Strategic Profit Model Elements Quiz
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Questions and Answers

What is the primary focus of the Profit component in retail decision-making?

  • Brand development and marketing
  • Managing customer relations
  • Asset management and financial performance (correct)
  • Strategic employee training

    • Which of the following is NOT a component of strategic planning mentioned in the text?

  • Identification of strengths and weaknesses
  • Analysis of competitor strategies (correct)
  • Definition of specific goals
  • Development of a mission statement

    • What should a mission statement describe according to the text?

  • Historical performance of the enterprise
  • Employee salaries and benefits
  • Fundamental nature of the enterprise (correct)
  • Sales projections for the upcoming year

    • What is the main purpose of identifying and analyzing a retailer's strengths, weaknesses, opportunities, and threats?

    <p>To develop appropriate strategies</p> Signup and view all the answers

    What three elements are essential for a good mission statement based on the text?

    <p>Resource utilization, environmental engagement, and consumer value</p> Signup and view all the answers

    Which component of strategic planning emphasizes adapting resources to the changing retail environment?

    <p>Mission statement development</p> Signup and view all the answers

    What does the Net Profit Margin indicate?

    <p>How much profit a retailer makes on each dollar of sales after all expenses and taxes.</p> Signup and view all the answers

    How is Assets Turnover calculated in the Strategic Profit Model?

    <p>By dividing annual net sales by total assets.</p> Signup and view all the answers

    What does the Return on Assets (ROA) represent in the Strategic Profit Model?

    <p>Annual net profit divided by total assets.</p> Signup and view all the answers

    How is Financial Leverage calculated in the Strategic Profit Model?

    <p>Dividing total assets by net worth.</p> Signup and view all the answers

    What does Return on Net Worth (RONW) indicate?

    <p>Net profit divided by net worth.</p> Signup and view all the answers

    Which ratio in the Strategic Profit Model shows how productively the retailer's assets are being used?

    <p>Assets Turnover</p> Signup and view all the answers

    What is the percentage of net sales for the fixed operating expenses in the Subway BEP equation?

    <p>50%</p> Signup and view all the answers

    What is the minimum order value for the manufacturer to promise seven-day delivery?

    <p>$5,000</p> Signup and view all the answers

    What is the increase in sales required for a franchise to make the same profit as before?

    <p>75%</p> Signup and view all the answers

    What is the focus of the entrepreneur's online business?

    <p>Private label apparel</p> Signup and view all the answers

    What is the net sales value required for Subway to make a profit of $25,000?

    <p>$435,897</p> Signup and view all the answers

    What is the target market for the entrepreneur's online business?

    <p>Generation Y consumers</p> Signup and view all the answers

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