Secret Recipe Plan free essay sample

After the authorization of Secret Recipe as a title of our assignment by respected lecturer, we would able to start assignment on time. Our team of 8 members has been queried to assess the market for Secret Recipe in order to develop a marketing strategy with properly planning’s for the Secret Recipe. The main objective of we doing this report is to identify the Secret Recipe currently management and communication level in business in order to develop an successful marketing planning in future for our evaluation of assignment . We did this through completing a market analysis, determining the current strengths, weaknesses, opportunities, and threat that Secret Recipe facing currently. As we know, the Secret Recipe Cakes and Cafe have established their brand name in Malaysia, Singapore, Indonesia, Australia, Thailand, China, and Brunei. The purpose of this business plan is to analyze the strategic planning for Secret Recipe Cakes and Cafe. The strategic planning is able to help the Secret Recipe Cakes and Cafe to expand and build the brand name and increase the company sales and profit. Across Malaysia the cafe business has seen an explosion growth in these few years. In our market research, there are few competitors such as Old Town Cafe, QSR branch, Starbucks and Coffee Beans provide the food and beverage service. The explosion growth in cafe business provides the variety choice for customers to dine out. Therefore, company should be able to provide the food and service based on the domestic consumer behaviour. The Secret Recipe cafe has over 150 outlets throughout Malaysia and Asia. The distribution channel through the franchise is able the Secret Recipe product distribute equally and efficiently. In the analysis report, the current trend in Malaysia is the customers prefer dining outside from their home these days. Nowadays, the consumers are more concerned the quality of food and services. In addition, the customers have the purchasing power due to higher wages and good financial background but some portion of lower income level customer will have the constraint upon purchasing power. MISSION The mission of the Secret Recipe cafe is to redefine the lifestyle by setting the benchmark in specialty cake, fusion food and services. On the other hands, the Secret Recipe cafe also combats to produce the high and standard quality to increase the brand value. In enhance to increase the customer’s satisfaction and serve premium quality products. VISION The Secret Recipe cafe strives to success to increase the brand awareness and good brand impression. The cafe strives to control and self regulate on the food and service quality. The core values proposed by the Secret Recipe cafe Quality The principle of Secret Recipe Cafe is to maintain the food and beverage quality to maintain good relationship with customers. This is because the Secret Recipe Cafe produces their cake and food with quality ingredients to lead the high satisfaction for the customers. Dedication This is normal a company to maximize performance and productivity in business. The company should be setting the goals, focusing the result, and obligation on to earn the profits to maintain the growth of the company. Besides that, the company should not focus on the short term gain but long term profitability. Concept The Secret Recipe Cafe having the unique concept in the food menu and cakes. Besides that, the Secret Recipe cafe assists the domestic and international food and beverages. The Secret Recipe produces the food and beverage according to the culture and behaviour of the customers. Service The friendly, quality and unique service will distinguish apart from the other competitors. The service will help the company to maintain relationship with their customers. Result oriented The feedback and the complaints from the customers will influence the management and operation of the company. It is importance to gauge the growth of the company. Secret Recipe has successfully established in brand name in Malaysia, Singapore, Indonesia, Thailand, China, Philippines, Pakistan, Brunei and Australia by virtue of its fine quality cakes, fusion food and distinctive service. A leading and largest cafe chain in Malaysia, with Halal certification awarded by Jabatan Kemajuan Islam Malaysia (JKIM), Secret Recipe in committed to continue to adhere to the standards of preparations of all food and processing plant in the restaurant in accordance to the regulatory guideline including HACCP and VHM guidelines. Customers can always enjoy in confidence from more than 20 types of fusion food, 40 cakes creations and pastries, with a flavourful range of ice cream and beverages offered in all Secret Recipe outlets. In a short period of 13 years, Secret Recipe has experienced a rapid growth of over 150 cafes throughout the region. Secret Recipe continuously strives to surplus its own accomplishments and to be recognized as a leader in the industry. Goal The goal of Secret Recipe is to constantly provide the best and quality goods and excellent customer service. Besides that, they also hope to provide the highest satisfaction to all its valued customers. For example, they gather personal information in the registration form so that with this information, they can understand the customer’s needs and wants much better and provide a more enhanced and personalized shopping experience for them on their internet store in the future. Personal information is kept solely for internal marketing and billing purposes only. Focus Secret Recipe delivers a high-quality meal quickly, at a reasonable price, and is deeply focused on server- customer interaction. However, Secret Recipe was concerned that its traditional system of handwritten orders and cash registers was restricting the chain’s potential for growth. Culture Secret Recipe had very much focused on brand building early on. It created its own logo, corporate colour, marketing strategies, uniforms, menu layout, interior design and customer service standards. To be different, Secret Recipe identifies the features of a brand that can extend beyond. These features are what make a brand truly unique and distinctive compared with its competitors. Strength The products offered at Secret Recipe are high in standard and quality, which specially crafted and tailored by the Secret Recipe. The products are also closely monitored to maintain their quality at their production plant and the restaurant also offers wide selections of secret recipe of home-made cakes, baked desserts, beverages, fusion foods and many others. Weaknesses Even though the range of prices offered at Secret Recipe is affordable, but it is only focused to serve the middle income group and higher. Lower income group may not have the ability and chances to try their product and decrease the number of customer they could acquire. Macro-environmental Pest Analysis Political Malaysia is a federal parliamentary monarchy, the Prime Minister of Malaysia is the head of government, and there is multi-party system. The Party in Power The ruling party, which is also a coalition, is the  Barisan Nasional (National Front) consisting of  United Malays National Organization (UMNO)  and 13 other parties, most of which are ethnically based. Other parties include  Democratic Action Party (DAP), Parti Islam se Malaysia (PAS)  and  Parti Keadilan Rakyat (PKR). In total there are more than 30 registered political parties, all of which are represented in the federal parliament. Taxes The major proportion of government revenue comes from taxes, totalling 76 percent of revenue in 1999 (46 percent from  direct taxes  and 30 percent from  indirect taxes). In 1999, the  income tax  rate was 28 percent for both resident and non-resident companies; however, companies resident in Malaysia have tax exemption on income brought in from abroad. The Malaysian government has introduced a number of initiatives for manufacturing activities, tourism, the agricultural sector, transportation, and communication. Trade Policy Trade policy is to pursue trade liberalization through the rule-based multilateral trading system under the World Trade Organization (WTO). Free trade agreements (FTAs) have traditionally been confined to trade in goods. However, after the establishment of the WTO, trade in services has been included in many FTAs. FDI /FII structure Malaysia government has a generally favourable attitude toward foreign investment, especially regarding projects that facilitate technology transfers, create high skilled jobs and contribute capital to economy. New ventures in the manufacturing sector may be 100% foreign owned, the financial sector is being liberalized and capitol controls on overseas investments have been relaxed. Any FDI that seeks to acquire assets in Malaysia including ownership of businesses without giving clear benefit to Malaysians will be actively discouraged. All industrial projects must be approved by the Malaysian Industrial Development Agency (MIDA) which has lately stopped granting approvals in what it views as low productivity industries.

