Details about the Business size, Government, Employee, Supplier, Banks, Investors, Customers, competitors and Community, Methods ,Methods of measuring business size, small businesses , large businesses, and family businesses.
This document discusses various profitability ratios that can help measure and assess a business's performance. It defines profit, gross profit margin, operating profit margin, and net profit margin. Gross profit margin measures profit as a percentage of revenue. Operating profit margin measures operating profit as a percentage of sales. Net profit margin indicates how effectively a business turns sales into profit. Return on capital employed (ROCE) measures operating profit as a percentage of capital invested in the business. Ratio analysis allows comparison of ratios over time and between competitors to evaluate relative performance.
This revision presentation considers the variety of stakeholders impacted by business activity. How will a change in objectives, such as a move from profit maximisation to revenue maximisation have an effect on different stakeholders?
This chapter introduces concepts of probability including classical, empirical and subjective definitions. It defines key terms like experiment, outcome, event, and discusses rules of probability like addition, multiplication and complement. Examples are provided to illustrate calculating probabilities of single and joint events, as well as conditional probabilities using formulas and tree diagrams. Bayes' theorem is also introduced as a method to revise probabilities with additional information.
The document discusses the accounting equation and how it is affected by business transactions.
The accounting equation states that total assets are equal to total liabilities plus owner's equity. It must always balance as transactions occur. Several examples are provided of how common business transactions like purchases, sales, expenses, and cash payments impact the accounting equation by increasing or decreasing different accounts. The procedure for preparing accounting equations based on transaction details is also outlined.
Wholesalers purchase goods in bulk from manufacturers and sell in smaller quantities to retailers. They bridge the gap between producers and retailers. Key functions include buying and storing goods, distributing to retailers, providing financial assistance to retailers, and gathering market information. Performance is evaluated based on metrics like achieving sales targets, secondary sales, stock levels, handling promotions, and timely reporting. Developing rural markets involves expanding outlet coverage, acquiring new accounts, tracking secondary sales, monitoring competition, and managing damaged goods.
1. Marketing ethics addresses principles and standards that define acceptable conduct in the marketplace.
2. Laws and regulations are designed to protect consumers from unethical business practices and recognize basic consumer rights.
3. Marketers must rely on their own value systems to determine what is ethical beyond what is legal.
This document discusses measuring and increasing profit. It defines key profit-related terms like profit, profitability, return on capital, net profit margin, and cash flow. It explains how to calculate profit and discusses ways to measure profit in absolute and relative terms. The document also provides various methods for businesses to improve profit, such as increasing sales volume or price, reducing variable or fixed costs, and increasing output. It notes the differences between profit and cash flow in terms of timing and accounting for fixed assets.
It is the system in which both the aspects i.e. debit as well as credit are recorded in the books of accounts .It records transactions relating to all the accounts i.e. personal, real and nominal.
This document discusses various profitability ratios that can help measure and assess a business's performance. It defines profit, gross profit margin, operating profit margin, and net profit margin. Gross profit margin measures profit as a percentage of revenue. Operating profit margin measures operating profit as a percentage of sales. Net profit margin indicates how effectively a business turns sales into profit. Return on capital employed (ROCE) measures operating profit as a percentage of capital invested in the business. Ratio analysis allows comparison of ratios over time and between competitors to evaluate relative performance.
This revision presentation considers the variety of stakeholders impacted by business activity. How will a change in objectives, such as a move from profit maximisation to revenue maximisation have an effect on different stakeholders?
This chapter introduces concepts of probability including classical, empirical and subjective definitions. It defines key terms like experiment, outcome, event, and discusses rules of probability like addition, multiplication and complement. Examples are provided to illustrate calculating probabilities of single and joint events, as well as conditional probabilities using formulas and tree diagrams. Bayes' theorem is also introduced as a method to revise probabilities with additional information.
The document discusses the accounting equation and how it is affected by business transactions.
The accounting equation states that total assets are equal to total liabilities plus owner's equity. It must always balance as transactions occur. Several examples are provided of how common business transactions like purchases, sales, expenses, and cash payments impact the accounting equation by increasing or decreasing different accounts. The procedure for preparing accounting equations based on transaction details is also outlined.
Wholesalers purchase goods in bulk from manufacturers and sell in smaller quantities to retailers. They bridge the gap between producers and retailers. Key functions include buying and storing goods, distributing to retailers, providing financial assistance to retailers, and gathering market information. Performance is evaluated based on metrics like achieving sales targets, secondary sales, stock levels, handling promotions, and timely reporting. Developing rural markets involves expanding outlet coverage, acquiring new accounts, tracking secondary sales, monitoring competition, and managing damaged goods.
1. Marketing ethics addresses principles and standards that define acceptable conduct in the marketplace.
2. Laws and regulations are designed to protect consumers from unethical business practices and recognize basic consumer rights.
3. Marketers must rely on their own value systems to determine what is ethical beyond what is legal.
This document discusses measuring and increasing profit. It defines key profit-related terms like profit, profitability, return on capital, net profit margin, and cash flow. It explains how to calculate profit and discusses ways to measure profit in absolute and relative terms. The document also provides various methods for businesses to improve profit, such as increasing sales volume or price, reducing variable or fixed costs, and increasing output. It notes the differences between profit and cash flow in terms of timing and accounting for fixed assets.
It is the system in which both the aspects i.e. debit as well as credit are recorded in the books of accounts .It records transactions relating to all the accounts i.e. personal, real and nominal.
ACCOUNTING CONCEPTS:-
1. SEPARATE ENTITY CONCEPT – According to this concept, business is considered as a separate legal entity which has its distinct identity separate from its owner. This concept is extremely useful in keeping business affairs strictly free from private affairs of owner. This is the reason why withdrawal by owner from business is treated as drawing.
2. GOING CONCERN CONCEPT – According to this concept, it is assumed that business is established and will continue for a fairly long time in future. This is the reason why while valuing assets of firm current resale value is not taken into account instead depreciation is charge on basis of their expected life.
3. MONEY MEASUREMENT CONCEPT – According to this concept, accounting should necessarily record only those transactions which can be expressed in monetary terms. This is the reason why qualitative facts like change in management are not recorded in books of account.
4. COST CONCEPT – This concept is closely related to going concern concept and emphasizes that asset should be recorded at its cost price and not market price which keeps on changing.
