Week 1 DQ 2 Answer - out as one small grocery facility in...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
What makes some companies more profitable than others? What are the similarities and differences between profit and profitability? Provide real-world examples to support your answer. I think that what makes some companies more profitable than others is the way in which the business model has been put in place. Both profit and profitability refers to the company increase in capital in which outweighs their liability. Profit is the actual growth of the company and the proceeds that will be gained through product sales. Profitability implies how well a company performance is and its ability to continue generating profitable revenue. Profitability also shows a company is likely to do well in the future as well as the present. For example, Whole Foods Market is a great model of a company’s profitability. They started
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: out as one small grocery facility in 1980 and now 30 years later they have developed over 300 stores across the nation and continue to be highly successful. In 1980 the original founders saw that their natural food market was ready to go main-stream. So, they opened many stores from the ground up and then started to acquire other natural foods chains across the nation. With every endeavor they kept to the original mission of providing good, wholesome food and excellent customer and community service. The competing grocery stores such as, Albertson’s and Safeway, have felt the pressure and have added an entire natural food and product sections, organic selections, and specialized aisles into their own business models to keep customers from turning away and making their grocery purchases elsewhere....
View Full Document

This note was uploaded on 03/12/2012 for the course BUS 210 210 taught by Professor N/a during the Spring '09 term at University of Phoenix.

Ask a homework question - tutors are online