Marketing environment free essay sample

Analyze the marketing environment and the forces shaping eBay’s business over the years. What conclusions can you draw? The market eBay takes place in is primarily the Internet market. Around 1995 the Internet market was just beginning. â€Å"there will be more than 500 million users by 2003 and a rapid increase in e- commerce turnover, rising from US$500 billion worldwide in 2001 to more than US$3 trillion in 2004† (Fichter, 2003) EBay was a pioneer in Internet market until competitors such as Amazon and Wal-Mart began to sell products online as well. â€Å"Online marketing is now the fastest-growing form of marketing† (Armstrong, 2013). The difference between eBay and its competitors was that eBay allowed consumers to bid on items while the competitors allowed for consumers to buy products at barging prices and no shipping fee. The buying trend of the consumers was leaving the bidding arena and entering the traditional buy now at a bargain price type of consumerism. We will write a custom essay sample on Marketing environment or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page This is when eBay decided a change is necessary to continue to strive but they did not just want to strive they wanted to soar so they began to innovate and jump into the creation of mobile apps for their company. EBay did what was necessary to be a â€Å"big dog† competitor in their marketing niche, if they continue to be innovative and continue to succeed in being one step ahead of competitors, I have no doubt they will accomplish being the number one ecommerce company. 2. How was the change in the nature of eBay sellers affected the creation of value for buyers? EBay began its business as an auction company. Therefore they grew selling peoples possessions at low moderation volume. But as time pass and consume behavior changed and new competitors entered the market eBay noticed that their competitors were receiving their goods from whole sellers in bulk. â€Å"E-commerce causes structural change of the economy and affects lifestyles and consumption patterns† (Fichter, 2003) and they were also receiving what the consumer was buying. Therefore eBay starts to get sellers that also sell in bulk instead of at low volume. This created an environment where consumers were receiving what they desired and also at higher volume creating profits. â€Å" Donahoe- â€Å"We have to create a marketplace where we’re helping our sellers give our buyers what they want†Ã¢â‚¬  (Armstrong, 2013). Giving the customers what they desire created profit and growth for eBay. 3. Do you agree or disagree with CEO Donahoe that eBay’s turnaround strategy is the best way to go? Yes I agree with Donahoe’s decision on his turnaround strategy. Change can be difficult but adapting and innovation is the key to success. â€Å" The â€Å"power of mass procurement† can be utilized to ensure that only those systems that meet the defined criteria for sustainability are considered for purchase† (Fichter, 2003). Change is something all companies have to go through and the ones that make the transitions the most smooth are the ones that excel. † Given that expert projections suggest that mobile commerce will top $119 billion by 2015, being on top of this trend s a great place to be† (Armstrong, 2013). This is exactly what eBay did, they found a new leader and he lead them through new changes and it is paying off. Yes at first there was â€Å"growing pains† but their profits are increasing in areas do to their innovation and changes they had to make. † We have gone from turnaround to offensive† (Armstrong, 2013) 4. Based on eBay’s current developments with PayPal and mobile apps, what do you predict the outcome for the company will be in five years? PayPal and mobile apps are both booming now and are only going to get bigger. PayPal creates a secure network for wireless transactions between bank accounts and with ecommerce on a rise with no sign of decline, PayPal is a â€Å"Star† â€Å"Stars are high–growth, high-share businesses or products. Mobile apps in general are definitely sky rocketing as well, depending on the individual apps convenience and attributes determines if the actual app will be a hit or miss. â€Å"the number of users worldwide with mobile Internet access is projected to rise from 16 million in 2001 to almost 500 million in 2005† (Fichter, 2003). Based on how this case explained eBay’s new app it sounds like it will be a hit for those who shop online, due to its convenience and suave. With these two things helping push eBay upward I can only predict in five years positive things for eBay to come.  But the way business goes its always a gamble, there may be a product, company, or app more desirable than the one eBay produces and this is just the way business occurs. Marketing Environment free essay sample Before we start with marketing environment it is important to know what a market is and how can marketing be defined as. A market is any structure that allows buyers and sellers to exchange any type of goods, services and information. †¢The market facilitates trade and enables the distribution and allocation of resources in a society. †¢Markets allow any tradable item to be evaluated and priced. A market emerges more or less spontaneously or is constructed deliberately by human interaction in order. †¢Marketing can basically be looked upon as the interaction between marketing mix variables and environmental variables. †¢It is only with the help of marketing variables, that the market managers tackle the environmental variables. †¢Marketing is an ongoing process of planning and executing the marketing mix for products, services or ideas to create exchange between individuals and organizations. According to Kotler â€Å"Marketing is a social and managerial process by which individuals and groups obtains what they need and want through creating, offering and exchanging products of value with others†. We will write a custom essay sample on Marketing Environment or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page The American Marketing Association defines marketing as:- â€Å"The performance of business activities that direct the flow of goods and services from producers to consumers or users†. †¢Marketing tends to be seen as a creative industry, which includes advertising, distribution and selling. †¢ It is also concerned