Revenue Maximization (vs.) Profit Maximization
Profile of Samsung and its financial matrix
Established in 1938
Founder : Byung chull lee, Lee kun-hee
Present CEO : Oh – Hyun Kwon
Headquarters: Seoul, South Korea
Industry: Consumer electronics
Has 285 overseas operations within 67 countries
Revenues: US $ 1,43,069 Millions
Profit: US $ 14,878 Millions
Employs approximately 2,21,700 people
Annual Report for FY 2010 - 2011 http://www.samsung.com/us/aboutsamsung/ir/financialinformation/annualreport/downloads/2011/SECAR2011_Eng_Final.pdf
Profile of Apple and its financial matrix
Established: on April 1, 1976
Founders: Steve Jobs, Steve Wozniak, and Ronald Wayne
Present CEO : Tim Cook
Headquarters : California, United States
Industry: Computer hardware
Total Revenue: US $ 1,08,249 Million’s (FY 10-11)
Profit: US $ 34,205 Million’s (FY 10-11)
No. of Locations: 500 retail stores
Financial Report for FY 2010 – 2011
http://files.shareholder.com/downloads/AAPL/1983127830x0xS1193125-11-282113/320193/filing.pdf REVENUE OR SALES MAXIMIZATION :-
Revenue is essentially another word for SALE’S. or how much of the goods or services that your business produces is sold to consumers.
Revenue does not take into consideration the costs necessary to produce or market your business’s product, so it does not reflect what the owners ultimately receive
Revenue maximization strategy dictates that a business should do what ever is require to SELL as much as of its products, so it can build major market share and a reputation in the market.
Easily helps in entering into new markets.
PROFIT MAXIMIZATION :-
The profit maximization principle stresses on the fact that the motive of business firms to maximize profit is solely justified as being a method of...
Please join StudyMode to read the full document