Profit Strategy

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This strategy is adopted in large firms. Firms would be generating cash flow as primary concern for ensuring durable stability durable stability of the organization. Under the following circumstance, a profit strategy may arise:

 

  • If there is a decline of sales of the product in the market.
  • Expansion became impossible due to heavy cost.
  • Contribution of the unit to the total sales in less.
  • Exchange the market as and when possible.
  • To step out from the market where the product has lost its value.

 

A frequent method to tide over temporary difficulties and to keep afloat through a profit strategy is to sell off assets such a prime land in a commercial locality and move out to the suburbs. Others have hived off some division in non-core businesses to raise money, while few have resorted to provide services to other organization which need outsourcing facilities.

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