with anticipating the customers future needs and wants, which are often discovered through market research. †¢Essentially, marketing is the process of creating or directing an organization to be successful in selling a product or service that people not only desire, but are willing to buy. In the words of Stanton â€Å" Marketing is a total system of interacting business activities designed to plan ,price, promote and distribute want satisfying products and services to present and potential customers†. Therefore good marketing must be able to create a proposition or set of benefits for the end customer that delivers value through products or services. Government agencies, political parties, pressure groups and laws create tremendous pressure and constraints for marketing management. †¢Laws affect product design, pricing and promotion. Irrespective of the political ideologies, intervention in the marketing process has become common in every nation. †¢The legal environment is also referred to as public policy environment. The vast government network of laws and regulation, policy decisions, government bureaucracy and the legislative processes have varied impact on marketing strategies. †¢Multinationals like Coca Cola and IBM had to flee India during 1977 due to a hostile political environment. The positive political situation has permitted these corporations to again operate in the country. The impact of political and legal forces may be summarized as under: ? Substantial amount of legislation regulating business exists to protect consumers from unfair business practices, to avoid unfair competition, to safeguard small firms and to conserve foreign exchange. ?Marketing managers are required to get full knowledge and understanding of political and legal forces for achieving their goals. Political factors include government regulations and legal issues and define both the formal and informal rules under which the firm must operate. For example †¢Tax policy †¢Employment laws †¢Environmental regulations †¢Trade restrictions and tariffs †¢Political stability †¢Study and knowledge of economic forces is essential to preparing effective marketing plans. †¢Anticipation of future economic conditions will enable the firm to devise appropriate marketing strategies. Under economic environment, a marketing manager generally studies the following factors and trends: †¢Trends in cross national product and real income growth †¢Pattern of income distribution †¢Variations in geographical income distribution and trends †¢Expenditure patterns and trends Trends of consumer savings and how consumers like to hold their savings †¢Borrowing pattern, trends and governmental and legal restrictions †¢Major economic variables Economic factors affect the purchasing power of potential customers and the firms cost of capital. For example †¢Economic growth †¢Interest r ate †¢Exchange rates †¢Inflation rates †¢Economic conditions affect marketing directly because such organizations are themselves a part of the market place. For instance, the costs of all inputs positively respond to upward swing of economic condition. †¢This will affect the output price and consequentially affect the sales. Marketing Environment free essay sample The Marketing Environment Learning Objectives 1. Describe the environmental forces that affect the company’s ability to serve its customers. 2. Explain how changes in the demographic and economic environments affect marketing decisions. 3. Identify the major trends in the firm’s natural and technological environments. 4. Explain the key changes in the political and cultural environments. 5. Discuss how companies can react to the marketing environment. Chapter Overview In order to correctly identify opportunities and monitor threats, the company must begin with a thorough understanding of the marketing environment in which the firm operates. The marketing environment consists of all the factors and forces outside marketing that affect the marketing management’s ability to develop and maintain successful relation ¬ships with its target customers. Though these factors and forces may vary depending on the specific company and industrial group, they can generally be divided into broad microenvironmental and macroenvironmental components. For most companies, the microenvironmental components are: the company, suppliers, marketing channel firms (intermediaries), customer markets, competitors, and publics. We will write a custom essay sample on Marketing Environment or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page The macroenvironmental components are thought to be: demographic, economic, natural, technological, political, and cultural forces. The wise marketing manager knows that he or she cannot always affect environmental forces. Smart managers can take a proactive, rather than reactive, approach to the marketing environment. As a company’s marketing management collects and processes data on these environ-ments, it must be ever vigilant in its efforts to apply what it learns to developing opportunities and dealing with threats. Studies have shown that excellent companies not only have a keen sense of customer but an appreciation of the environmental forces swirling around them. By constantly looking at the dynamic changes that are occurring in the aforementioned environments, companies are better prepared to adapt to change, prepare long-range strategy, meet the needs of today’s and tomorrow’s customers, and compete with the intense competition present in the global marketplace. Chapter Outline 1. The Company’s Microenvironment The Company a. In designing marketing plans, marketing management takes other company groups into account. These interrelated groups form the internal environment. b. Marketing managers must work closely with other company departments. Suppliers c. Suppliers form an important link in the company’s overall customer value delivery system. d. Marketing managers must watch supply availability. They also monitor the price trends of their key inputs. e. Most marketers today treat their suppliers as partners in creating and delivering customer value. Marketing Intermediaries f. Marketing intermediaries help the company to promote, sell, and distribute its goods to final buyers. i. Resellers are distribution channel firms that help the company find customers or make sales to them. ii.

