Financial Analysis

Financial Analysis

Question & Answers

There are different financial analysis question that need to be answered in order to find out that what the impact will be of marketing, channel distribution and different scenarios mentioned in the questions on the financial health of the business. The answer will enable us to understand strategies that need to be developed in different situations faced by a firm. The answers of the questions are as following:

Organizations after producing the products need to provide it to the final consumers. There are different ways and methods analyzed by the manufacturers in order to find out the best possible method according to the nature of the product. Manufacturers before deciding which method to choose need to consider several factors like cost involved in a distribution network, nature of the product whether a small or a large network is needed, market where the product is distributed and etc. These are some of the key factors that help the decision makers in finding out whether a distribution network should be small or large. There are different distribution channels that can be considered for transporting finished goods to the final consumer. Among these distribution channels there is a network producers directly sells its products to the final consumer, and then there is a network that involves wholesaler who directly sells to the customers, in the network of wholesaler and the producer sometimes retailers are also included in order to sell small quantity of the bulk bought by the wholesalers. There are further additions into these distribution channels like brokers and agents are added in case of exporting and importing activities carried on by the firms. The producers need to decide which distribution channel they need to adopt by keeping in my the nature of the products for example dairy products producing firm make sure that a small distribution channel is adopted so that the customers are able to get fresh products as soon as possible. Products like clothes, shoes and etc. are sold through smaller retailers because the producers need retail outlets where there product can be displayed and is sold in small quantities. There are wholesalers who are now there outlets in the form of big supermarkets and hyper star where consumers are offered a vast range of products and availability of goods at a discount or lower price than in the market. This distribution channel is often followed by the producers of grocery store items where the availability of all the items under one roof save their time and cost. All the intermediaries like wholesalers, retailers, brokers and agents included in the distribution channel increases the cost of the product when it finally reaches to the end user. Yes I agree to the fact that all the intermediaries sell the product by keeping a share in the profit which increases the cost of the product. The cost at which the product was produced at every stage of the distribution channel cost bear by the retailers, wholesalers and other intermediaries ...