5. DUAL ASPECT CONCEPT – The dual aspect concept states that every business transaction requires recordation in two different accounts. The concept is derived from the accounting equation, which states that: Assets = Liabilities + Equity .The accounting equation is made visible in the balance sheet, where the total amount of assets listed must equal the total of all liabilities and equity.
6. ACCOUNTING PERIOD CONCEPT – According to this concept, accounting should measure transactions at regular intervals for a specified period of time called accounting period. Necessary financial disclosures and reporting need to be made at the end of accounting period which may be quarterly, half-yearly or yearly.
7. MATCHING CONCEPT – This concept is also known as periodic matching of cost and revenue. According to this concept, profits made by business in particular accounting period can be ascertained only when the revenues earned during the period are compared with the expenses incurred in earning the revenue.
1) The accounting equation shows that a company's assets are always equal to its liabilities plus equity.
2) Double entry accounting requires every transaction to have equal debits and credits so the accounting equation remains balanced.
3) Examples of transactions that affect the accounting equation include purchasing inventory, receiving payment from customers, and paying expenses.
I believe that the most important thing an organization should do (in fact, that's why they are called organizations) is to align and galvanize each and every individual's goals, each team, each workgroup, each staff, each contractor with the goals of the organization.
This document provides an overview of market demand theory including definitions of demand, the demand curve, factors that shift the demand curve, and the concepts of utility and diminishing marginal utility. It defines demand as the quantity consumers are willing and able to purchase at a given price. The demand curve illustrates the inverse relationship between price and quantity demanded. Factors like income levels, prices of substitutes/complements, and advertising can cause the demand curve to shift. Utility represents satisfaction from consumption, and the idea of diminishing marginal utility explains why demand curves slope downward.
Most of the important things in the world have been accomplished by people who have kept on trying when there seemed to be no hope at all.
There are no secrets to success. It is the result of preparation, hard work, and learning from failure.
This document provides an overview of the objectives of a business. It discusses the economic, social, human, national, and global objectives of a business. The economic objectives include profit earning, customer creation, innovation, and efficient resource use. Social objectives involve producing quality goods/services, fair trade practices, and contributing to society. Human objectives center around employee well-being, satisfaction, development, and helping disadvantaged groups. National objectives consist of job creation, social justice, prioritizing domestic production, and generating government revenue. Global objectives pertain to expanding international trade and complying with global standards.
This document discusses different types of business entities including sole proprietorships, partnerships, private companies, public companies, and non-profit organizations. It provides details on their key characteristics such as ownership, capital structure, management, liability, legal status, registration process, profit sharing, and business risks. The types of business entities vary in their complexity, from the simple sole proprietorship to the more complex public company. Financial reporting also differs depending on the applicable rules and regulations for each entity type.
The personal selling process involves several steps from identifying and qualifying potential customers through closing the sale and following up. It starts with prospecting and qualifying customers to determine if their needs align with the company's products. Next, the salesperson prepares for their initial approach, where they make contact and assess the customer's specific wants. They then present and demonstrate the product features, handling any objections before closing by securing an order. Follow up ensures customer satisfaction and builds relationships for repeat business.
This document provides an overview of key marketing concepts from a global perspective. It begins by defining marketing as the process of planning, pricing, promoting and distributing goods and services to create value for customers. The marketing mix of product, price, place and promotion is discussed. The document also distinguishes between marketing and sales, explores the scope of what can be marketed, and covers core concepts like customer needs, value, and the marketing environment. Key frameworks are summarized, including the marketing system, 4Ps and 4Cs, and the strategic marketing process. The roles of various stakeholders in marketing are also outlined.
Cost accounting arose to overcome the limitations of financial accounting in providing useful cost data and information to management for planning, decision-making, and control. Financial accounting only provides aggregate, past-oriented data and does not adequately account for factors like price changes, wastage, or provide data needed for setting prices. Cost accounting develops costing principles, methods, and techniques to ascertain detailed product and process costs, enable cost control, and provide relevant information to management. It has grown to encompass costing, cost accounting, budgeting, standard costing, and cost auditing. While related, cost accounting has a broader scope focused on internal reporting, compared to the external reporting focus of financial accounting.
The document discusses the characteristics of a selling concept, which focuses on selling products to meet the seller's needs rather than the customer's needs. It educates and attracts customers. Examples of selling-oriented companies provided include insurance, online shopping, and door-to-door selling. Amway is discussed as a direct selling company that has expanded to over 100 countries and employs over 3 million people across five product categories. Advantages include increased sales volume and market opportunities, while disadvantages are the time needed to train employees and the reliance on sellers for sales volume.
The document discusses pricing decisions and advertising. It covers the meaning of pricing, objectives of pricing like market penetration and skimming. Factors influencing pricing like costs, competition and economic conditions are examined. Methods of pricing such as cost-plus, target-profit and going-rate pricing are outlined. Advertising is defined and its characteristics like being paid communication and exposing prospects to messages are explained. Various advertising mediums like newspapers, magazines, radio, television and direct mail are also described.
Introduction to business, BUSINESS definitionRakibul islam
Business involves profit-seeking and non-profit activities that provide goods and services to satisfy human needs and wants. It aims to generate profit while satisfying standards of living. Non-profit organizations also operate like businesses but their primary goal is not generating returns for owners. Business has evolved from early agricultural economies to modern service and internet-based economies. Revenue is the money a business earns from sales, profit is earnings after expenses, and loss occurs when expenses are greater than revenues. The objectives of business are survival, social responsibility, and growth while its role in society is satisfying needs through efficient use of limited resources.
The document discusses the concept of profit maximization for firms. It states that firms aim to maximize profits by producing at the quantity where marginal revenue equals marginal cost. Marginal revenue is the change in total revenue from selling one more unit, while marginal cost is the change in total cost from producing one more unit. The profit-maximizing level of output occurs when marginal revenue and marginal cost are equal, as this is where profits are highest.
Measures of cost of capital
The cost of capital is the cost of obtaining funds, through debt or equity, in order to finance an investment.
The cost of capital represents the overall cost of financing to the firm.
Monopolistic competition is a market structure with many small businesses that produce differentiated products. Each business has some control over price due to product differentiation but faces competition from substitutable products. Key features include differentiated but substitutable products, many sellers and buyers, free entry and exit, and profit maximization through product differentiation and non-price competition like advertising. In long run equilibrium, firms earn only normal profits as entry by new firms eliminates excess profits. Output is lower and prices higher under monopolistic competition compared to perfect competition.
