Profit Maximisation Essay Example | Topics and Well Written Essays - 1500 words

Profit Maximisation - Essay Example The hotel industry (specifically Hotel Intercontinental) falls under tourism business. Profit maximization, in economics, is the process by which a firm determines the price and output level that returns the greatest profit. The total revenue -- total cost method relies on the fact that profit equals revenue minus cost. Management has to find ways to maximize profit without making the standard quality service offered to the general public suffer. We can give the hotel banquet department clients extra food (they call it side dishes or perks) or we could add some soft love music to the common waiting or guest area in the hotel. While the guests are whiling their time tinkering with their busy business portfolios and entertaining the clients' customers and friends in the hotel rooms or banquet or restaurant or even the bar area. Who knows, the swimming pool may be the most crowded area of the hotel. Profit maximization is the presumed goal of firms. In practice, business people often trade off making as much profit as possible against other goals, such as building business empires, being popular with staff and enjoying life. The growing popularity in recent years of paying bosses with shares in their firm may have reduced the costs that arise because. a) As a well respected hotel developer and operator, BDL operates a number of management contracts, where it delivers a range of services for its clients. The services range from standard hotel operations and management contracts based on a percentage of turnover and profit, to full or partial equity participation, development only agreements and/or pre-opening and launch contracts. COMMENT: BDL will maximize profit for its excellent services will increase the number of customers. The disadvantage of reducing costs to maximizing profit is that we may put a later date the expansion or promotional activities so that costs for the current period will not increase. Seminars and trainings for management level employees may be reset at a later date. Thus quality of employee performance may be affected. The morale of the workers will go down. This in turn will result in reduced quality of goods sold. The customers then will transfer to the competitors because of the poor quality of perform ance. b) Corus hotel placed an ad for housekeeping assistant at Maids Head Hotel, Norwich It offers a smart opportunity at Corus hotels with being responsible for helping to achieve the outstanding success of the housekeeping department. They are looking for a dedicated assistant whose super-efficient housekeeping can ensure their bedrooms, corridors and adjoining areas are kept spotless. Providing an enthusiastic service with above par interpersonal skills that adds to the satisfaction of our guests, applicant will prove a valued member of our team. Being honest and knows time management and able to turn out good ideas into realistic