Finding Essay Topics That Is Not Xenophobic

Finding Essay Topics That Is Not XenophobicStudents who are preparing for the SAT or ACT often want to know how to find essay topics that are not xenophobic, since these are often quite sensitive subjects. The truth is that there are many ways that they can research this topic and present an answer that will give them a great deal of attention.Some students will choose to write about something that is not likely to get them attacked in any way. These students may be interested in discussing issues such as immigration. This is a topic that can create a lot of controversy, but most students will prefer to write about something that they believe is fair to all people.Writing about topics such as immigration, can sometimes make it difficult to find essays that are not xenophobic. The truth is that it is easy to make this type of topic xenophobic. If the writer were to imply that all immigrants should be deported, or that a person coming to the United States from another country is commit ting a crime, this could create a lot of problems.So how can students get to write essays that are not xenophobic? They can write about their own personal experiences. When students learn to use the word 'I' in their essays, they are able to effectively create essays that are not likely to be attacked by other students.The first step that students should take is to find free essay topics on the internet. Once they have chosen topics that will not create a lot of controversy, they will need to write about these topics in a way that will allow them to present their opinions in the manner that they wish.For instance, if students feel strongly about immigration issues, they can write about it as they believe it is true. If students are afraid of being deported, they can write about it as they feel they could be incarcerated if deported. Students should also be able to write about any other reasons that they might have for supporting a certain position.These types of essays are a lot mor e likely to be accepted by the author than essays that are xenophobic. The essays that are not xenophobic will also attract a much larger audience. Students will be able to present their ideas in a straightforward manner that is sure to get them attention.Some students will want to go so far as to read over the essays that other students have written and try to understand what they mean. When students can write their thoughts in a clear and concise manner, they will have the ability to improve their writing skills and become much better writers.