This document provides a framework for managing strategic change including diagnosing the type and context of change, analyzing forces for and against change, and identifying levers to manage change. It outlines four types of strategic change: adaptation, evolution, revolution, and reconstruction. The context of change is determined by factors like time, scope, preservation needs, diversity, capability, capacity, readiness, and power. Change is managed through styles like education, collaboration, and direction played by roles of change agents and strategic leadership. Levers for managing change involve structure, routines, symbols, politics, communication, and tactics.
This document provides an introduction and table of contents for a course on Introduction to Business (MGT211). It outlines 45 lessons covering topics such as organizational structures, business organizations, marketing, accounting, and finance. The lessons progress from introductory concepts to more specialized topics within each business discipline.
This document discusses the concepts of price and pricing. It defines price as the amount of money charged for a product or service. Pricing is described as the process of setting prices. A 6 step process for pricing is outlined including selecting objectives, determining demand, estimating costs, analyzing competitors, selecting a pricing method, and setting the final price. The roles and functions of price are also summarized, such as communicating value to customers, influencing competition, and impacting financial performance.
Topic 3 Size of business Cambridge AS and A LevelEezy Champion
This document discusses different ways to measure business size and the significance of small businesses. It provides 5 different measures of business size: number of employees, sales turnover, capital employed, market capitalization, and market share. Each measure is explained along with examples. Small businesses are significant because they create jobs, encourage entrepreneurship, provide competition, and can adapt quickly. Government assistance for small businesses includes tax reductions, loan guarantee schemes, and information/advice. The advantages and disadvantages of small and large businesses are also outlined.
This document discusses firms and their classification, growth, and economics of scale. It begins by classifying firms by industry, sector, ownership, and size. Small firms exist for several reasons like market size, consumer preferences, and flexibility. Firms can grow internally or externally through mergers. Mergers can be horizontal, vertical, or conglomerate, and are often done to achieve rationalization. Economics of scale refer to lower costs from increased production, while diseconomies refer to higher costs. Both internal and external scales can impact firms and industries.
ACCOUNTING CONCEPTS:-
1. SEPARATE ENTITY CONCEPT – According to this concept, business is considered as a separate legal entity which has its distinct identity separate from its owner. This concept is extremely useful in keeping business affairs strictly free from private affairs of owner. This is the reason why withdrawal by owner from business is treated as drawing.
2. GOING CONCERN CONCEPT – According to this concept, it is assumed that business is established and will continue for a fairly long time in future. This is the reason why while valuing assets of firm current resale value is not taken into account instead depreciation is charge on basis of their expected life.
3. MONEY MEASUREMENT CONCEPT – According to this concept, accounting should necessarily record only those transactions which can be expressed in monetary terms. This is the reason why qualitative facts like change in management are not recorded in books of account.
4. COST CONCEPT – This concept is closely related to going concern concept and emphasizes that asset should be recorded at its cost price and not market price which keeps on changing.
5. DUAL ASPECT CONCEPT – The dual aspect concept states that every business transaction requires recordation in two different accounts. The concept is derived from the accounting equation, which states that: Assets = Liabilities + Equity .The accounting equation is made visible in the balance sheet, where the total amount of assets listed must equal the total of all liabilities and equity.
6. ACCOUNTING PERIOD CONCEPT – According to this concept, accounting should measure transactions at regular intervals for a specified period of time called accounting period. Necessary financial disclosures and reporting need to be made at the end of accounting period which may be quarterly, half-yearly or yearly.
7. MATCHING CONCEPT – This concept is also known as periodic matching of cost and revenue. According to this concept, profits made by business in particular accounting period can be ascertained only when the revenues earned during the period are compared with the expenses incurred in earning the revenue.
1) The accounting equation shows that a company's assets are always equal to its liabilities plus equity.
2) Double entry accounting requires every transaction to have equal debits and credits so the accounting equation remains balanced.
3) Examples of transactions that affect the accounting equation include purchasing inventory, receiving payment from customers, and paying expenses.
I believe that the most important thing an organization should do (in fact, that's why they are called organizations) is to align and galvanize each and every individual's goals, each team, each workgroup, each staff, each contractor with the goals of the organization.
This document provides an overview of market demand theory including definitions of demand, the demand curve, factors that shift the demand curve, and the concepts of utility and diminishing marginal utility. It defines demand as the quantity consumers are willing and able to purchase at a given price. The demand curve illustrates the inverse relationship between price and quantity demanded. Factors like income levels, prices of substitutes/complements, and advertising can cause the demand curve to shift. Utility represents satisfaction from consumption, and the idea of diminishing marginal utility explains why demand curves slope downward.
Most of the important things in the world have been accomplished by people who have kept on trying when there seemed to be no hope at all.
There are no secrets to success. It is the result of preparation, hard work, and learning from failure.
This document provides an overview of the objectives of a business. It discusses the economic, social, human, national, and global objectives of a business. The economic objectives include profit earning, customer creation, innovation, and efficient resource use. Social objectives involve producing quality goods/services, fair trade practices, and contributing to society. Human objectives center around employee well-being, satisfaction, development, and helping disadvantaged groups. National objectives consist of job creation, social justice, prioritizing domestic production, and generating government revenue. Global objectives pertain to expanding international trade and complying with global standards.
This document discusses different types of business entities including sole proprietorships, partnerships, private companies, public companies, and non-profit organizations. It provides details on their key characteristics such as ownership, capital structure, management, liability, legal status, registration process, profit sharing, and business risks. The types of business entities vary in their complexity, from the simple sole proprietorship to the more complex public company. Financial reporting also differs depending on the applicable rules and regulations for each entity type.
The personal selling process involves several steps from identifying and qualifying potential customers through closing the sale and following up. It starts with prospecting and qualifying customers to determine if their needs align with the company's products. Next, the salesperson prepares for their initial approach, where they make contact and assess the customer's specific wants. They then present and demonstrate the product features, handling any objections before closing by securing an order. Follow up ensures customer satisfaction and builds relationships for repeat business.
