In the technology industry, operation and financial aspect is definitely are major concern of the web corporations. In this industry, the actual business practice is widely influence by various forces in able survive its competition. Nevertheless, the technology is one of the most influential industries on its stakeholders.
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Operation in technology industry, on the other hand, was constantly influenced by the ever changing condition of the industry. Web Corporation's operating power can be enhance through continuous update and upgrade of its system. With the fact that technology industry is obsolescence in nature, web corporations must effectively update their operating system in able to stay influential and in power over their service and its competition, Operating leverage in this industry will be determine through the quality of the operating system to provide high standard service in its clients.
Financial leverage, however, depends on the performance of the web operating system, on which profitability will be determine through the performance of the entire web operation. Meaning, financial leverage links on the condition of the whole web operating system. If the web operation is influential, there is a huge possibility the financial status of the company is on higher profitability, on which as well the definition of Web Company's financial leverage.
In most cases, higher leverage is detrimental for the firm or company in relation to sales damages. In technology industry, improvement and innovation are amongst the primary higher forces, on which affects the web corporations on its operation and sales. On the case of Inktomi, the high leverage of competition and software innovation are the primary forces that affects them badly in their sales, on which resulted to sales decrease. These forces are detrimental due to the fact that in technology innovation and continuous software development is a must in able to maintain profitability. It affects them due to the fact that influential web operation is a sign of profitability, when in fact theirs are no longer influential, which affects them on sales. In addition to this, technology is one of the industries, which has been recording fluctuations in its business. In able for "Inktomi" to stay influential financially, they must take advantage of the higher leverage to improve their operating system and software, to prevent decreases in their revenue or sales.
In the end, operating leverage is the area where financial managers have more control. on which these company officials has the key to improve, develop and innovate the entire web operating system in able to achieve higher profitability. The best thing web financial managers can do is to spend their budget wisely for the improvement of their operating system or software, in able to establish web profitability and generate sales through reliable and influential operating system.
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