Multicultural Canada essays

Multicultural Canada essays Canada is both a multicultural and multiethnic country where people from diverse parts of the world have chosen to live. With them these immigrants carry their various backgrounds made of many cultures, ethnic origins, values and beliefs. Multiculturalism is a symbol of peaceful integration in and open-minded society. It is formally defined as an educational program recognizing past and present cultural diversity in a society in promoting the equality of all cultural traditions(Teevan and Hewitt, 1995). However with this multinational acceptance emerges the term minority group. Linked to this term are negative ideologies such as prejudice and discrimination. This paper will discuss both the positive and the negative aspects as well as the strengths and weaknesses of multiculturalism. This paper will ask questions such as the following: Are our children growing up to be well-rounded individuals who accept those around them or is one group of individuals being favored at the expense of another? Are immigrants treated as full-fledged Canadians or will they always be second in line? Also included in this analysis will be a short history of multiculturalism in Canada. The main focus of this paper will be to determine if multiculturalism in Canada encourages Canadian society to flourish or if the government has made an irreversible mistake in its acceptance of outsiders. In a pluralistic society, as is the Canadian, multiculturalism is given the opportunity to diverge into many paths- some more recognized than others. Along with this multinational acceptance emerges the term minority group. An ethnic minority is defined as a category of people, distinguished by physical or cultural traits, that is socially disadvantaged(Macionis, Benoit & Jansson, 1999 p. 209). According to this definition, humans of a darker skin tone are coined not only immigrants but also as members of visible...

Netflix Financial Coursework Example | Topics and Well Written Essays - 1000 words

Netflix Financial - Coursework Example The Company operates its business through three operating segments: Domestic streaming, International streaming and Domestic DVD† (Company Description, 2012). Break-even analysis is one of the simple methods to find out how much of the product in an organization must be sold to create a specific level of productivity. â€Å"At the breakeven point of a business, income is equal to expense, and therefore there is no gain or loss. It is the starting point from which an increase in sales or a reduction in costs generates a gain, and a reduction in sales or an increase in costs generates a loss† (Hagen, 2008). â€Å"At the breakeven point: revenue = fixed costs + variable costs† (Hagen, 2008). So, in order to compute the breakeven point, it is necessary to determine every fixed and variable cost that has been involved in the operation. Fixed costs are those costs that are invariable, and that should be paid in spite of the level of sales. At the same time, variable cos ts are incurred in percentage, to the level of sales. The analysis is carried out by a business to find out the number of units which require to be sold for a particular price, to enable the company cover the total cost connected with production. The study recognizes the break even point, which is in fact the point at which the company doesn’t create any loss or profit. 2008 2009 2010 2011 No. of units sold 194 167 596 684 Total revenue 1364.7 1670.3 2162.6 3204.6 Total variable cost 899.1 1269.5 732.2 1563 Contribution margin 465.6 400.8 1430.4 1641.6 Fixed cost 100 100 100 100 Break even unit 41.66666667 41.66666667 41.66666667 41.66666667    Sales 2008 1550.06 2009 1334.33 2010 4762.04 2011 5465.16    Profit 2008 83 2009 115.9 2010 160.9 2011 223.1 Contribution Margin per Unit = $2.4 Fixed cost of Netflix is assumed to be zero price per unit= $7.99 BEU= Fixed Cost/Contribution Margin Cost–Benefit Analysis (CBA) is also called Benefit–Cost Analysis (BCA). It is an organized process for comparing and computing advantages and costs of a project, judgment or government guidelines. â€Å"Cost Benefit Analysis Template provides a simple tool for calculating financial futures. With its familiar layout and excellent direction, this program makes financial forecasting simple enough for even novices† (Cost Benefit Analysis Template, 2009).    Total cost    2008 999.1 1364.7 2009 1369.5 1670.3 2010 832.2 2162.6 2011 1663 3204.6 1). How does the article suggest that business thinking and practice has evolved since the exhortations for business process reengineering in the 1990s? Part 2: (1) How the article does suggest that business thinking and practice has evolved since the exhortation for BPR in 1990? Davenport & Short (1990) describe the term business process as "a set of rationally connected tasks carried out to accomplish a defined business result." A process is "a structured, measured set of activities designed to produce a sp ecified output for a particular customer or market. It implies a strong emphasis on how work is done within an organization" (What is Business Process?, n.d.). In their view, there are two significant characteristics of processes, and they are: (i) They have clients (external or internal), (ii) They cross organizational borders, i.e., they occur across or among organizational subunits. One method for recognizing business processes in a company is the value chain method recommended by Porter and Millar (1985). The idea of BPR has

