Wealth Management Verses Profit Management

In: Business and Management

Submitted By abhimish
Words 504
Pages 3
Wealth Management verses Profit Management :

To begin with , Profit management is all about maximizing profit and wealth management is all about increasing the worth of the equity or value of the company .

Profit Management :
Profit management is maximizing profit . It comes as a part of Profit and Loss Account . The main things to be considered in profit managemnet , is generating maximum revenue with the minimum cost invonved . WIthin profit management , the focus is mainly on operations management . The product to be manufactured / sold etc are already determined . The essence is to use the best techniques within the sector to reduce the production cost . So for similar product if another company takes X amount to make Y units , the goal would be try and make Y units with much less amount than X . So better skilled work force , best available technology usage are some ways to improve on the cost of making . Revenue generation has the sell part to it too.
So if we are able to maximize sales , we are adding to profit - provided we are not selling at a loss - like e commerce sites are doing . So concepts like right advertising , CRM , using the parent brand name in innovative ways , come into play . To sum it up , profit management is about maximizing revenue , with as less production cost possible .

Wealth Management :
Wealth management is all about the brand equity value of the compnay and for a equity holder return on investment. What would be term as wealth . People who have invested in the company or owners , are essentially representing equity .
Now the net worth of company is the equity put in + retained earnings/ or at a given point of time difference between assets and liabilities . From the net worth of company , we get the book value at the current time for the comapny . The rate or PE value times the book value is trading in…...

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