Business skills - Interpretation Essay Example | Topics and Well Written Essays - 500 words

Business skills - Interpretation - Essay Example The United States segment is the least contributor to the company’s profits as its best performance is operation at break even point (Mowen, Hansen, & Heitger 2015, p. 122). All of the segments, however, reported volatile trends that also declined over the period. The following chart shows average profit contribution of all the segments over the considered years. The UK contributed an average of 61 percent of the company’s profits over the years and can be projected to continue being the main source of profits in the short run while The United States operates under losses and is likely to continue in the trend. The UK is the significant revenue generating segment and this explains its profit significance. In addition, revenues from the UK has the same trend as that of total revenue and this means that it is core to the company’s income. The trend in revenue is also less volatile and increasing, and an indicator of sustainable growth. The difference shows that expenses that the group incurs in its activities are more volatile than are revenues because profit is a factor of expenses (Porter & Norton 2012, p. 70). The existence of the UK as the source of revenue and the trend that suggest profitability in the other segments also means that the company can expand its operations in the UK and in the other segments, as an optimization strategy. The United States, unlike other segments, however, is not promising to the group as the following chart shows for average revenues.