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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 company's financial resources are effectively allocated to meet its strategic objectives and enhance shareholder value. This includes planning, organizing, directing, and controlling financial activities such as procurement and utilization of funds. A strong financial management approach allows Sportyz Goodz Ltd to respond proactively to market competition and invest in opportunities that can improve their product positioning and market share.
Step 2
Recommend TWO strategies to improve financial performance
Answer
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Cost Reduction Strategies: Sportyz Goodz Ltd can implement cost reduction strategies to enhance their profit margin. This might involve identifying areas of operational inefficiencies or exploring bulk purchasing options to lower variable costs. By reducing costs, the business can improve profitability even if sales volume remains relatively constant.
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Diversification of Product Offerings: The company can consider diversifying its product offerings to attract a broader customer base. By introducing new products or variations of existing products, Sportyz Goodz can cater to different consumer preferences and potentially increase sales revenue.
Step 3
Explain the importance of monitoring and controlling the business’s marketing strategy
Answer
Monitoring and controlling the marketing strategy is crucial for Sportyz Goodz as it ensures that the marketing efforts are aligned with the company's goals and objectives. By consistently evaluating performance metrics such as sales data, market share, and customer feedback, the company can adapt its marketing strategy in response to market changes and consumer preferences. This proactive approach helps to maximize the effectiveness of marketing initiatives, optimize resource allocation, and ultimately enhance the overall profitability of the business.