Mathematics plays a major role in business management because it helps maximize profit by using techniques such as analyzing production costs, determining ideal pricing, discerning sales patterns and projecting future sales. Having strong skills in mathematics means an individual can analyze all of a company's finances and make changes to save the company money and time, and ultimately make a higher profit.Know More
The study of mathematics is essentially just studying number patterns, and in business, this means knowing how to manipulate numbers and make meaning out of large data sets. All companies need some sort of mathematician to look at the company's expenses, sales and cash flow. If a company has good documentation of where their money is coming from and going to, using mathematics, an individual is able to see inefficiencies in the company's operations and make important changes.
For instance, assume that a company is selling a lot of a product that has a very low sale price. After someone buys the product, half of the money that the company just made is just covering the production costs of the product, and another quarter of the money goes to the labor and shipping costs for the product. This means that only one-fourth of the sales price goes to profit. A mathematician could look at all of the costs and use simple arithmetic to find out how much the product's sale price could be raised to make more money left for overhead, while still maintaining high enough sales numbers to ultimately increase profit.Learn more about Managing a Business
An example of the contingency approach is in business management when a manager deals with challenges as they arise by assigning tasks to employees with relevant skills. The contingency approach also applies to a manager's personality, such as coach-and-mentor, which affects his leadership style and ability to motivate employees.Full Answer >
Managers typically function as the top supervisors in a specific department of an organization and carry out a variety of duties. Management directs and delegates tasks to employees, plans and organizes the scope of work for the department they oversee, and monitors the progress of assignments and projects. Managers also work as intermediaries between their reporting staff and the company's executive-level leadership.Full Answer >
The formula for profit is total revenue minus total expenses, resulting in net profit, according to Accounting Tools. Company finance officials review net income often to determine the viability of the company.Full Answer >
While making a profit is a common goal for a business, a profit maximization goal is often viewed as unethical because of its impact on key stakeholders. Companies that seek to maximize profit may treat employees unfairly, harm the environment, mislead customers, and alienate suppliers.Full Answer >