When individuals are interested in purchasing, investing or working with a company it may also be a good idea to assess it’s financial status, using public information available through government sources, two documents can allow proper assessment. A statement of comprehensive income and a statement of financial position. Statement of comprehensive income A statement of comprehensive income is a usually detailed report listing the inflows and outflows of capital of a business. They often include exceptional expenses and net profit for a business and subsequently can be difficult to follow but should provide a good understanding on how a business… Continue reading Assessing Company Value
Marketing is Anticipating, and satisfying, customers wants and needs, efficiency and profitability, Marketing includes Market Research The Marketing Mix What is the purpose of Marketing? To make profit, essentially by improving sales To remind the customer of your product through promotion To see what the customer wants by offering their product To link the product to the brand and create a brand association To communicate and offer competition to other businesses (to compete) There are two types of business orientations, Business to Business where businesses sell products to other businesses, such as tools, office equipment and building supplies. Business to Customer… Continue reading What actually is Marketing?
Kanban systems in business allows them to effectively manage their stock internally, essentially for businesses that require large amounts of stock, such as small parts, screws or trolley-based workstations, they will likely use a Kanban system to effectively manage their stock. A typical Kanban asset tag will have the item description, part number and sometimes will include the cost of the unit, should the business want to try to regulate the use of the item. What is the purpose of Kanban? A Kanban system ensures that employees always have access to the tools they need and JIT systems can be… Continue reading Kanban Systems in Lean Manufacture
Sales Forecasts are charts and graphs, equations and educated predictions that allow businesses to predict future sales with a degree of accuracy. Consumer Trends – People being proud of bargains and discounts. sales forecasts become harder to predict when consumerism changes. Economic Variables – Recessions, Booms and Recovery. Competitors Actions – loss leaders and pricing strategy may try to undercut you. Digital Music for example, as become harder to predict as people have found new ways to obtain it illegally. Fashion Items have an unpredictable life span. Businesses use a range of forecasting tools to make forecasts No single technique is… Continue reading Factors Affecting Sales Forecasts
What does Break-even calculate? Here is a Break-even chart. It represents a 24 day period. Break-even is when a business is not making any losses or profit, seen in the chart above at 11 days. It can be seen that the yellow total costs line, is the same angle as the variable costs line, plus fixed costs. It also can be determined, that the blue shaded are represents the magin of safety as after that all costs are paid. What is Margin of Safety? The margin of safety is how much additional units you have sold in a given period. For… Continue reading What is Break-even analysis useful for anyway?