This document provides an overview of key marketing concepts from a global perspective. It begins by defining marketing as the process of planning, pricing, promoting and distributing goods and services to create value for customers. The marketing mix of product, price, place and promotion is discussed. The document also distinguishes between marketing and sales, explores the scope of what can be marketed, and covers core concepts like customer needs, value, and the marketing environment. Key frameworks are summarized, including the marketing system, 4Ps and 4Cs, and the strategic marketing process. The roles of various stakeholders in marketing are also outlined.
Cost accounting arose to overcome the limitations of financial accounting in providing useful cost data and information to management for planning, decision-making, and control. Financial accounting only provides aggregate, past-oriented data and does not adequately account for factors like price changes, wastage, or provide data needed for setting prices. Cost accounting develops costing principles, methods, and techniques to ascertain detailed product and process costs, enable cost control, and provide relevant information to management. It has grown to encompass costing, cost accounting, budgeting, standard costing, and cost auditing. While related, cost accounting has a broader scope focused on internal reporting, compared to the external reporting focus of financial accounting.
The document discusses the characteristics of a selling concept, which focuses on selling products to meet the seller's needs rather than the customer's needs. It educates and attracts customers. Examples of selling-oriented companies provided include insurance, online shopping, and door-to-door selling. Amway is discussed as a direct selling company that has expanded to over 100 countries and employs over 3 million people across five product categories. Advantages include increased sales volume and market opportunities, while disadvantages are the time needed to train employees and the reliance on sellers for sales volume.
The document discusses pricing decisions and advertising. It covers the meaning of pricing, objectives of pricing like market penetration and skimming. Factors influencing pricing like costs, competition and economic conditions are examined. Methods of pricing such as cost-plus, target-profit and going-rate pricing are outlined. Advertising is defined and its characteristics like being paid communication and exposing prospects to messages are explained. Various advertising mediums like newspapers, magazines, radio, television and direct mail are also described.
Introduction to business, BUSINESS definitionRakibul islam
Business involves profit-seeking and non-profit activities that provide goods and services to satisfy human needs and wants. It aims to generate profit while satisfying standards of living. Non-profit organizations also operate like businesses but their primary goal is not generating returns for owners. Business has evolved from early agricultural economies to modern service and internet-based economies. Revenue is the money a business earns from sales, profit is earnings after expenses, and loss occurs when expenses are greater than revenues. The objectives of business are survival, social responsibility, and growth while its role in society is satisfying needs through efficient use of limited resources.
The document discusses the concept of profit maximization for firms. It states that firms aim to maximize profits by producing at the quantity where marginal revenue equals marginal cost. Marginal revenue is the change in total revenue from selling one more unit, while marginal cost is the change in total cost from producing one more unit. The profit-maximizing level of output occurs when marginal revenue and marginal cost are equal, as this is where profits are highest.
Measures of cost of capital
The cost of capital is the cost of obtaining funds, through debt or equity, in order to finance an investment.
The cost of capital represents the overall cost of financing to the firm.
Monopolistic competition is a market structure with many small businesses that produce differentiated products. Each business has some control over price due to product differentiation but faces competition from substitutable products. Key features include differentiated but substitutable products, many sellers and buyers, free entry and exit, and profit maximization through product differentiation and non-price competition like advertising. In long run equilibrium, firms earn only normal profits as entry by new firms eliminates excess profits. Output is lower and prices higher under monopolistic competition compared to perfect competition.
This document provides a framework for managing strategic change including diagnosing the type and context of change, analyzing forces for and against change, and identifying levers to manage change. It outlines four types of strategic change: adaptation, evolution, revolution, and reconstruction. The context of change is determined by factors like time, scope, preservation needs, diversity, capability, capacity, readiness, and power. Change is managed through styles like education, collaboration, and direction played by roles of change agents and strategic leadership. Levers for managing change involve structure, routines, symbols, politics, communication, and tactics.
This document provides an introduction and table of contents for a course on Introduction to Business (MGT211). It outlines 45 lessons covering topics such as organizational structures, business organizations, marketing, accounting, and finance. The lessons progress from introductory concepts to more specialized topics within each business discipline.
This document discusses the concepts of price and pricing. It defines price as the amount of money charged for a product or service. Pricing is described as the process of setting prices. A 6 step process for pricing is outlined including selecting objectives, determining demand, estimating costs, analyzing competitors, selecting a pricing method, and setting the final price. The roles and functions of price are also summarized, such as communicating value to customers, influencing competition, and impacting financial performance.
Topic 3 Size of business Cambridge AS and A LevelEezy Champion
This document discusses different ways to measure business size and the significance of small businesses. It provides 5 different measures of business size: number of employees, sales turnover, capital employed, market capitalization, and market share. Each measure is explained along with examples. Small businesses are significant because they create jobs, encourage entrepreneurship, provide competition, and can adapt quickly. Government assistance for small businesses includes tax reductions, loan guarantee schemes, and information/advice. The advantages and disadvantages of small and large businesses are also outlined.
This document discusses firms and their classification, growth, and economics of scale. It begins by classifying firms by industry, sector, ownership, and size. Small firms exist for several reasons like market size, consumer preferences, and flexibility. Firms can grow internally or externally through mergers. Mergers can be horizontal, vertical, or conglomerate, and are often done to achieve rationalization. Economics of scale refer to lower costs from increased production, while diseconomies refer to higher costs. Both internal and external scales can impact firms and industries.
The document discusses the various objectives of a firm, including:
1) Profit maximization, which aims to generate the highest profits for shareholders.
2) Sales maximization, which focuses on selling as much output as possible while earning normal profits.
3) Revenue maximization, which occurs when marginal revenue from additional sales is zero.
4) Managers may also pursue objectives like increasing market share, firm size, or their own utility through salaries and perks.
Factors Influencing Small Business Growthsri24ram2024
In entrepreneurship, the growth of small businesses is shaped by diverse factors. Economic conditions, regulatory environment, market dynamics, financial management, and internal factors like leadership and innovation play pivotal roles. Recognizing and navigating these influences are essential for small business owners seeking sustainable growth in a dynamic business landscape.
Internal Diseconomies of Scale occur when a firm expands beyond its optimal scale of production. This can lead to rising average costs as variable costs outweigh falling fixed costs. There are also management diseconomies that can occur in large firms, including communication difficulties, slow decision-making, bureaucracy, and information overload for managers. Small firms are able to survive despite potential economies of scale for large firms by focusing on niche markets, providing personalized service, flexibility to changing markets, and through collective marketing and buying arrangements that provide scale advantages. Franchising also allows small operators to benefit from size advantages through support from larger franchisers.
