Archive for the ‘Business mission’ Category
The mission of a company in order to always get the best results
The mission should talk about what we offer to clients, regardless of what occurs, and that’s what they’re looking for the company. Basically, companies have two missions: the internal and external.
1. Internal Mission: determines the rate of return sought. It is worth mentioning that a company can generate strong value but not be profitable.
Is common confusion between profit and profitability.
Profit or profit = revenue – expenses
Profit margin = profit / price
Return = profit / assets
In turn, this formula can be decomposed into:
Profitability = (profit / sales) x (sales / assets)
Profit margin = profit / sales
Turnover = Sales / Assets
Then the formula for return becomes:
Return = profit margin x rotation
From this expression can discuss strategies to follow, trying to find the balance that maximizes the profitability equation, increasing the utility and / or sales volume.
It is important to think in terms of profitability, and that can be charged much, ie, achieving significant levels of sales and business will not be profitable.
2. External mission: important to define under what guidelines the company is released to the market to find the return sought.
The external mission should be stated from the perspective of how customers see the company, not what she thinks will sell. Therefore, from the definition of the mission, you begin to convey the philosophy, culture and way of making decisions inherent in the business. It should be wide enough not to limit the company and at the same time sufficiently defined as marking the course.
This is because people do not buy things, let alone what the company believes it sells, just buy the solution to a problem and this problem is different in everyone, even differs in the same person in different situations, although the solution with the same product, each person is buying another solver for personal and different.