Revenue (vs) Profit Maximizers (Apple vs Samsung)

Revenue Maximization (vs.) Profit Maximization
Profile of Samsung and its financial matrix
 Established in 1938
 Founder : Byung chull lee, Lee kun-hee
 Present CEO : Oh – Hyun Kwon
 Headquarters: Seoul, South Korea
 Industry: Consumer electronics Telecom equipment Semiconductors Home appliances
 Has 285 overseas operations within 67 countries
 Revenues: US $ 1,43,069 Millions
 Profit: US $ 14,878 Millions
 Employs approximately 2,21,700 people
 Annual Report for FY 2010 - 2011 http://www.samsung.com/us/aboutsamsung/ir/financialinformation/annualreport/downloads/2011/SECAR2011_Eng_Final.pdf

Profile of Apple and its financial matrix
 Established: on April 1, 1976
 Founders: Steve Jobs, Steve Wozniak, and Ronald Wayne
 Present CEO : Tim Cook
 Headquarters : California, United States
 Industry: Computer hardware Computer software Consumer electronics Digital distribution
 Total Revenue: US $ 1,08,249 Million’s (FY 10-11)
 Profit: US $ 34,205 Million’s (FY 10-11)
 Employs:60,000
 No. of Locations: 500 retail stores
 Financial Report for FY 2010 – 2011 http://files.shareholder.com/downloads/AAPL/1983127830x0xS1193125-11-282113/320193/filing.pdf
REVENUE OR SALES MAXIMIZATION :-
 Revenue is essentially another word for SALE’S. or how much of the goods or services that your business produces is sold to consumers.
 Revenue does not take into consideration the costs necessary to produce or market your business’s product, so it does not reflect what the owners ultimately receive
 Revenue maximization strategy dictates that a business should do what ever is require to SELL as much as of its products, so it can build major market share and a reputation in the market.
 Easily helps in entering into new markets.
PROFIT MAXIMIZATION :-
 The profit maximization principle stresses on the fact that the motive of business firms to maximize profit is solely justified as being a method of