Liquidity is a measure of the availability of cash and cash equivalent funds while profitability is the measure of profit a company can earn by selling its products or services.
Both liquidity and profitability are related to the current assets and working capital of a company.
What are the four corporate level strategies
Types of Corporate Level Strategy – 4 Major Types: Stability Strategy, Expansion strategy, Retrenchment Strategy and Combination Strategy.
What is the key to become successful business
Understand the risks and rewards One of the top business keys to success is taking calculated risks.
Risks are part and parcel of running a business. They can help you make the right decision and become a better entrepreneur who can take their business to the next level.
How is market share defined
What Is Market Share? Market share is the percent of total sales in an industry generated by a particular company.
Market share is calculated by taking the company’s sales over the period and dividing it by the total sales of the industry over the same period.
What are the four types of strategy?
- Corporate level strategy
- Business level strategy
- Functional level strategy
- Operational level strategy
Why a strategy is important
Strategy help us define our business, gives it a set of values, and gives it purpose.
It helps us understand what success actually looks like. It provides a roadmap for our business, shows us our destination and identifies useful stopping points along the way.
What are 2 types of strategies?
- Business strategy
- Operational strategy
- Transformational strategy
What is the concept of value chain analysis
Value chain analysis is a means of evaluating each of the activities in a company’s value chain to understand where opportunities for improvement lie.
Conducting a value chain analysis prompts you to consider how each step adds or subtracts value from your final product or service.
What is an example of profitability
Profitability is measured with income and expenses. Income is money generated from the activities of the business.
For example, if crops and livestock are produced and sold, income is generated.
Can a company be liquid and not profitable
Answer and Explanation: Yes, a company can be profitable but not liquid because of accrual basis of accounting.
In case of accrued income, prepaid expense, credit sales etc , there can be shortage of liquidity.
How do you increase customer profitability?
- Develop a Deeper Understanding of Your Customers
- Know The Costs-to-Serve Component of Your Business
- Evolve Existing Customer Relationship Management (CRM) Systems
- Transforming Customer Profitability is an Evolving Journey
Can a company be liquid but not profitable
Both are measures to help business owners to assess and analyze their ability for growth and sustainment.
Having adequate or high liquidity does not mean a business is profitable – it simply means there are enough assets to sufficiently cover immediate and short-term expenses.
Do now teaching strategy
A ‘Do Now’ is a quick, independent or collaborative activity that typically involves no (or minimal) guidance from the teacher.
A ‘Do Now’ can be used to activate students learning for the lesson, surface prior knowledge, and familiarize students with lesson vocabulary.
What is the example of stability strategy
A very good example of stability strategy is when a company offers the same product/service to the customers without introducing any new product; it’s to maintain the current market share of the company.
Companies and businesses follow stability when they’re satisfied with the current market position and market share.
What are the 5 common goals of marketing?
- Building brand awareness
- Generating a high volume of qualified leads
- Establishing thought leadership
- Attributing marketing activities to revenue generation
- Increasing brand engagement
What are the three main types of corporate strategies
There are many corporate strategies examples but they can be condensed into three core approaches – growth, stability, and renewal.
What are the 5 primary activities of a value chain
The value chain framework is made up of five primary activities — inbound operations, operations, outbound logistics, marketing and sales, service — and four secondary activities — procurement and purchasing, human resource management, technological development and company infrastructure.
What is the main driver of the strategy of cost leadership
In business strategy, cost leadership is establishing a competitive advantage by having the lowest cost of operation in the industry.
Cost leadership is often driven by company efficiency, size, scale, scope and cumulative experience (learning curve).
What are the different types of corporate strategies?
- Stability strategy
- Expansion strategy
- Retrenchment strategy
- Combination strategy
- Diversification
- Forward or backward integration
- Horizontal integration
- Profit
Does marketing increase profit
Advertising reinforces those expectations, and achieving high levels of customer satisfaction consumes fewer resources.
These savings, combined with increased volume from higher market share and better productivity, result in higher profits.
What is the corporate strategy of Apple
Apple Inc. has initiated business-level strategies focusing on cost leadership and differentiation, which have made the firm a dominant force in almost all its lines of business, with products like Mac computers, iPhones, iPads, iTunes and App stores taking a big market share.
What are the different approaches to stability strategy
Stability strategy is a strategy in which the organization retains its present strategy at the corporate level and continues focusing on its present products and markets.
The firm stays with its current business and product markets; maintains the existing level of effort; and is satisfied with incremental growth.
How do you gain profit and avoid loss?
- Get organised
- Provide amazing customer service
- Implement effective marketing
- Invest in your staff
- Get the price right
What are two ways to increase profit
There are four key areas that can help drive profitability. These are reducing costs, increasing turnover, increasing productivity, and increasing efficiency.
You can also expand into new market sectors, or develop new products or services.
What are 3 ways a company can increase profits
There are 3 main ways to improve the profitability of your company: Sell more, price higher and reduce costs.
But profits can also be increased by greater cost efficiency.
What are the five ways to increase profits?
- Increase your prices
- Increase the number of customers
- Increase how often your customers make purchases
- Increase the amount that customers purchase
- Increase the efficiency of product/service creation
What is an example of a value chain
For example, McDonald’s mission is to provide customers with low-priced food items. The analysis helps McDonald’s identify areas for improvement and activities that add value to their products and services.
What are good profitability ratios
In general, businesses should aim for profit ratios between 10% and 20% while paying attention to their industry’s average.
Most industries usually consider ! 0% to be the average, whereas 20% is high, or above average.
What is the best profit ratio
But in general, a healthy profit margin for a small business tends to range anywhere between 7% to 10%.
Keep in mind, though, that certain businesses may see lower margins, such as retail or food-related companies.
That’s because they tend to have higher overhead costs.
What are the three main profitability ratios
Some common examples of profitability ratios are the various measures of profit margin, return on assets (ROA), and return on equity (ROE).
Others include return on invested capital (ROIC) and return on capital employed (ROCE).
Sources
https://erpminsights.com/4-tips-for-improving-customer-profitability/
https://www.aafp.org/pubs/fpm/issues/2001/1100/p39.html
https://ivypanda.com/essays/business-level-and-corporate-level-strategies-in-apple/
https://blog.hubspot.com/sales/value-chain-analysis
https://www.smartinsights.com/marketing-planning/marketing-models/how-to-use-the-7ps-marketing-mix/
