Identifying Profit Centers

Generally, regional offices represent the profit centers. Each region competes for capital within the company. As a result, the best regional performers with the best investment opportunities have more capital allocated to them. Each region has the responsibility of deploying capital prudently, but in a manner that provides for growth of the region. You also must keep the big picture in mind to stay on top of the business. Competition must always be considered , and profit centers should be identified relative to other companies in the same industry. For products for which there is always demand, the key lies in being the low cost producer compared to all peers regardless of where they operate .