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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
Recommend marketing strategies to address the business problems identified in the hypothetical situation
Answer
To improve the product mix and appeal to a broader customer base, it is essential to review the current offerings and conduct market research to identify customer preferences. Implementing a targeted marketing campaign can highlight the strengths of the products that do appeal to customers.
Additionally, consider introducing promotional discounts or bundled offers to attract more customers. Leveraging social media and digital marketing can also help in reaching a larger audience.
Collaboration with local businesses and participation in community events can enhance brand visibility and foster customer loyalty.
Step 2
Recommend financial management strategies to address the business problems identified in the hypothetical situation
Answer
Strengthening cash flow management is crucial for Kingland Office Supplies. Implementing a cash flow forecasting system will help anticipate fluctuations and manage expenses more effectively.
To improve accounts receivable turnover, the business should review its credit policies. Offering incentives for early payments and regularly following up on outstanding invoices can enhance cash flow as well.
Additionally, conducting a thorough analysis of operational costs will identify areas for potential savings, allowing the business to operate more efficiently and increase profitability.