Optimal Profitability in Organizations - Research Paper Example

English Insert due Optimal profitability in organizations entails income, which is usually distributed to the owner especially in profitable market production process. In simple terms, profit entails a profitability measure, which a business owner’s main interest is formation of income. Optimum profitability in most companies is usually attained through various aspects including revenue and yield optimization. In some cases, operational hiccups also help in determining optimal profitability. Employee performance also plays a significant role in determining optimal profitability in most organizations. In fact, employee performance remains tied directly to how an organization performs in the market. The purpose of the report was to understand the causes making Google Company not realize its optimal profits. A research was conducted, and the primary methods of collecting data were used. Few assumptions were made to make the research possible such as the companies under investigation had already realized their optimal profits. From the findings, a comprehensive report was made whereby conclusions and recommendations were derived. This research paper therefore discusses optimal profitability issue as it relates to the Google Company. It also addresses the company’s efficiency, productivity, and performance. Keywords: Incentive, Assumptions, Theoretical sampling, yield optimization, revenue optimization, operating hiccups, questionnaire organization Introduction Purpose The following report is based on the research conducted by the Google Company in search of methods that would lead the company to optimizing its profits. Profit optimization remains an important aspect in most organizations. Therefore, the report seeks to establish causes, which make the company, fail to realize its optimal profits Assumption The only assumption that was made during the research was that all the included companies were already optimizing their profits apart from the Google Company. In fact, this was the reason why Google Company collected data from these companies. Collecting data from other companies with optimal profits allows Google Company to establish its own optimal profits platform during its business operations. Scope The entire report covered practices that could lead the company to realize its optimal profits as well as the practices deemed to deny the company its optimal results. The study did not cover Google Company rivals and competing companies’ aftermaths of realizing their optimal results since the research was only focused on the Google as the main company. Methodology In doing this research, theoretical sampling tends to remain the hallmark of grounded theoretical methodology. However, qualitative methodology remains the ultimate methodology in understanding factors making the company fail to realize its optimal profits. Qualitative research methodology Qualitative methodology in this case means that the company researchers would use theoretical sampling methodologies (Newman & Benz, 2006). Qualitative approach in this case entails developing a hypothesis that mostly operates on progressive basis. This methodology would help the Google Company in developing a theory regarding the optimal profits issue. On the other hand, the methodology will also remain significant especially in allowing the Google Company gather information, analyzing and attainment of results (Newman & Benz, 2006). In this case, the result would help in improving the entire hypotheses. Using a qualitative approach will also allow the Google Company to achieve the right results. This methodology remains suitable in choosing company research participants, adding data sources during the research and modification of the interview guides. Generally, the qualitative methodology in this research will include various aspects including questionnaires, interviews, documents, general observation and texts. On the other hand, a retrospective observational methodology also remains a perfect methodology in conducting the research study (Newman & Benz, 2006). However, effective research methodology in this research type is by conducting interviews and using questionnaires in attaining feedbacks from the participants. In conducting the interviews and filling of the questionnaires, the company researchers will ask the participants various pre-formulated questions. In this case, the researchers will only focus on the organizational employees (Newman & Benz, 2006). To ensure that the research team collects effective information, the team will use structured questionnaires. On the other hand, open-ended questions will remain significant during the interviews. Here, both Google Company management and employees will fill participate on the interviews and will fill the questionnaires. Most questions during the interview will focus on both profitability issues and customer retention aspect. In this case, information collection would depend on company hierarchy levels (Newman & Benz, 2006). Focusing on hierarchy levels remains important especially in understanding the Google Company environmental dynamics. Additionally, it remains significant in establishing the final recommendations regarding the company’s optimal profit issue and aspects of improving optimal profitability (Patton, 2002). However, the company researchers will consider ethical issues regarding the process. Attainment of sensitive company information will be considered. An alternative strategy in which the researchers may use during the research is retrospective observational methodology. In this case, the company researchers will conduct their research by simply observing strategies in which the organization has in place to obtain optimal profits. From the observations, the company will record results and make recommendations based on organizational strategies and employee behaviors (Newman & Benz, 2006). Another common strategy in which the company may use is by surveying. Almost similar to observational methodology, surveying entails an approach in which the company researchers collect information within the company by simply asking both employees and company management regarding their role towards the company’s performance (Patton, 2002). Most questions asked in this case would focus on company profitability and ways of attaining