As the CEO for a fortune 500 corporation in New York City, how would you decide which revenue streams to focus on for raising income?
There are certain criteria to decide the business stream to focus. Revenue/income can be raised by the following few ways-
1) Reduce the cost of saturated business.
The business which are saturated in terms of revenue, net income can be increased by reducing the cost by implementing technology or process improvement etc. This will in turn increase the bottom line/net income.
2) Finding the business which can be used to penetrate untapped market, untapped customer etc.
As a CEO you need to identify the business segment which can be increased may by untapped market or by targeting new customer class. This may need to have extra expenditure in R&D, marketing etc. but this can be most useful way to increase top line.
3) Eliminate loss making business segment.
If the loss making business segment can't be turn into profit making business it is wiser to eliminate such loss making business.
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