regulations or legal requirements can also impact your sales if your product or business structure is affected.
Events
affect the national or global economy can sometimes have a positive impact on some businesses.
Season
time of the year can also impact your sales.
Employees
internal factors such as your employees also affect your sales forecast.
RatioAnalysis
compares two (2) numbers from a company's financial statements to show their relationship. In accounting, standards ratios are used to evaluate the financial health of a company or organization.
Financial Health Ratio
a financial metric that determines the company's capacity to pay its short-term and long-term obligations as they become due.
Stockholder'sRatio
show the firm's long term financial stability.
Total Equity/Total Assets
Stockholder's Ratio =
Costperunit×DesiredMarkup
Markup =
Costperunit×MarkupPrice
Selling Price =
Current Ratio
show's a company's ability yo pay short-term bills and debts. A higher current ratio indicates better solvency and liquidity.
Current Assets/Current Liabilities
Current Ratio =
Quick Ratio
measures a company's short-term liquidity and ability to meed obligations with liquid assets. A ratio below one (1) doesn't imply bankruptcy but could depend on inventory or other assets. A higher ratio indicates better liquidity, but too high may mean excessive cash reserves. It may also mean that the company has a high accounts receivable, indicating that it may be having problems collecting it's account receivables. Other term of Quick Ratio is Acid-Test Ratio.
Quick Assets/Current Liabilities
Quick Ratio =
Inbound logistics
raw materials handling and warehousing.
Operations
machining, assembling, and testing.
Outbound logistics
warehousing, and distribution of finished products.
Marketing and sales
advertising, promotion, and pricing channel relations.
Service
installation, repair, and parts.
Primary Activities
Inboundlogistics, Operations, Outboundlogistics, Marketing and sales, Service.
Firm infrastructure
general management, accounting, finance, and strategic planning.
Human resource management
recruiting, training, and development.
Technology development
research and development and product or process improvement.
Procurement
purchasing raw materials, machines, and supplies.
Secondary Activities
Firm infrastructure, Human resource management, Technology development, Procurement.
Recruiting
process of finding and attracting potential resources for filling up vacant position in an organization. It sources candidates with the abilities and attitudes required for achieving the organization's objectives.
Routing
when people are hired, their potential must be assessed regarding their ability to contribute to the organizations in various functions and responsibilities several years later. The more versatile a recruit is, the more opportunity the person has to assume multiple organizational roles.
Retaining
holding on to people, provided that a company wants to keep them in the first place. It may involve giving just wages, that could satisfy the minimum basic needs of employees. Beyond the minimum basic needs, people in the workplace also aspire to work-life balance.
Reviewing
measuring and evaluating their performance with the organizational goals in mind. Employees' potential can be measured through existing job requirements or prospective job promotions in this function.
Rewarding
compensating, giving incentives, and recognizing employees for their work, loyalty, and accomplishment, which can be monetary or non monetary.
Retooling
re-orienting employees to the new directions of the enterprise such as giving updates about the performance of an organization in a quarter or a year. This includes changing attitudes and behavior that do not help the organization's progress, creating a healthier corporate culture, and adopting more responsive approaches to superb customer service.
Recycling
allows employees to change jobs or even careers. Sometimes, people get bored with what they do daily or land a job unsuitable for their personality, competency, and temperament. It allows workers to reinvent themselves to choose whether to seek job alternatives inside or outside the organization.