optimal profitability in the organization. The research findings will be qualitative in nature. This will therefore include: The company’s environment Employee’s discipline within the company Company techniques and strategies for improving organizational profits Theoretical sampling Theoretical sampling in this case entails collection of data during theory generation. In most cases, the analyst tends to collect before analyzing the data. Theoretical sampling therefore remains important especially during the initial data collection phase (Newman & Benz, 2006). In reference to the Google Company research, the theoretical sampling guide that the Google Company research team will establish remains significant especially in facilitating systematic decision-making regarding the company and its optimal results. On the other hand, theoretical sampling remains significant especially in enhancing the audit trail. Questionnaire organization In doing the research, the research team will organize the questionnaire in that it can help in collecting homogenous information regarding the company, its employee and factors influencing productivity. The questionnaire will however focus on profitability within the organization. Additionally, the research questionnaire will also have various close-ended questions (Patton, 2002). The questions will in this case ensure the Google Company employees are able to respond without subjectivity. In filling the questionnaires, the researchers will provide a rating parameter. The parameter will allow the employees and the participant’s in expressing and connecting to a specific parameter (Patton, 2002). In doing this, it would help in creating objectivity. This will then encourage the participants against their own perceptions. Questionnaire a. How is the company performing against its rivals? b. What is the company doing to maximize its profitability potential and attain high organizational performance? c. How does the Google Company perceive its employees and its markets? d. Is optimum profitability important to you as an employee of the company? e. What is the Google Company doing to retain its position in the market? f. As an employee in Google, do you enjoy working in this company? g. What is Google Company doing to ensure that most of its employees do not move to rival companies? h. What are some suggestions to improving optimal profitability in the company? i. What Factors affect organization profitability? Results The number of people who were issued with the questionnaires was 45 and 40 of them gave their feedback, a number equal to 88.888% of turn out.  Company A % of acceptability Company B % of acceptability Company C% of acceptability Revenue optimization 90 85 80 Yield optimization 80 80 75 Hiccups 85 88 95 Yield optimization - Compared to other companies, Google Company is not keen on using this method and, therefore, this is one of the causes of the company’s low profits. The low profits indicate that Google Company needs to implement this methodology for better profit-oriented performance in future (Porter & Van der Linde, 2005). Revenue optimization- In this section, Google Company has managed to improve its relationships with its customers basing on its segmentations. Thus, the company management has dealt with the varying segmentations as required (Porter & Van der Linde, 2005). In addition, in the offensive manner, the company has increased its sales by creating new relations as well as strengthening its earlier relations. Operating hiccups- Laying off of some employees has caused the company a lot since some of these employees are better versed in the company’s operations than new staff. Porter and Van der Linde (2005) wrote that laying off employees is not necessarily the best option for a low-performing company. Notably, the company has had cases of stocks price going down unexpectedly, a situation that have made it impossible for the company to realize its optimal profits.  Discussion From the research, it is evident that other companies were performing better that the Google Company in terms of both revenue and yield optimization. In terms of hiccups, the company is doing well especially in managing its internal and external affairs (Quinn, 2012). The results were in line with a study that was conducted by Watson (2013) that indicated the importance of co-operation between the junior and senior management teams. Additionally, according Schoeffler et al, (2014), the company leadership should also ensure that there is a favorable working environment for its employees. As such, the company should always look out for its internal and external factors that could be affecting its performance (Quinn, 2012). The results imply that the company should adjust some of its operations to reach its goals.  As the result indicates, Google Company tends to perform poorly in terms of its yield optimization. The result indicates that other companies apart from the Google Company are performing better in terms of their yield optimization levels. Increasing the company’s yield optimization can be done through implementation of specific methodologies. The methodology in this case entails techniques, which are mostly used by ad servers in improving the company performances of specified advertiser creative (Porter & Van der Linde, 2005). In this methodology, the ad server will try to establish the publisher impressions that work effectively depending on the campaign parameters. On a positive note, the Google Company keeps improving in its relationships with its stakeholders. In terms of revenue optimization, the company management is effective while dealing with its varying segmentations. Increase in revenue optimization remains important for the company especially in amassing organizational profits (Porter & Van der Linde, 2005). Creating and strengthening relations with both stakeholders and shareholders helps the company in building rapport and increasing stocks. On paper, revenue optimization is a positive approach by the company. Apart from organizational management, organizational employees also play a significant role in terms of company profitability. In fact, internal factors mostly depend with company employees. To achieve maximum profitability, the organization needs to ensure that both its employees and management are up to task. Organizational employee’s satisfaction contributes