Cost of Revenue: What It Is, Calculation, Example
What is Cost of Revenue? The term “cost of revenue” encompasses all expenses associated with producing and delivering a product or service to consumers. This crucial financial data is typically disclosed in a company’s income statement, aiming to represent the direct expenditures linked to the goods and services provided by the company. The service industry […]
Brick-and-Mortar Stores: Types, Pros and Cons
In the age of e-commerce and online shopping, the idea of visiting a physical brick-and-mortar store might seem like a novelty. However, these tangible establishments remain a vital part of the retail landscape in Australia and around the world. We’ll look over the general definition of a brick-and-mortar store, its various types, accounting methods and […]
Margin and Margin Trading: What They Are, Pros and Cons
What is Margin? In finance, margin pertains to the collateral that an investor must deposit with their broker or exchange to alleviate the credit risk linked to the investor’s activities. These activities may include borrowing cash from the broker to purchase financial instruments, borrowing financial instruments for short selling, or entering into derivative contracts. Buying […]
Strategic Management: What It Is, How It Works
What is Strategic Management? Strategic management involves the intentional alignment and orchestration of an organisation’s assets and capabilities with the aim of achieving its predetermined goals and objectives. It encompasses various key elements, including goal setting, competitive analysis, internal assessment, strategy evaluation, and the effective implementation of strategies throughout the organisation. Key points: How Strategic […]
Mobile Marketing: What It Is, How It Works
What is Mobile Marketing? Mobile marketing encompasses promotional activities targeting products and services via mobile devices like tablets and smartphones. Leveraging modern mobile technologies, including location services, it tailors marketing efforts to an individual’s whereabouts. It represents a technological avenue for delivering personalised promotions to users consistently connected to networks. Key points: Understanding Mobile Marketing […]
Selling, General, and Administrative Expenses (SG&A)
Explore Selling, General, and Administrative Expenses (SG&A) to understand, calculate, report, differentiate, and master expense management for growth with real-world examples. When it comes to financial management, understanding and effectively managing expenses is significant for businesses seeking sustainable growth. One of its key components is Selling, General, and Administrative Expenses (SG&A). We will dissect the […]
Cost of Goods Sold (COGS): What It Is, Formula, Calculation
What is Cost of Goods Sold (COGS)? Cost of goods sold (COGS) signifies the direct expenses incurred in manufacturing the goods that a company sells. This encompasses the costs of materials and labour directly utilised in the production process. Notably, it does not include indirect expenditures like distribution and sales force costs. COGS is alternatively […]
Market Segmentation: What It Is, Types, Benefits
What is Market Segmentation? Market segmentation involves categorising potential buyers into distinct groups or segments based on factors like demographics, geography, behaviour, or psychographics. This facilitates a deeper understanding of these groups for more effective marketing strategies. Key points: How Market Segmentation Works Companies often employ three criteria to distinguish various market segments: For instance, […]
Target Market: What It Is, Purpose, Example
What is a Target Market? A target market comprises individuals who possess common characteristics such as age, income, and lifestyle, making them the most probable customers for a product. Identifying this group is important in the decision-making process for designing, packaging, and advertising a product. Key points: Identifying the Target Market for My Product Part […]
Restructuring: What It Is, Process
What is Restructuring? Restructuring is an action implemented by a company to bring about substantial modifications in its financial and operational aspects, usually in response to financial challenges. It is a form of corporate action aimed at making significant alterations to a company’s debt, operations, or structure to mitigate financial harm and enhance overall business […]
Crisis Management: What It Is, How It Works
What is Crisis Management? Crisis management is recognising a potential threat to an organisation and its stakeholders and implementing a proactive strategy to address it effectively. Key points: How Crisis Management Works Given the unpredictability of global occurrences, many businesses try to identify potential crises in advance, aiming to devise strategies for handling them. Should […]
Contingency and Contingency Plan: What They Are, How They Work
What is a Contingency? A contingency refers to the potential occurrence of adverse events in the future, such as economic recessions, natural disasters, fraudulent activities, terrorist attacks, or pandemics. In 2020, businesses were impacted by the coronavirus pandemic, compelling many employees to shift to remote work. Consequently, companies had to formulate and implement remote work […]