Market penetration refers to the percentage of a target market that uses a specific product or service. It can be measured as a company's sales as a percentage of the total sales for that product category. The document discusses various tactics for increasing market penetration, such as knowing the risks of entering new markets versus focusing on existing markets, creating barriers to entry for competitors, being unique in marketing approaches, diversifying product lines, and forming strategic alliances. It emphasizes using multiple tactics together for the most effective market penetration.
The document discusses various strategies for business growth, including internal (organic) growth and external growth through mergers and acquisitions (M&As). It describes different types of M&As like mergers, takeovers, joint ventures, and franchising. It also explains the Ansoff Matrix, a tool that analyzes four growth strategies ranging from low to high risk: market penetration, product development, market development, and diversification. Overall, the document provides an overview of strategic options for expanding a business through both organic means and external partnerships or acquisitions.
Economies of scale occur when the average costs of production fall as output increases, due to factors like specialization and bulk purchasing. There are internal economies within a firm from things like dedicated machinery and external economies from shared industry infrastructure. While economies of scale can lower prices, they can also create monopolies if used to deter new competition or standardize products. Diseconomies arise at very large scales due to issues like difficulty monitoring employees and loss of morale.
This document discusses entrepreneurship, business growth, and reasons for business success or failure. It notes that entrepreneurs take on risks but have independence. Successful entrepreneurs work hard, take risks, are creative, optimistic, and innovative. The document also discusses how governments support startups, the importance of business plans, and ways to measure business size, such as number of employees or sales. Business growth allows higher profits but can cause problems like diseconomies of scale if not managed properly. Some businesses stay small due to their industry, market size, or owners' objectives. Reasons for business failure include poor management, failure to change or plan finances properly, overexpansion, and economic or competitive influences.
1) The document discusses different corporate objectives including profit maximization, share price maximization, revenue maximization, sales maximization, and social entrepreneurship.
2) It explains the concept of profit maximization using marginal cost and marginal revenue, where a firm will produce up to the point where marginal cost equals marginal revenue.
3) The document also discusses alternatives to pure profit maximization including satisficing behavior, where firms aim to generate sufficient profits to satisfy shareholders rather than always seeking to maximize profits.
1
MARGINS AND SALES VOLUME
Module 4 Case: Margins and Sales Volume
Margins and Sales Volume
Introduction
Pricing margins and markups are the first steps in determining how profitable a product or service is. Pricing margins are significant factors for the success of a business. Therefore, producers, manufacturers, or service givers consider the margin when determining how to price their products. A producer might wish to earn as much margin as possible, but the price must be at a competitive level.
Industry Description
The lead logistics provides comprehensive solutions to coordinate and integrate all supply chain members using information and communication technologies (ICT) and are often specialized consulting companies. Lead logistics industry manages supply chain solutions providing end-to-end logistics services. The lead logistics industry has experienced a paradigm shift over the last few decades. Revolutionary change has happened from how manual operations were done to more technology-based operations. Many companies have tapped into the innovation space to better services provided to customers, optimize investment, and cut unnecessary costs. These businesses can either be small establishments only serving the neighborhood, regional to serve a country and probably its strategic neighborhood, or global with footprints worldwide. Integration of Information Technology (IT) systems in the logistics industry has significantly improved efficiency. In lead logistics, a consultation can be sought and offered over the internet without necessarily physical presence.
Margins and Markups
The pricing margin of a product or service is the difference between the cost of the product or service is offered to customers and the cost of acquiring such product or service (Demuynck & Parenti, 2018). For example, if a service provider incurs $1500 to provide a service, then charges the service for $1800, the margin is $300, also referred to as profit margin. Markup is computed as a percentage difference between the selling price and a product or service cost. For example, if a service sells for $1800 and costs $1600, the additional price increase is ($1800 – $1600) / $1600) x 100 = 12.5%.
Lead logistics experience relatively large margins worldwide as compared to other industries. Being non-assets based, no revenues passed to the carrier, thus even higher margins. Per service rendered, the margins in the US are between 15 – 25%. It is worth noting that the jobs are not many and a quite time-consuming, limiting the number of contracts a company can take up over a specific period. In 2015, the average grocery industry margin was 16.5 percent (Tozanli, 2017).
Economic factors that affect Markups
In any industry, margins and markups are vital indicators of business performance. The business operators should therefore be able to interpret each of these indicators and make sound decisions correctly. Factors affecting markup include;
i ...
The business plan is a document that helps small business owners determine the resources needed to achieve objectives and provides a standard to evaluate results. It serves as a management guide and is required to secure lenders and investors. The business plan includes an executive summary, description of the business and products/services, market strategies, operations and management overview, and financial projections like income statements, balance sheets, and cash flow statements. Supporting documents like resumes and contracts are also typically included.
This document discusses economies and diseconomies of scale. It explains that economies of scale are factors that cause average unit costs to fall as output increases, while diseconomies of scale cause average costs to rise with increased output. The document provides examples of economies of scale like bulk buying and technical efficiencies. It also discusses potential diseconomies like poor employee motivation, communication, and managerial coordination issues that can arise in large firms. Overall, it analyzes how both economies and diseconomies can impact costs as businesses grow.
The document discusses the importance of business model innovation for companies to remain competitive. It argues that most companies are "stuck in the middle", neither large enough to dominate nor differentiated enough to find a niche. It then outlines four key areas that determine company success: the markets it serves, its products/services, operating model, and cost structure. It stresses the need to re-examine these areas and be open to reinventing one's business model to create new value for customers and shareholders in a sustainable way.
This document discusses costing and pricing strategies for businesses. It defines different types of costs like direct, indirect, fixed and variable costs. It also explains how to calculate the cost per unit of production and break-even point. The document then discusses various pricing strategies like premium pricing, penetration pricing, price skimming, economy pricing and psychological pricing. It emphasizes the importance of understanding costs and setting the right price point to maximize profits.