Performance Management Essay Example | Topics and Well Written Essays - 1250 words

Performance Management - Essay Example Performance management is a process that came into the scene during the period of 1980s and continues to impact the business environment (Armstrong, 1998, p.47). This research paper will focus on the topic of performance management while focusing specifically on the subjects of its definitions, purpose, benefits as well as methods used to conduct this process. Definition of Performance Management Researchers have provided the world of business with several definitions of performance management. For example: Samsonowa defines performance management as a process that is conducted on continuous basis in order to attain the objective of improving individual’s performance of tasks while involving activities including setting of goals, providing feedback along with reinforcing behavior as well as training of employees (Samsonowa, 2011,p.33). According to this definition the process of performance management is conducted with the sole aim of enhancing individual task performances by providing certain aims and targets to employees for achievement and ensuring that these targets are met by providing training and development to employees and if employees fail to attain those targets, they are provided with further training and development in order to decrease their performance gaps. The definition even pays emphasis to involvement of feedback, rewards as well as punishments in order to reinforce behavior. This means that with the assistance of performance management, employers first identify how well employees have performed and if they perform according to set targets and standards, they are provided with rewards to ensure that similar behavior occurs again in future and if they fail to attain targets they are punished in order to ensure that certain behaviors are not repeated. Purpose of Performance Management The process of performance management and creation of performance management systems is done on the basis of either one or of the two purposes or for both the purposes including administrative/decision making purposes and developmental purposes (Smither, 2009). When performance management is conducted for the purpose of decision making/administrative purposes the aim of the organization is to use the process to document the performance of individual employees and to make decision regarding the rewards and punishments to be offered to employees. The rewards and punishments that might be offered to employees on the basis of the process of performance management may include promotion or downgrade of an employee from one position to another increasing or decreasing compensation and benefits of the employees in order to either reinforce their performance or encourage them to perform better in future. On the other hand when the purpose of conducting performance management is developmental in nature, current performance of individuals is compared to either historical performance or set targets and if a difference between current and budgete d performance is figured out, employees are provided training and development in order to close the gap in performance levels. Both purposes have their own strengths and the purposes cannot be rated in order to figure out which purpose is more effective and efficient. Advantage of the Process of Performance Management One of the main benefits of performance m

What determines the distrbution of income between wages and profits Essay

What determines the distrbution of income between wages and profits - Essay Example Consequently, the wages paid to the workers in the cinema theatre would reduce. An opposite scenario in this context would be that if the public transport is privatized, the wages paid to the bus conductors would possibly increase. 2. The bargaining power of the workers is another significant factor that plays a role in the determination of distribution of income between wages and profits. The point to be noted here is that bargaining power of the work force can be more important than their productivity. 3. Profits not only depend on the macro factors such as the country’s economy but they also depend on the cost of production which can be company/industry specific. For instance, some companies who believe in excellence would spend a lot on innovation, resulting into low cost of production and high profits. This could also result into high wages. 4. The wages paid would also depend on the size of the company and industry. If the company is growing in size, the wages paid would be high; similarly wages are of growing nature in sunrise industries. Companies who have maintained oligopoly in the market can also afford to pay high wages. 5. Fields such as Information technology and Finance are of revolutionary and innovative nature, so we find wages to be very high in these fields. Similarly companies in any industry such as biotechnology, weapons manufacturing and aerospace that are of innovative nature can afford to pay high wages to the workers. 6. Another important factor is the distinction between skilled and unskilled workers. Skilled workers certainly get paid more than unskilled workers. The point to be noted here is that skilled workers enable the company to make more profits. 7. Referring to the above point again, we can also conclude that skilled/unskilled workers working in the specialty and niche areas will be paid more than