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Sportyz Goodz Ltd is a retailer that has been operating for the past 20 years in Australia - HSC - SSCE Business Studies - Question 25 - 2017 - Paper 1
Question 25
Sportyz Goodz Ltd is a retailer that has been operating for the past 20 years in Australia. The directors have provided the following information: - In 2013 the bus... show full transcript
Worked Solution & Example Answer:Sportyz Goodz Ltd is a retailer that has been operating for the past 20 years in Australia - HSC - SSCE Business Studies - Question 25 - 2017 - Paper 1
Step 1
Outline ONE strategic role of financial management
Answer
One strategic role of financial management is to ensure that the business maintains a strong financial position, allowing it to achieve its objectives and support its growth initiatives. This includes managing the company’s liquidity to meet operational needs while also ensuring there are sufficient resources to invest in new opportunities and mitigate risks associated with market competition.
Step 2
Recommend TWO strategies to improve financial performance
Answer
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Cost Reduction Strategies: By analyzing operational costs, Sportyz Goodz can identify areas where expenses can be reduced without sacrificing quality. Implementing processes such as lean management can drive down costs and improve profitability.
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Diversification of Product Range: Expanding the product range to include new and trending items can attract a broader customer base. This strategy can boost sales and ultimately enhance financial performance by reaching different demographics and responding to market demand.
Step 3
Explain the importance of monitoring and controlling the business's marketing strategy
Answer
Monitoring and controlling the business's marketing strategy is crucial as it ensures that all marketing efforts align with the overall business objectives. Regular assessments help identify which strategies yield the best results, allowing for adjustments to be made in response to market dynamics and competition. This proactive approach can prevent financial losses and enhance the brand's positioning in the market.