Sales Profitability Research Articles

The Value of price information in the profitability of hog sales

The Value of price information in the profitability of hog sales

Strategic Planning and the Small Business

In the case of small business, the owner‐manager is most likely to be the individual who establishes corporate objectives as well as carrying out a thorough evaluation of product lines, markets, and future competitive positions. Planning helps in the identification of present areas which have potential for future strengthening. This is sometimes not realised, with some business people believing that planning identifies new areas of product opportunity only. The necessary analysis of the sales history, margins and profits on a product basis reveals patterns of performance which may easily be overlooked in day to day management. The author argues the case for strategic planning in a small business.

Durable Good Monopolies with Rational Expectations and Replacement Sales

A monopoly producer of a durable good is examined under the (previously uninvoked) assumption that the good depreciates, and hence that replacement sales must occur if a fixed stock of the good is to be maintained. We find two ways in which the no-depreciation result, that the monopoly will always (at least eventually) produce a stock equal to that produced by a competitive market, may not hold. If the length of the trading period is nonzero, the limiting stock produced by the firm will be lower than the competitive stock, to ensure the profitability of future replacement sales. If the firm is able to constrain its production capacity, it may choose a constraint that always binds in the sense that it will be impossible for the firm to achieve a stock equal to the competitive stock.

Mail order inventory control

While the share of all retail sales taken by the mail order sector has increased from 4.7% in 1976 to 6.4% in 1982, such companies face special problems when it comes to inventory control. In their paper Alan Waddington and Leslie Chadwick examine the difficulties and demonstrate how successful inventory control can boost sales turnover and profit growth.

Managerial pay and financial performance of small business

The purpose of this study is to examine empirically whether managerial pay of small-firm executives is more closely related to profitability or generation of sales. Conventional economic doctrine supports the hypothesis that chief executives are paid primarily to advance profitability. The contrary hypothesis, given impetus by Baumol [2] and Galbraith [8], asserts a closer relationship between compensation and sales. Previous studies of large corporations have produced conflicting results. Regression analysis of the 78 small firms in this study reveals managers receiving compensation correlating fairly closely with both profitability and sales. The cumulative forces at work in these firms impacting upon managerial pay appear to have wrought a linkage conductive toward motivating managers to be both “bottom line” and marketing oriented.

MANAGERIAL PAY AND FINANCIAL PERFORMANCE OF SMALL BUSINESS

Abstract The purpose of this study is to examine empirically whether managerial pay of small-firm executives is more closely related to profitability or generation of sales. Conventional economic doctrine supports the hypothesis that chief executives are paid primarily to advance profitability. The contrary hypothesis, given impetus by Baumol [2] and Galbraith [8], asserts a closer relationship between compensation and sales. Previous studies of large corporations have produced conflicting results. Regression analysis of the 78 small firms in this study reveals managers receiving compensation correlating fairly closely with both profitability and sales. The cumulative forces at work in these firms impacting upon managerial pay appear to have wrought a linkage conductive toward motivating managers to be both “bottom line” and marketing oriented.

The Short-Run Pricing Policies of Some British Engineering Exporters

An investigation of the pricing policies of British exporters is of particular interest at the present time when devaluation has been used as a means of enabling them to improve their competitiveness. Although pricing policies have received some attention in recent research into the response of exports to changes in domestic demand pressure,(1) and the relative profitability of home and export sale,(2) no specific examination of pricing policies has been published since the current period of international monetary uncertainties began in 191.(3)

Construction Costs of Water Supply and Sewage Networks in Poland 1961-1970

The paper presents the results of studies of the structure and changes in construction costs, as well as sales profitability, of water supply and sewage networks constructed from 1961-1970 in Warsaw and Lodz, Poland. The level of sale prices and building costs of water supply and sewage networks is determined by hydrogeological conditions, cost of removal of other installations, technical and other solutions used by contractors, obstacles met during construction, and the level of estimated prices for construction. The price level is planned by the state in Poland. The included data show that the water supply lines consisted of 46% cast iron, and 54% asbestos cement, with 42.1% of 100-mm diam, 41.5% of 150-mm diam, and 16.4% of 200-mm diam; for sewage networks 30% was 200-mm diam, 19.4% was 250-mm diam, 31.4% was 300-mm diam, and 19.2% was 400-mm diam.

Sales Budgeting for Controlled Growth Objectives

This paper discusses the relationship between sales costs and profitability in profit-type R & D organizations. Simple formulas are presented to show the relationships among some of the more important factors which determine profitability and growth.