Profit Maximization
Name
Affiliation
Introduction
Changing the profitability of a business calls for a lot of the efforts not only by the management but also by the overall efforts by the employees of the organization. As for the case of the case study there are various ways that could be used to increase the profitability of the café. This will range from internal changes to external ones. For this reason, this paper will discuss the efforts or the methods that could be adopted to change the current status of the café financial or towards making profits.
The owner of the café should consider that the management of the café does not only lie to him but also to other employees of his/hers. Since the café has been profiting for the last decades from only the locals, then, one of the first consideration that the owner has to ensure to put in place is corporate social responsibility (Levinthal & Wu, 2010). The owner of the café has to ensure that the people he gets profits from should be consider at the end of the day with the profits obtained. This could be the reason why the people in the locality have lost value of the café and could not be able to get there hence prefer other café in the areas. The owner for example should take part in cleaning of the local town. This is one of the ways that could bring back the customers to the café noting that the owner of the café is considerate of the environment around his business or around the people.
The second way to ensure that the business makes profits is increasing the whereabouts of the business to the people in the area. Marketing the next option that should be adopted by the owner of the business (Nagurney, 2010). There are various forms of marketing that the owner could use in order to inform the people about the business. This is accordance to the competition he/she might be facing in the locality. The business should adopt bronchus to market the business to the clients in the local area. In addition, the owner of the business should use the local media to advertise the business. The other marketing option that could be use is using social networking sites to send the message about the café to the customers within the locality having noted that the area has low population. The limited number of people is not only an added advantage but also a step towards maximizing the business profits.
Conclusion
It is vital to conclude the above paper by stating that costa’s café is a sole proprietorship form of business, therefore, it is the due responsibility the owner to consider the local in decision making in order to gain interest if not the needs and demands of the people/customers. The very last concern is that the business should also sell products that are of interest to the clients and to shy. Using all the above methods will improve the business profits both in short term and long term.
References
Levinthal, D. A., & Wu, B. (2010). Opportunity costs and non‐scale free capabilities: profit maximization, corporate scope, and profit margins. Strategic Management Journal, 31(7), 780-801.
Nagurney, A. (2010). Supply chain network design under profit maximization and oligopolistic competition. Transportation Research Part E: Logistics and Transportation Review, 46(3), 281-294.