IntroductionPart 1 Family Business Overview and StakeholdersD.docxnormanibarber20063
Introduction
Part 1: Family Business Overview and Stakeholders
Descriptive Overview of the Business
Family businesses are the major contributor to the society and economy by providing jobs, money and increase business activities. ‘Saleemi Book Depot’ is amongst the famous family businesses in Pakistan. The business founded in 1967 by Shareef Saleemi as a single owner of the company with his three sons named Saeed Ahmad, Muhammad Rasheed and Muhammad Shafeeq. Mr. Shareef started as a book store that provides books for school, stationary and office products to the local area and the shop was located in local area because it was cheap to pay for rent. After the hard work of years Mr. Sahreef started working as a wholesale dealer and start expanding the operation of the company by buying a Van to supply products to the shops in different areas in 1980. In 1988, a major backward integration took place by starting production of Copies and Registers in the main City of Lahore. In 1990, new partner introduced named ‘’Tariq Munir’’ son of Mr. Shareef,s brother and another big van bought to expand operations at higher level.
Organisation’s stage of development on the three dimensions of ownership, family and business
By changing the location of the show room and store room from local area to the town center was a major successful change in the business by Mr. Sahreef in 1993 whereas, in 1996 Mr. Shareef passed away by distributing the partnership in three brothers and one cousin four in total. New factory was purchased in 1998 with the name of ‘Zubair Copy House’ which increased the production of the supply for the show room. In 2000, Mr. Rasheed and Mr. Shafeeq two youger brother of Mr. Saeed decided to leave the and Mr. Saeed introduced Mr. Jabbar (Nephew) as an official partner with Mr. Saeed and Mr. Tariq (Cousin). After that Mr. Saeed Ahmad the eldest son of Mr. Shareef took care of the operations very well by being an official distributor of ‘’Ittehad Group of industries’’ in 2013.
Genealogy charts and Key Events Timeline
The city of Ahmadpur east was under developed so the roads were too small, in 2014 government gave the orders to expand the road of town center which led to the change of location for the show room at the same place of Store room and joined both operations in single point to become more efficient. 2015, 2017 and 2018 were the main years of the big success of the company as the company opened New Show room on ground floor joined with the store room on the upper 4 levels of the building, bought new automatic machine for the production of copies and registers as before that all the products were hand made, and introduction of computerized system with the introduction of barcode system on the full stock produced by ‘Zubair Copy House’ respectively and the sales increased by higher percentage than ever before.
At current stage the Company is operating as Four partner as Mr. Hamza Saeed son of Mr. Saeed and grandson of Mr. Shar.
STMC is planning to introduce spare parts for a new textile machine in the Indian market. They currently face competition from smaller machine shops that offer lower prices. STMC sells directly to mills while competitors use intermediaries. STMC's marketing strategy should focus on aggressively promoting awareness of their products through trade shows and advertisements. They should make it easy for potential customers to try their products and offer services like maintenance contracts to build loyalty. Implementing this strategy would help STMC gain market share before competitors enter the market and allow STMC to benefit from economies of scale.
The document discusses how mid-sized companies can use data to compete with digital giants. It provides the example of a fictional furniture retailer, Edison's, that was struggling during the pandemic. Edison's analyzed its customer and sales data to identify profitable versus unprofitable customers. It realigned its resources and customer service around retaining and attracting profitable customers. As a result, Edison's profits increased significantly. The document concludes that mid-sized companies can leverage their unique strengths, collect and analyze customer data, and implement data-driven strategies to compete effectively even against large digital competitors.
Discover timeless style with the 2022 Vintage Roman Numerals Men's Ring. Crafted from premium stainless steel, this 6mm wide ring embodies elegance and durability. Perfect as a gift, it seamlessly blends classic Roman numeral detailing with modern sophistication, making it an ideal accessory for any occasion.
https://rb.gy/usj1a2
How MJ Global Leads the Packaging Industry.pdfMJ Global
MJ Global's success in staying ahead of the curve in the packaging industry is a testament to its dedication to innovation, sustainability, and customer-centricity. By embracing technological advancements, leading in eco-friendly solutions, collaborating with industry leaders, and adapting to evolving consumer preferences, MJ Global continues to set new standards in the packaging sector.
Taurus Zodiac Sign: Unveiling the Traits, Dates, and Horoscope Insights of th...my Pandit
Dive into the steadfast world of the Taurus Zodiac Sign. Discover the grounded, stable, and logical nature of Taurus individuals, and explore their key personality traits, important dates, and horoscope insights. Learn how the determination and patience of the Taurus sign make them the rock-steady achievers and anchors of the zodiac.
❼❷⓿❺❻❷❽❷❼❽ Dpboss Matka Result Satta Matka Guessing Satta Fix jodi Kalyan Final ank Satta Matka Dpbos Final ank Satta Matta Matka 143 Kalyan Matka Guessing Final Matka Final ank Today Matka 420 Satta Batta Satta 143 Kalyan Chart Main Bazar Chart vip Matka Guessing Dpboss 143 Guessing Kalyan night
3 Simple Steps To Buy Verified Payoneer Account In 2024SEOSMMEARTH
Buy Verified Payoneer Account: Quick and Secure Way to Receive Payments
Buy Verified Payoneer Account With 100% secure documents, [ USA, UK, CA ]. Are you looking for a reliable and safe way to receive payments online? Then you need buy verified Payoneer account ! Payoneer is a global payment platform that allows businesses and individuals to send and receive money in over 200 countries.
If You Want To More Information just Contact Now:
Skype: SEOSMMEARTH
Telegram: @seosmmearth
Gmail: seosmmearth@gmail.com
The 10 Most Influential Leaders Guiding Corporate Evolution, 2024.pdfthesiliconleaders
In the recent edition, The 10 Most Influential Leaders Guiding Corporate Evolution, 2024, The Silicon Leaders magazine gladly features Dejan Štancer, President of the Global Chamber of Business Leaders (GCBL), along with other leaders.
[To download this presentation, visit:
https://www.oeconsulting.com.sg/training-presentations]
This PowerPoint compilation offers a comprehensive overview of 20 leading innovation management frameworks and methodologies, selected for their broad applicability across various industries and organizational contexts. These frameworks are valuable resources for a wide range of users, including business professionals, educators, and consultants.
Each framework is presented with visually engaging diagrams and templates, ensuring the content is both informative and appealing. While this compilation is thorough, please note that the slides are intended as supplementary resources and may not be sufficient for standalone instructional purposes.
