SMRT invests in Shenzhen Zona Transportation Group

Scania SG

Not all.

I haven't got my stuff wrong despite a pause now before I take up economics again.

Companies may wish to maximise revenue instead to increase sales or edge out competitors.

Then you are contradicting yourself, the act of maximising revenue, ceteris paribus, is an act to maximise profits.

16/f/lonely SG

Then you are contradicting yourself, the act of maximising revenue, ceteris paribus, is an act to maximise profits.

If its at the expense of going beyond the point of efficiency then how can I be contradicting myself?

I know I am damn rusty, I have forgotten what's those efficiency curves called, but circumstances do come about when firms abandon conventional ways of doing things and pursue different goals.

Maximising revenue is not maximising profit!

16/f/lonely SG

The goal of maximising revenue if I may add, is a pretty common goal as a short term measure, because it indicates consumer votes on the firms' products.

Having a high revenue thus also indicates a high market share and raises your ratings.

As a short-term goal, it is usually also associated with the long-term goal of expansion, with the expense of profit in the short-term.

Scania SG

Not all.

I haven't got my stuff wrong despite a pause now before I take up economics again.

Edit: Maybe I wasn't clear enough, profit is a major aim. But maximising profits are not always on their mind. There are times when different goals are set as the environment changes.

Eg: If your firm's rating starts dropping, are you going to carry on with profits as your main aim? And if long-run is defined as the time after deprecated capital is replaced, it may not even be enough time for the company to look at profits again. Thus it also holds true that profit-maximising is not always the main aim, short or long-run.

In case you haven't found out from the equation, there is a positive corelation between profits and revenue, and profit maximisation can be done by increasing revenue or decreasing costs. In this case the argument was flawed from the start as people argued about SMRT's aims to maximise profits through maximising revenue (which everyone is doing), and nobody bothered to address SMRT maximising profits through minimising costs which people (including you) tried to argue but got everything mixed up. There are some business decisions which a company should make as minimsing costs may not lead to an increase in revenue if it damages your image (like what you've argued) etc.

Please don't mix maximising revenue with minimising costs as they are two different things which lead to profit maximisiation.

16/f/lonely SG

In case you haven't found out from the equation, there is a positive corelation between profits and revenue, and profit maximising can be done by increasing revenue or decreasing costs. In this case the argument was flawed from the start as people argued about SMRT's aims to maximise profits through maximising revenue (which everyone is doing), and nobody bothered to address SMRT maximising profits through minimising costs which people (including you) tried to argue but got everything mixed up. There are some business decisions which a company should make as minimsing costs may not lead to an increase in revenue if it damages your image (like what you've argued) etc.

Laughing

I never considered SMRT's case because I have no freakin idea what the heck they're doing with our $$!

Simple_boi SG

Having econs lecture down here?

TIB537B SG

i guess so. SMRT invested in Shenzhen to make more profits and reduce losses.

Ajen SG

please stick to the topic thanks..

for SBQ or etc..

go to Homework forum..

thanks..

BusSpeeder SG

please stick to the topic thanks..

for SBQ or etc..

go to Homework forum..

thanks..

i believe what they are saying now should still not be off-topic yet because since this topic is talking about smrt investing in another company so there's nothing wrong in discussing about smrt's investments and other related such as cutting cost, profit-making, etc. . i agree, though, that the SBQ discussions shouldn't be here.

SBS9888Y SG

i look forward to seeing more burnt buses.

like the amount of habits u see burnt so far.

BusSpeeder SG

i guess so. SMRT invested in Shenzhen to make more profits and reduce losses.

SMRT should be able to invest in other regions as well though. this foreign investment may not necessary reduce losses, but profits will definitely be more.

TIB1171R SG

Seriously people, just what has the less than stunning Singapore operations in Singapore has got to do with the company's ambitions in being an international player?

By right, this kind of one-sided comments (what more, those that totally have no relation to the topic in question) should no longer surface. What I am seeing now is hatred towards SMRT blurring you guys' thinking that whatever SMRT does is crap. SMRT buys new buses. Crap - why only 67? SMRT improves train services. Crap - why cannot implement earlier/why not invest in buses instead?

If the company sees no substantial need to increase its investment in one particular market or sector if it cannot increase its profits, then so be it. Why get so angsty? In fact, a lot of you who voiced out here all take a lot of SBST anyway. I've been surviving in Woodlands well enough. If I am not making noise, why should you? You have many many better choices anyway.

In fact, I see this investment in Shenzhen as a good opportunity for SMRT to really gain experience which it can bring over to improve its local services. For one, some services by Zona are based on contracts by the local authority. This would be a good platform for SMRT to pick up good points and apply for the gradual opening up of the transport industry here come 2010.

Oceane SG

Seriously people, just what has the less than stunning Singapore operations in Singapore has got to do with the company's ambitions in being an international player?

I do see many anti-SMRT replies... Yes they mostly contain some degree of biasness here, can't blame them though, they haven't been exploring outside of their comfort zone enough...

Volvo Olympian SG

Seriously people, just what has the less than stunning Singapore operations in Singapore has got to do with the company's ambitions in being an international player?

Agree , we have too many anti-SMRT here , I still don't get it , whats wrong with SMRT , Just because SBST did better than SMRT , why kick SMRT to one side? Seriously i wonder

TIB1171R SG

I do see many anti-SMRT replies... Yes they mostly contain some degree of biasness here, can't blame them though, they haven't been exploring outside of their comfort zone enough...

I do not mind if "they" havent been exploring. But that means they dont have enough experience or knowledge to comment effectively, hence the one-sidedness.

So "they" better just shut up.

QX179R SG

SMRT Invests In Leading Transport Company in Shenzhen, China

http://www.smrt.com.sg/Upload/20081029531235916.pdf

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