Traffic Clothing PLC 1) Internal growth is defined as the development of a business through using its own finances and retained profits. Whereas external growth is a business’s growth through acquiring other businesses. In Traffic Clothing PLC’s external growth strategy was through aggressive takeovers of either other clothing producers or material suppliers. While their internal growth strategy was through creating low cost factories in developing nations. 2) Sales revenue is defined as the
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at maximization it sales revenue (price x quantity0 rather than its profit. Hence his hypothesis has come to be known as sales maximization theory & revenue maximization theory. According to baumol‚ sales have become an end by themselves and accordingly sales maximization has become the ultimate objective of the firm. Hence‚ the management of a firm directs its energies in promoting and maximizing its sales revenue instead of profit. The goal of sales maximization is explained by the management’s
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power Inventec has a high bargaining power due to the limited list of customers. This disadvantage greatly weaken the ability to switch customers and negotiation power. Inventec has to accept client’s aggressive pricing strategies with a low profit margin or else facing client switching their business to competitors in a short period of time. Q2 What are the drivers of the average profitability of the ODM industry? The average profitability of the ODM industry is low which only ranging
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website‚ what service(s) does it provide? (3 marks) It’s a serious business social networking website. It provide resume-posting by more than 100 million professionals and corporate types. 2. What was LinkedIn’s Net profit Margin in 2010? (1 mark) $243-million revenue‚ profit: $15.4-million 3. Why are their concerns about the future potential growth in the number of LinkedIn user? (3) -The company acknowledges that the number of its registered members is higher than the number of actual
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50% forecast errors‚ and the new item ratio was between 0.7 and 1.6 in last year‚ if the frozen forecast for an item were 1000 units‚ so the actual demand for that item would be between 700 and 1600 units. The last thing is the calculation of profit margin. For instance‚ an item cost $15‚ and sells for $30‚ and the gain of selling would be $30-15=$15. If the liquidation is sold for $10‚ so the loss
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The Consumer Packaged Goods (CPG) Industry and Solution Providers By Jay R. Jeffreys‚ PE; Director‚ Wonderware Solution Provider Programs Table of Contents 1. The CPG Industry ................................................................................................................................... 3 2. Industry Comparisons ........................................................................................................................... 4 3. What CPG Companies Need from Solution
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US $ 250 million out of the overall income of US $ 3.2 billion a year. This is just about 7.8 % of the total income‚ but the margins in this business were much larger. The business of the spare parts was demand driven. The market situation worsened when liberalization attracted competitors like Toyota‚ Audi etc. This made GM tighten their costs further on the low profit margin‚ small car segment. Also the service parts business has serious strategic implications for the new car business because it
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makes it difficult to implement its business strategy to vastly differentiated local market conditions. Also‚ the financial performance of IKEA is greatly vulnerable to the changes of prices of raw materials due to the company strategy of low profit margin for each individual product. IKEA has opportunities for increasing revenues and achieving long-term growth. Such opportunities include increasing the focus on using recycled materials‚ engaging in further market expansion and entering Indian
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has been highly profitable‚ but low on volume. The business of the spare parts was demand driven. The market situation worsened when liberalization attracted competitors like Toyota‚ Audi etc. This made GM tighten their costs further on the low profit margin‚ small car segment. Also the service parts business has serious strategic implications for the new car business because it can affect the level of serviceability (measured in time‚ speed‚ price‚ and dependability) of the car during its economic
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restaurants. Fast food restaurants consist of snack bars‚ cafeterias‚ buffets and restaurants where customers pay for food before it is consumed. There are over 300‚000 outlets in this segment generating around $184 billion in revenues with a profit margin of 3.5%. This type of restaurant is likely used throughout the USA due to our fast paced lifestyles. It is the easiest way to get a
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