Discuss the relationship between a businesss level of operations and it market share goals in terms of the macroenvironment Illustrate with the help of examples?

Answer 1

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discuss the relationship between a business's level of operations and it market share goals in terms of the macro environment. illustrate with the help of examples?

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Answer

RENUKA,

HERE IS SOME USEFUL MATERIAL.

REGARDS

LEO LINGHAM

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THE COMPANY ARRIVES AT THE FOLLOWING

DECISIONS AT THE END OF THE SESSIONS:

1.MARKET SHARE % GOAL/ OBJECTIVE.

2.SALES FORECAST / TARGET

3.REVENUE BUDGET

4.GROSS PROFIT BUDGET.

5.NET PROFIT BUDGET.

6.SALES TOTAL FORECAST.

7.SALES BY PRODUCTS.

8.OPERATIONAL EXPENSES BUDGET.

9.FIXED EXPENSES BUDGET.

10.PRODUCTIVITY IMPROVEMENT %

11.PROFITABILITY INCREMENT %

12. RETURN ON INVESTMENT.

THIS IS HOW a business's level of operations and it market share goals is linked to the macro environment. The strategic business level operations are the operations which are used to maintain the economic position of the business in long term. The relationship of strategic business level operations with market share is direct.

For example, a company tries to introduce a new product for increasing business it is the strategic business level operation. If this try succeeds, i mean the company succeed to increase its business due to its success in this product and face loss, the market share would be affected and its value would be increased. Well dear!

The strategic business level operations are those operations which the business carry out to maintain its position as an economic viability in the long term. It has the direct relationship with the market share of a company from one perspective. For example, if a company wants to diversify its business and want to introduce a new product in the market then it would be a strategic operation of the company and if the product fails then the company can have financial loss and market shares of the company will be affected and vice versa.

strategic business level operations Market share refers to that portion of the total market that is controlled by a particular entity. E.g. If Acme Corporation manufactures a product X in the Chemicals market. There are ten other companies making ten other products. The total sales of all these products put together are $ 100 million. The sales of X are $ 10 million, then it is said that Acme Corporation has 10 percent market share.

But real world business is not as simple as this; market share could also refer to the sales in a particular geographic area. It could also refer to a particular distribution channel. E.g. market share in the original equipment manufacture channel. In most markets companies will have more than one product. In such cases market share will be denoted in terms of target segments. E.g. high-end segment, middle segment, lower end segment etc. Companies are constantly thinking of ways to increase their share in the market.