This compilation is ideal for anyone looking to enhance their understanding of innovation management and drive meaningful change within their organization. Whether you aim to improve product development processes, enhance customer experiences, or drive digital transformation, these frameworks offer valuable insights and tools to help you achieve your goals.
INCLUDED FRAMEWORKS/MODELS:
1. Stanford’s Design Thinking
2. IDEO’s Human-Centered Design
3. Strategyzer’s Business Model Innovation
4. Lean Startup Methodology
5. Agile Innovation Framework
6. Doblin’s Ten Types of Innovation
7. McKinsey’s Three Horizons of Growth
8. Customer Journey Map
9. Christensen’s Disruptive Innovation Theory
10. Blue Ocean Strategy
11. Strategyn’s Jobs-To-Be-Done (JTBD) Framework with Job Map
12. Design Sprint Framework
13. The Double Diamond
14. Lean Six Sigma DMAIC
15. TRIZ Problem-Solving Framework
16. Edward de Bono’s Six Thinking Hats
17. Stage-Gate Model
18. Toyota’s Six Steps of Kaizen
19. Microsoft’s Digital Transformation Framework
20. Design for Six Sigma (DFSS)
To download this presentation, visit:
https://www.oeconsulting.com.sg/training-presentations
Best practices for project execution and deliveryCLIVE MINCHIN
A select set of project management best practices to keep your project on-track, on-cost and aligned to scope. Many firms have don't have the necessary skills, diligence, methods and oversight of their projects; this leads to slippage, higher costs and longer timeframes. Often firms have a history of projects that simply failed to move the needle. These best practices will help your firm avoid these pitfalls but they require fortitude to apply.
Anny Serafina Love - Letter of Recommendation by Kellen Harkins, MS.AnnySerafinaLove
This letter, written by Kellen Harkins, Course Director at Full Sail University, commends Anny Love's exemplary performance in the Video Sharing Platforms class. It highlights her dedication, willingness to challenge herself, and exceptional skills in production, editing, and marketing across various video platforms like YouTube, TikTok, and Instagram.
The APCO Geopolitical Radar - Q3 2024 The Global Operating Environment for Bu...APCO
The Radar reflects input from APCO’s teams located around the world. It distils a host of interconnected events and trends into insights to inform operational and strategic decisions. Issues covered in this edition include:
Zodiac Signs and Food Preferences_ What Your Sign Says About Your Tastemy Pandit
Know what your zodiac sign says about your taste in food! Explore how the 12 zodiac signs influence your culinary preferences with insights from MyPandit. Dive into astrology and flavors!
Unveiling the Dynamic Personalities, Key Dates, and Horoscope Insights: Gemin...my Pandit
Explore the fascinating world of the Gemini Zodiac Sign. Discover the unique personality traits, key dates, and horoscope insights of Gemini individuals. Learn how their sociable, communicative nature and boundless curiosity make them the dynamic explorers of the zodiac. Dive into the duality of the Gemini sign and understand their intellectual and adventurous spirit.
How to Implement a Real Estate CRM SoftwareSalesTown
To implement a CRM for real estate, set clear goals, choose a CRM with key real estate features, and customize it to your needs. Migrate your data, train your team, and use automation to save time. Monitor performance, ensure data security, and use the CRM to enhance marketing. Regularly check its effectiveness to improve your business.
[To download this presentation, visit:
https://www.oeconsulting.com.sg/training-presentations]
This presentation is a curated compilation of PowerPoint diagrams and templates designed to illustrate 20 different digital transformation frameworks and models. These frameworks are based on recent industry trends and best practices, ensuring that the content remains relevant and up-to-date.
Key highlights include Microsoft's Digital Transformation Framework, which focuses on driving innovation and efficiency, and McKinsey's Ten Guiding Principles, which provide strategic insights for successful digital transformation. Additionally, Forrester's framework emphasizes enhancing customer experiences and modernizing IT infrastructure, while IDC's MaturityScape helps assess and develop organizational digital maturity. MIT's framework explores cutting-edge strategies for achieving digital success.
These materials are perfect for enhancing your business or classroom presentations, offering visual aids to supplement your insights. Please note that while comprehensive, these slides are intended as supplementary resources and may not be complete for standalone instructional purposes.
Frameworks/Models included:
Microsoft’s Digital Transformation Framework
McKinsey’s Ten Guiding Principles of Digital Transformation
Forrester’s Digital Transformation Framework
IDC’s Digital Transformation MaturityScape
MIT’s Digital Transformation Framework
Gartner’s Digital Transformation Framework
Accenture’s Digital Strategy & Enterprise Frameworks
Deloitte’s Digital Industrial Transformation Framework
Capgemini’s Digital Transformation Framework
PwC’s Digital Transformation Framework
Cisco’s Digital Transformation Framework
Cognizant’s Digital Transformation Framework
DXC Technology’s Digital Transformation Framework
The BCG Strategy Palette
McKinsey’s Digital Transformation Framework
Digital Transformation Compass
Four Levels of Digital Maturity
Design Thinking Framework
Business Model Canvas
Customer Journey Map
2. Define Business Size
It is an overall operational scale which is
important, to determine the performance of a
business and draw a comparison….
with the competing firms
with the past performance of a business
2
7. Stakeholders
good on credit
To set up credit period( large
business have reputation &
credibility & large order quite
frequently given)
Suppliers
7
8. Stakeholders
To decide about extension of
loans(Short term/long term)
Collateral
Overdraft facility
Banks:
8
9. Stakeholders
Short term:
Capital gain: It is solely used for
the profit generated on the
difference b/w the selling price &
the buying price of a share
Long term: Dividends & Increase
in shareholder’s wealth (e.g.
Increase in the value/price of a
share)
Investor:
9
10. Stakeholders
To make decisions about the
products
For repeat purchases and to
continue with the future
products as well
Customers:
10
13. Methods of measuring a business size
(The Business Intensity Should be Same During Comparison)
.
Number of employees:
Greater the number of employees, greater the business but a business may be labour or capital intensive.
We need to check the intensity of the business, if a business is capital intensive it would definitely have less
labour however, it would not be classified as a small business. Rations, lectures, and speeches.
13
14. Number of employees
Number of employees is the most commonly used method to assess and
measure the business size that is apparently a business having employed
more staff would be considered as a large organization. This method can be
deceptive if a business is compared with another business with very limited
number of staff employed, but because of high capital intensity machines
and automation of plant the output is exponentially higher than a business
with more number of staff employed.
