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Kingland Office Supplies operates in a large NSW city in a highly competitive market - HSC - SSCE Business Studies - Question 26 - 2013 - Paper 1
Question 26
Kingland Office Supplies operates in a large NSW city in a highly competitive market. A paid manager is responsible for the day-to-day running of the business. The ... show full transcript
Worked Solution & Example Answer:Kingland Office Supplies operates in a large NSW city in a highly competitive market - HSC - SSCE Business Studies - Question 26 - 2013 - Paper 1
Step 1
Provide reasons in favour of marketing strategies to address the business problems identified in the hypothetical situation
Answer
Introduction
To improve the profitability of Kingland Office Supplies, it's essential to address the underlying marketing issues that have contributed to the low performance.
Product Mix Enhancement
To tackle the problem of an unappealing product mix, the company should conduct market research to understand customer preferences. By identifying the most demanded products, marketing efforts can be directed towards promoting these offerings. Adjusting the product mix to include higher-margin items can also increase profitability.
Targeted Promotions
Implementing targeted advertising strategies focusing on the unique selling propositions (USPs) of the products can attract more customers. Utilizing social media and email marketing can help reach the desired audience efficiently.
Customer Engagement
Encouraging customer feedback through surveys or focus groups can provide insights into product dissatisfaction. Developing a customer loyalty program can enhance retention and increase sales from existing customers.
Conclusion
These marketing strategies can help Kingland Office Supplies align its offerings with customer expectations, thereby increasing sales and improving overall profitability.
Step 2
Provide reasons in favour of financial management strategies to address the business problems identified in the hypothetical situation
Answer
Cash Flow Management
To improve the poor management of cash flow, it is crucial to implement a cash flow forecasting system. Regular monitoring of cash flow can help avoid shortfalls and ensure that the business meets its financial obligations.
Accounts Receivable Management
Improving the accounts receivable turnover involves establishing clear credit policies. Setting credit limits and timelines for payments can help collect receivables efficiently. Additionally, offering discounts for early payments could motivate customers to pay promptly.
Cost Control
Conducting a thorough analysis of operational costs will identify areas where expenses can be reduced. Implementing a budget tracking system can facilitate financial control and adherence to the budget.
Conclusion
Adopting these financial management strategies can enhance the financial health of Kingland Office Supplies, enabling the business to focus on growth and sustainability.