Effective Business Management and Organizational Profitability

Far too many business organizations have failed to achieve their growth targets in revenue and profitability. However, the probability of achieving profitable growth is heightened whenever an organization has a clear growth strategy and strong execution infrastructure. The purpose of this research assignment is to evaluate the strategies for guaranteeing effective business management for sustainable profitability. It emphasized the importance of planning, communication, team development, setting responsibilities, and controlling conflict. Some of the strategies identified are; corporate strategy, growth strategy and functional strategy. The research also identified factors that guarantee effective profitability, management Strategies for maximizing business profitability, the use of financial ratio to enhance effective management and the identification of the five competitive forces developed by Michael Porter to analyze the business environment.. Findings for this study indicate that it is important to analyze the level of competition within an industry and business strategy development and implementation, also financial advisers should be called upon often to assist management in reducing costs and finding alternatives to their unique situations.

TABLE OF CONTENT

Abstract

1.1 Introduction                       -           -           -           -           -           -              1

2.1 Conceptual framework of the study          -           -           -      -          3

2.1.1   Factors that Guarantee Effective Profitability Management  -           -           5

2.1.2   Strategies for Maximizing Business Profitability--        - 7

2.1.3   The use of financial ratio to enhance effective management  -           -           8

2.2     The Business Environment Vs Business Strategy      -           -        -           10

2.2.1   Porter five forces analysis       -           -           -         -     -         10

2.3     Types of Business Strategies for Sustainable Profitability     -           -        14

2.3.1   Corporate Level Strategy        -           -           -           -      -     14

2.3.2   Business Level Strategy          -           -           -              -           15

2.3.3   Functional Level Strategy       -           -           -     -           -           15

2.4     Theoretical framework of the study   -           -           -             -           16

2.5     Summary and Conclusion   -           -           -           -  -           -           17

References    -           -           -        -           -           -           -           18

Tables:                                                                                         

Table 2.1: Graphical representation of Porter’s five competitive model -     10