can have positive impacts for a firm,Using examples where appropriate, discuss this assertion - Essay Example This paper will examine the positive impact of the firm by applying the profit maximization strategies and perspectives. Different aspects of profit maximization of the firms and their strategies in order to maximize their profit will be studied in this paper. Some firms achieve its profit maximizing objectives by developing and implementing several strategies by motivating its employees and managers, improving returns on investments, and increasing product awareness etc. Competitive strategies that a firm implement to maximize its profits are as follows: A firm can destabilize its competitors by increasing its market share and sell the products or services at the same prices as competitors do to maximize its profit and creating a positive impact on the firm. A firm having the capability to produce the product at low cost can maximize its profit easily and in short time(Business Plan Hut 2012). A firm uses differentiation strategy usually to gain a competitive advantage over the existing workers inside that firm. Profit maximizing firm adopts this strategy when a customer’s desire and wants are so varied that a consistent product do not satisfy their desire. When customers are placing more value on the differentiated products that a firm is providing to them, then they are force to pay high price to that firm which helps it to maximize its profit(Business Plan Hut 2012). To maximize a firm’s profit and creating a positive impact on that firm, a focus or niche strategy must be huge to give away a healthy profit to that firm. The firm that employs this competitive strategy to maximize its profit experiences a loyal customer base. This competitive strategy helps the firm to maximize its profit that has a positive impact on the firm. Focus Strategy tends to be beneficial for the firm to maximize its profit when the following factors are set: Oil companies believe in long-term profit maximization and avoid large short-term losses and show their