18 Questions
What is the primary focus of the Profit component in retail decision-making?
Asset management and financial performance
Which of the following is NOT a component of strategic planning mentioned in the text?
Analysis of competitor strategies
What should a mission statement describe according to the text?
Fundamental nature of the enterprise
What is the main purpose of identifying and analyzing a retailer's strengths, weaknesses, opportunities, and threats?
To develop appropriate strategies
What three elements are essential for a good mission statement based on the text?
Resource utilization, environmental engagement, and consumer value
Which component of strategic planning emphasizes adapting resources to the changing retail environment?
Mission statement development
What does the Net Profit Margin indicate?
How much profit a retailer makes on each dollar of sales after all expenses and taxes.
How is Assets Turnover calculated in the Strategic Profit Model?
By dividing annual net sales by total assets.
What does the Return on Assets (ROA) represent in the Strategic Profit Model?
Annual net profit divided by total assets.
How is Financial Leverage calculated in the Strategic Profit Model?
Dividing total assets by net worth.
What does Return on Net Worth (RONW) indicate?
Net profit divided by net worth.
Which ratio in the Strategic Profit Model shows how productively the retailer's assets are being used?
Assets Turnover
What is the percentage of net sales for the fixed operating expenses in the Subway BEP equation?
50%
What is the minimum order value for the manufacturer to promise seven-day delivery?
$5,000
What is the increase in sales required for a franchise to make the same profit as before?
75%
What is the focus of the entrepreneur's online business?
Private label apparel
What is the net sales value required for Subway to make a profit of $25,000?
$435,897
What is the target market for the entrepreneur's online business?
Generation Y consumers
Test your knowledge on the 5 elements of the Strategic Profit Model which includes Net profit margin and Assets turnover. Learn about how these elements help assess a firm's profitability and monetary return.
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