Market Profitability Analysis and Key Success Factors
Market Profitability Analysis
According to Porter (1985), the attractiveness of a market or an industry is measured by the long-term return on investment of the average firm. This in turn depends on five factors that influence profitability:
- the intensity of competition
- the existence of potential competitors who will enter if profits are high
- substitute products that will attract customers if prices become high
- the bargaining power of customers and suppliers
Competitors: The intensity of competition from
Read MoreAccounting 3
1. Gaw Company owns 15% of the common stock of Trace Corporation And used the fair-value method to account for this invesment. Trace reported Net income of $110,000 for 2018 and paid dividends of $60,000 on October 1, 2018. How much income should Gaw recognize on this investment in 2018?
B) $ 9,000
2. Yaro Company owns 30% of the common stock of Dew Co. And uses The equity method to account for the investment. During 2018, Dew reported Income of $250,000 and paid dividends of $80,000. There is
Read MoreFinancial Statements and Budgeting Methods
Ch 1
Accounting equation (Ch 1):
The balance sheet shows the relationship between assets, liabilities, and stockholder’s equity at a particular date. In equation form, Assets = Liabilities + Stockholder’s Equity. This is referred to as the basic accounting equation.
Financial statements (Ch 1) Format/Content (which accounts belong on each financial statement):
Four types of financial statements:
Income Statement:
Summarizes all revenue and expenses for period (month, quarter, or year). If revenues
Read MoreIntegrated Marketing Communications: Strategies and Tools
Communication in Marketing
The transmission of messages to influence attitudes and behavior. The sender (the company, the organization, the brand) sends messages to reach the receivers (usually consumers, other organizations, etc.) with different purposes: Inform, change the behavior and build stable relationships.
Promotion Mix
The specific blend of promotion tools that the company uses to persuasively communicate customer value and build customer relationships. Integrated marketing communications
Read MoreConcept of education
1-WHAT IS LOGISTICS is the time related positioning of resources or, the strategic management of the total supply-chain.
The supply-chain is a sequence of events intended to satisfy a customer. It can include procurement, manufacture, distribution and waste disposal, together with associated transport, storage and information technology. Logistics is the function that is responsible for movement of goods and products. It is responsible for the transport and storage of materials on their journey between
Read MoreDo Measures of Financial Constraints Accurately Identify Constrained Firms?
Do Measures of Financial Constraints Measure Financial Constraints?
Farre-Mensa, Ljungqvist 2014
How financial constraints affect firm behavior is central in finance study, but we have relied on indirect proxies or on some popular indices. This paper finds these measures do not well identify firms that are constrained.
Two definitions prevalent in the literature:
1) the more inelastic the supply of capital, the more costly the firm finds it to raise additional external capital (on Stiglizt and Weiss,
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