Physical, Financial and Earnings in The Company Today (I)
For each business vary resources objectives and how you have to measure progress towards their achievement. In addition, the objectives in this field do not matter to all managers of the organization, but only to senior management.
Still, physical and financial resources are too important not to consider them. Businesses that handle physical assets should be able to obtain physical resources, be sure of delivery. I all businesses need financial resources. Currently, the objectives of physical resources and provision of capital decisions are taken as noise, rather than as carefully prepared policies.
Is the company dependent on a single supplier of a particular material? There may be a price advantage to buying in bulk, priority and a close relationship. Or should the company find more suppliers for the same resource? This can make independent and lead to lower prices because of competition.
Whatever decision is taken, the objectives should aim to provide the physical delivery required to achieve the goals of market position and innovation.
As for equipment, both the oversupply subsuministro as dangerous. You can not improvise, you have to plan them.
All this requires a capital budget. How much capital is needed and how, and where they come from? In general, managements do not care about the supply of capital until the shoe pinches. Then it is often too late to do a good job. Decisions on these questions lead to conclusions regarding such vital points as pricing, dividends, depreciation and tax policy. Not thinking about the supply of capital and capital targets not delay the development of the company and cancel much of the work done in marketing, innovation and productivity.
Profit
Profit serves three purposes:
- measures the net effectiveness and robustness of the efforts of a business. It’s really the final test the performance of the business.
- is the “risk premium” that covers the costs of staying in business.
- ensures the supply of future capital for innovation and expansion (retained earnings or to attract investors).
None of these three functions has nothing to do with the idea of maximizing profits, as the economist. The three concepts are “minimal.” One goal of profit does not measure the maximum profit that a business can producer, but the minimum that should occur.
Source: www.microcaos.net/negocios/recursos-fisicos-financieros-y-ganancias-en-la-empresa-de-hoy/
image source: www.theproadvisor.com/wp-content/uploads/2009/07/Financial-Strength.bmp