Which areas of a company don't generate a profit?
- Thread starter Shavkat
- Start date
Another area of company that doesn't generate income for the company but very important is insurance. Insurance is very important but some entrepreneurs consider it a waste of money.
Yes that's really true
As a businessman, of course, you have to be sensitive to social responsibility in the event of a natural disaster, giving assistance will not be able to make money directly, but is a promotion and instilling your brand image to them, which in the end the product will sell better in the market.
All areas of the business are geared towards enhancing profitability.
I think when companies do primos, they don't make a profit from it. The benefit of it is in the long run rather than Short term.
The area of the company that is not making profits is when a company is standing in the wrong place, because it is not strategic enough so it is not well known to many people. Example: Building a mall in a rural environment, it will tend not to make money. Because village people tend to save money, and shop at traditional markets.
This is something that is required by any company that is positioned in any locality so that such place will always back the existence of such business establishment.
The human resource management of an organization doesn't generate revenue directly for the business. They are primarily concerned with recruiting and managing staff in an organization. They are well funded to do their roles but they don't generate direct profits.
That's right I agree with you. If the community supports the existence of the company in their place, it will be easier for the company to carry out operational activities without being disturbed by various threats from the surrounding community.
In my opinion, all areas within the company will generate profits, either directly or indirectly, because all parts of the company will be interconnected and continuous, forming a unity to generate profits. For example, if a company donates to a nursing home, in terms of costs, the company will lose money, but in the long run the company will get a better name and brand will be known by many people and of course will increase sales.
That's right I agree with you. If a company is active in charitable activities, it will increase the company's reputation in the eyes of the general public. So that it will make the general public interested in utilizing the company's services or buying their products. So that it will provide benefits even if indirectly.
That is so true. But you know when we want to reason business profits, we often reason in terms of direct profits. Because if you take the human resource department for instance, they make staff highly productive which adds to the profits of the business.
A lot of people believe that insurabde is a waste of time but it is not. It us vety good to insure your business especially when it is a very big business so that you will puck up when it crashes
Every area of a business generates profits if you want to logically look at it. Profits are not just about the moves that makes money to enter a business. There are moves that lead to the money moves.
That's right I agree with you. There will always be an advantage even if indirectly. I once tried to make a meal, and I gave it away to some of my neighbors. Then they wanted to buy it from me, so I had to make it again to fulfill their order.
It is like corporate social responsibility. People use to think it is a waste of money because they don't know the recognition that the simple act does to the business which wood turn to profits sooner or later.
