No Essay Example | Topics and Well Written Essays - 1000 words - 2

No - Essay Example sis shall in addition provide a discussion on the suggestions of what are to be done in order to improve the profit performance of the industry in the future. The following analyses are the probable reasons for the reduction of the industry’s profit according to the London’s time and tide (2011) newspaper explanation. According to the Excellence Clothing Company journal of 2014, there is a general decrease in base of revenue for the company. The revenue of the industry declined from  £255063 to  £215623 from the years 2013 to 2014. Since profit is a direct related function of revenue, that is profit = revenue – cost (cost of sales). Such a reduction in revenue consequently leads to loss realization or profit decline. There can be quite a number of factors that may lead to such a reduction in revenues. The policies of London have been proved to be ignorant on the clothing industries. The policies have not allowed for any incentive offer to be given to the industry. There are also varieties of stringent restrictive actions imposed by the London policies that have subjected the industry to many operation ceilings (Clutterbuck, & Crainer, 2012). This means that the company cannot operate beyond a certain set level of production even if it has the capacity of doing so. Most of the policies especially those by the London government have imposed huge amount of taxation on the industry in the year 2014. The industry is being taxed hugely in cases where the clothing raw materials to be used are imported. The custom duty to be paid in such cases of raw materials importation have been cutting deep in to the amount of cost expenses that are to be paid by the industry. The company is as well expected to be paying excise duties monthly and submitting their returns for excise duty charges. The above mentioned costs of taxation are of a negative impact to the industries revenues. Since such costs have to be paid by the industry through making withdrawals and deductions