14
15. Sales Turnover
.
Check the type of the business, number of customers
and nature of the product
Jewelry => RS 9,000,000/day => 6 – 7 customers
Departmental store => RS 400,000 day => 700 – 800
customers
15
16. Sales revenue is also widely used to assess the business size, which can be
calculated as the (number of units sold × S.P per unit) can still lead to
misleading results unless the nature of business and the value of item being
sold are taken into account.
For example a business of daily sales of RS 400,000 will be considered
smaller when compare with a firm (B) with sales value of 900,000 a day, this
is because 400,000 might be generated by an FMCG Business (daily use
products) having served more than 800 customers a day for example as
compared to a Jewellery business with sales of RS 900,000 a day but having
served only 6 – 7 customers. The value of the product being sold difference
substantially, Which is a real cause of misleading results.
Sales turnover
16
18. Capital employed is the entire amount of investment
which has been made in the business, there is a clear
possibility that high investment owing to the nature of
product and compared to a tertiary sector (service
industry) where substantial revenue would be charged
for service being offered.
For example: a corporate lawyer with a minimum
investment of furniture books and will charge a heavy
amount, for every corporate client.
Capital employed
18
19. Market Share
It is the sales of a business expressed as a
percentage sales of the entire industry, of
the specific product, over a given period of
time.
Formula= Total sales of the business ×100
Total sales of the industry
19
20. Market capitalization
Number of share issued × current share price
Only for public limited company.
Share price keeps on fluctuating because the performance of a business may
change
The number of shares issued (depends upon the capital need of business) which
could be different for different firms.
Market capitalization method is applicable for public limited companies only,
which are listed on the stock market.
Market capitalization can be found using a (formula = Number of shares issue ×
the current share price) however, the problem using this formula is both the
components are variable in nature.
20
21. Market capitalization
The current share price: Since the share keeps fluctuating and does not remain
constant because it is an indicator of the performance of a business. The forces of
demand & supply will deter mine the forces for demand & supply will determine the
share price, Therefore it is largely affected by the performance of a business.
Moreover, No two businesses will necessary have identical number of shares issued,
this is because issuance of the shares depends on the capital need of the business
which will be different from each other, Hence for a competitive measure, this is not
a very appropriate method.
Most Importantly
If the growth rate of a business is equal to or greater than the growth rate of the
industry then the business is performing well.
It may be possible that a business has a greater market share but the Market size
may be small enough.
21
23. Market Size
Market size can be termed as the total value of sales made by the businesses
of a specific industry for a specific product with specified period of time.
For example: - Market size of a telecom industry in Pakistan during 2015 was
Ufone = 200m
Mobilink = 100m
Telenor =100m
Warid = 50m
Zong = 50m
= 500m market size / Industry
23
24. Market Size
Importance:
To know the growth of a business, so that investment could be made
Market size/ growth is an essential factor, which enables business to decide
whether to step in a market or not. If the market size is increasing at a higher
growth rate and has reached saturation (where the market size is constant) shows
more potential of growth & a worthwhile investment
24
25. Market Share
Market Share can be defined as the sales of a business, expressed as a
percentage sales of the entire industry within a specified period of time.
It can be calculated as: -
Market share = Sales of business ×100
Sales of industry
Example:
A. 70% => 100m => RS 70m
B. 10% => 5000m => RS 500m
25
26. Market Share
Market share can reveal misleading results when a business (A)
with 70% market share is compared with a firm (B) with 10%
market share only, this is because a 70% market share might be
of a very small industry for example 100 million, on the other
hand a10% m share might be captured from a very huge
industry for example RS 5000 million, generating overall 500
million sales as compared to 70 million only.
Therefore, it does not assess the size of a business rather the
overall market size as well.
26
27. Small Businesses
Small businesses can be defined as / categorized according to the number of
staff employed, sales turnover per annum, and by amount of investment
made. These can also categorized as a microenterprises.
E.g. furniture manufacturer, small restaurant
27
28. Compete with large firms: - When new small business enters in
market the affect the existing large firms reducing their sales.
Specialist suppliers: - They become support for large by supply
them specialist goods.
Small businesses are often run by dynamic entrepreneurs:
ability/ willingness to test and try new markets, stepping into new
ventures, and taking a calculated risk.
Benefits of small businesses
Employment opportunities: - For all the skilled, unskilled,
permanent and temporary workers.
28
29. Limitation of small businesses
Limited product range (product portfolio)
Competition (price and marketing)
Suitable location
Problem in raising finances(short term and long term)
29
31. Small Business
Advantages
It is managed and controlled by the owner
It employs limited number of workers,
hence it is easier to know each worker closely
It is easier and possible to provide personal services to
customers
It can easily adapt to the changing customer needs
If it is family owned, then the business culture would be
informal and the workers would perform multiple roles
Disadvantages
They have limited access to the sources of finance
They are not able to afford to employ specialist managers and
there is a burden of responsibility on the owner
They may not be able to achieve economies of scale
They may not be diversified, hence there is a greater risk of
negative impact of any external change
31
32. Family Business
A family-owned business may be defined as any
business in which two or more family members
are involved and the majority of ownership or
control lies within a family.
32
33. Family Business
Strengths:
Knowledge continuity: Conveying experiences and skills to their future
generation
Commitment: Have devotion to make business grow, prosper and beneficial for
the next generation
Reliability and pride: Strive hard to make their product well-known in the
market by increasing quality and maintaining good relationship with their
stakeholders
33
34. Family Business
Weaknesses:
Informality: Informal attitude of the owners leads to inefficiencies and internal
conflicts
Traditional: No innovative practices due to reluctance in changing system and
procedures
Succession/continuity problem: Lack of ability and skills of descendants and splitting
of management responsibilities among several family members
Conflict: Family problems may appear on management of the business
34
35. Why Businesses Grow?
Why business want to grow?
To increase profits.
To increase revenues.
To increase market share.
To achieve economies of scale.
To enhance the reputation and credibility of businesses.
35
36. How can Businesses Grow?
Business Growth
Internally (Organic) Externally (integration)
- When a business increases
no. of shops
outlets,
factories, branches
Product range/ Product portfolio
- Very slow growth, because this is funded by
businesses own profits therefore, it is
comparatively slow
36