to profitability. In this case, the Google Company needs to address issues affecting its employees for more profitability and eventually attain its optimal profitability levels (Porter & Van der Linde, 2005). Therefore, exploiting the employee may discourage profitability due to low productivity levels within the organization. From the results, it remains evident that the company has hiccups through its operations. This aspect results from employee layoffs, which causes Google to lose its experienced employees (Porter & Van der Linde, 2005). The fact that Google Company usually lays off its employees, it means that it replaces them with new inexperienced staff. As Porter and Van der Linde (2005) indicate, laying off employees may sometimes affect the company in terms of profitability levels. In fact, laying off employee does not mean low performance levels by the company. Conclusion From the research study, it is evident that Google Company requires to make various adjustments in order to compete effectively with its rivals. As indicated in the study, the company needs to improve in areas including its yields and operating hiccups. The fact that Google Company tends to perform poorly in terms of its yield optimization, it means that the company is unable to utilize the techniques by its ad servers in improving the performance of its specific adviser creative (Schoeffler, Buzzell & Heany, 2014). It is also evident that other rival companies are better placed especially in their levels of yield optimization. Therefore, the company needs to make adjustments such as improving the employees working environment. In this case, employees working environment helps in controlling the trend and the stocks that it will take (Schoeffler, Buzzell & Heany, 2014). On the other hand, it helps in improving the company’s yield optimization and enhancing co-operation among both the seniors and junior employees. Another area in which Google Company performs poorly is in its operating hiccups. From the study, it is evident that Google Company is fond of laying off most of its employees hence causing losses to the company. In fact, most laid off employees are experienced in terms of company operations. As previously indicated, laying off employees is not necessarily the best option for a low-performing company. Notably, the company has had cases of stocks price going down unexpectedly, a situation that have made it impossible for the company to realize its optimal profits. Instead of laying off employees, the company can instead encourage its employees. In doing this, the company would be building its employee confidence within the company’s employee ecosystem (Schoeffler, Buzzell & Heany, 2014). The Google Company can ensure that this aspect remains possible by remaining proactive towards its employee. In order to attain profitability within the organization, the Google Company also needs to strengthen its customer’s demands. In as much as Google is performing exceptionally in terms of its revenue optimization, improving it remains important. The relations in this case must always base on its segmentations. The company also needs to create and strengthen its new relations. The Google Company also requires optimizations of its business operations. Additionally, the company needs to maximize its uptime. In doing this, the company must also try to minimize its maintenance. Minimizing capital expense also remains important especially in achieving profitability. From the study, it is evident that efficiency driver remains an actual formula which most companies use. In this case, Google can use an integrated product lifecycle tools in managing the organization (Schoeffler, Buzzell & Heany, 2014). This system helps in creating formulations for the company especially in profitability. Other factors in which Google can do to improve its profitability is by ensuring that it retains its customers. Rewarding organizational employees by offering incentives also helps in retaining them. In doing this, it helps retain customers, employee and create a favorable working environment. Recommendations From the findings and conclusions, it is recommended that: The company should integrate yield optimization in all its departments The employer should encourage cooperation between senior and junior employees The company should try and keep its top performing employees and know the cause of their recurrent resignations.  The company must also try to minimize its maintenance. Minimizing capital expense also remains important especially in achieving profitability. Instead of laying off employees, the company can instead encourage its employees. In doing this, the company would be building its employee confidence within the company’s employee ecosystem. Increasing the company’s yield optimization can be done through implementation of specific methodologies. The methodology in this case entails techniques, which are mostly used by ad servers in improving the company performances of specified advertiser creative. The Google Company also needs to strengthen its customer’s demands. The company also needs to create and strengthen its new relations. The company can ensure that it remains proactive towards its employees Creating and strengthening relations with both stakeholders and shareholders helps the company in building rapport and increasing stocks. References Gilson, R. J., & Mnookin, R. H. (2005). Sharing among the human capitalists: An economic inquiry into the corporate law firm and how partners split profits. Stanford law review, 313-392.  Newman, I., & Benz, C. R. (2006). Qualitative-quantitative research methodology: Exploring the interactive continuum. Carbondale, Ill. [u.a.: Southern Illinois Univ. Press. Patton, M. Q. (2002). Qualitative Evaluation and Research Methods. Sage, 2002. Porter, M. E., & Van der Linde, C. (2005). Toward a new conception of the environment- competitiveness relationship. The journal of economic perspectives, 97-118.  Quinn, J. B. (2012). The intelligent enterprise a new paradigm. The Executive, 6(4), 48-63.  Schoeffler, S., Buzzell, R. D., & Heany, D. F. (2014). Impact of strategic planning on profit performance (pp. 137-145). Graduate School of Business Administration, Harvard University.  Watson, G. H. (2013). Strategic benchmarking: How to rate your company"s performance against the world"s best. Wiley. Read More