Global Business Strategies A) One Essay

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However, one needs to understand that the profits should be split evenly across other areas of operations as well, especially in research and development and other areas that stimulate company creativity.

Bibliography

1. Hoover, Jeremy. 2004. 3 Ways To Re-Invest In Your Business For Maximum Profits. On the Internet at http://www.mlmknowhow.com/articles/managing/reinvest.htm.

Student 3: One of the reasons to reinvest is because it will make you look professional (http://www.megabizflakes.com/top-3-reasons-re-invest-business) This is not as silly as it seems. The market and success on the market is quite often based on the way the clients and partners perceive you. If this is a company that reinvests most or all of its profits, then this is a company that is likely to have greater credibility on the market than a company that pays out more dividends.

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The former shows more commitment to long-term growth and to sustainable development, while the latter tends to look more like an economic entity out there to make a quick buck. Dividends are important, but the company should devote time to perceptions.

Some of the reinvestment will also produce higher skilled employees. This applies when the reinvested profits go towards training seminars, towards other motivational instruments, including higher pay and better working conditions. This will also increase and positively affect employee retention, as fewer employees are likely to search for a different job under these conditions. This will also create new ideas, to the company's benefit (Ven, 2010), maximizing the way this can be exploited on the open market in terms of innovation and creativity......

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