Essay: Weaknesses of Fairfax Company

Essay: Weaknesses of Fairfax Company
07/06/2011 Comments Off on Essay: Weaknesses of Fairfax Company Academic Papers on Business Studies,Sample Academic Papers admin

Sample Essay

  • The size of the organisation makes it quite difficult to manage the overall operations and implement policy decisions throughout each department and segment of business individually with a major problem of management and supervision where some departments may be overstaffed and some understaffed.

  • The revenue for larger organisations is quite high but this also means that the cost of doing business is also high. The higher cost would mean a lower average net profit per product or unit.
  • As the company has an established image in the market it would be quite difficult for various small companies to advertise with Fairfax due to high cost of advertisements and the company loses great deal of revenue in this regard.
  • One important aspect to consider is the loss of one segment or division of a company which is quite substantial for the company image but produces huge losses for the company.

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