Monday, January 10, 2011

Growths of Business'


Growth:
1.     No+ range of products
2.     Sales is not equal to market share
3.     Profit is not equal to cash and profitability
4.     No of employees
5.     Volume of assets

(2) Market share of Nivea

Sales of nivea
---
Sales of nivea + Sales of all other COMPETING brands of the same product   

Profitability:

-       profits/sales
-       profits/assets
-       profits/ capital employed (how much capital you used in the business)




TL value = expenses -–-inputs --- throughput --- output --- TL value= revenues
Revenue does not equal to cash inflow
Expenses does not equal to cash outflow







Organic growth- growing internally generated resources

Market penetration- deepening the market by selling more to the market 

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