In B2B, for businesses to save money and time, they work very hard to streamline the process and also ensure their purchase is based on logic and not personal emotions. As a marketer, to develop your B2B sales strategies you have to understand the organizational buyer, how they operate,
For high-cost IT projects, it is important to focuse on the areas of the company that needs more work. According to Pearlson (2012), “Financial measures may be the language of stockholders, but managers understand that they can be misleading if used as the sole means of making management decisions” (p. 218). So the company can use additional IT metrics to monitor and analyze IT investment such as scorecards, end-user surveys, response time and logs of communication up/down time. 5. Consult with Microsoft for an IT tools that could be used to ensure remote employees stay connected or productive.
INVENTORY Inventory is account for a considerable part of total asset, so inventory management plays an important role in business survival. This management include manage inventory level to ensure producing process run smoothly and is not interrupted by material shortage as well as decrease inventory cost such as warehouse rent, administrative cost, salary, order cost, opportunity cost and insurance to minimum level. On the one hand, If firm set too low inventory level, this will make producing stagnate and cannot fulfil orders when demand increasing. Moreover, firm may not deliver products for customers on time, this could affect firm's reputation and relationship with important customers, firm even compensates for breaking contract commitments.
The situation becomes very critical when the entity shows a poor financial performance or when a company required a huge amount of loan for business activities. For this lenders required an assurance that their investment is safe, so the loan will be secured by an asset by pledging it as a collateral. If the entity is unable to pay the lenders on time that collateral will be used to recover the amount. Kaplan-urwitz model is developed to generate a credit score, which incorporates entity size, profitability, type of debt, gearing ratios interest cover and level of risks are entered in a formulae to determine the credit rating of a company. E.g.
Remember that proper pricing is critical to your business’ success. Make your clients feel that your service offerings are in line with their wants and needs so they will feel confident and choose to invest in your services. How Much to Charge After evaluating these pricing models, you will eventually asked the question, “How much am I going to charge for these managed services?”. As an MSP business owner you should do your homework and not just only rely on the competitors per-user or monthly per-device rates. Apparently, profits await but net losses as well if you are not prepared and did not do your homework on these various pricing models.
Management will be able to distinguish between profitable and non-profitable activities. To maximize profits, management will opt to concentrate on profitable operations and obliterate non-profitable ones. Channelling production in the right line is a good example in the decision-making process of a firm. Furthermore, costing can be useful in periods of recession and competition for decision-making. During trade downturns, businesses cannot afford to have leakages which pass unchecked.
Answer 1) Strategically, what must Pan-Europa do to keep from becoming the victim of a hostile takeover? Considering the current financially bearish trend in Pan Europa, the entity needs to work on multiple yet chain corporate activities to avoid hostile takeover. Below are some strategies, which can be used by the company: i) To begin with, the company must channelize its investment in those projects that will assist the growth in the revenue figures and net income. It is also important for the company not take any additional debt and accept projects within their capital budget as the banks have already signaled red warning for unsustainable debt-equity position of the company. Analyzing the past performance of the company, we found that
Entrepreneurs are willing to face high risk and are willing to make quick decisions and decisions with less information when needed. Entrepreneurs know that the chance of their adventure is a big success. Business owners must know when to seek loans, when to expand, and when to brave a steady salary, is conducive to self-employment, and how to determine the potential benefits of adventure. They must balance and over-risk may damage the business and its owners ' credit, financial and personal life. For example, the opening of a second store, other business owners dare to open, you can use a loyal customer base to repay.
In the raging markets of today’s economy, innovation is considered to be a tonic for the survival of all sized businesses. The growth and survival of firms are directly linked to their ability of continuous innovation. The above literature also proves the importance of SMEs on the overall economic growth Bowen and Ricketts, 1992; Henderson, 2002). SMEs are the most evaluated firms under the radar of growth by innovation. (Oke, Burke and Myers, 2007) suggests that one of the major reason for SMEs to come into existence is the development of radical innovation.
Ratio analysis reveals the strength & weakness of a firm in this respect. The leverage ratios, for instance, will indicate whether a firm has a reasonable proportion of various sources of finance or if it is heavily loaded with debt in which case its solvency is exposed to serious strain. Similarly the various profitability ratios would reveal whether or not the firm is able to offer adequate return to its owners consistent with the risk involved. 3) OVERALL PROFITABILITY Unlike the outsides parties, which are interested in one aspect of the financial position of a firm, the management is constantly concerned about overall profitability of the enterprise. That is they are concerned about the ability of the firm to meets its short term as well as long term obligations to its creditors, to ensure a reasonable return to its owners & secure optimum utilization of the assets of the firm.