Answer:
The correct answer is option D.
Explanation:
Money can be defined as any asset that is generally accepted by people in exchange for goods and services. The basic function of money is to act as a medium of exchange.
It reduces the transaction cost in exchange for goods and services by eliminating the double coincidence of wants.
Money can be of different types such as commodity money, fiat money, etc.
Other functions of money are to act as a store of value and unit of account.
Which of the following is more like a product layout as compared to a process layout?
A.Products cannot be easily added or deleted from the existing product line.
B.Facilities are less capital intensive.
C.Scheduling resources is less challenging.
D.Resources used are general purpose.
E.Space requirements for inventory storage are higher.
Answer:A
Explanation:Explanation:product can easily be added or deleted from a product line as compared to process line/layout because process lines has important identities/components that explains the process line but product lines identities or components can be bypassed to achieve the aim
Bob applies for an insurance policy and, because of his medical history, is required to submit an attending physician's statement. He receives the evaluation, and the report is submitted. The underwriting department still has further questions but is unable to get further information from the physician. What will the insurer most likely do?
Answer:
The insurance company will not issue Bob a policy until all their questions have been answered. No company will issue a policy unless they are certain about the health condition of the insured individual.
Since the first physician was not able to answer all the insurer's questions, they will probably request Bob a second visit to another physician without any cost for Bob. The company should pay for this second opinion.
Sayyid's company has launched a new product line, and he is put in charge of sales. He decides his first step will be to find potential customers in the company's sales records. Sayyid is:
a.prospecting.
b.screening.
c.researching.
d.pre-approaching.
e.surveying.
Answer:
Letter a is correct. Prospecting.
Explanation:
Customer prospecting is based on a structured process of searching for potential customers to consume new products or services.
This strategy is essential for any company that wants to expand in the market and achieve good profitability. It is important for professionals to implement customer prospecting techniques that are suited to the organizational purpose, each means for customer prospecting must be used in a way that communication is effective for the business, the company can use the digital medium to prospect clients, referrals. , its own client portfolio and various other media.
a.To maximize its profits, the firm should produce units and charge a price of _______$ .
b. At the profit-maximizing level of output, average total cost per unit is_________$ .
c. At its profit-maximizing level, profits are_________$ .
The questions belong to business or managerial economics and discuss profit maximization. The profit-maximizing level of output and price occurs when marginal cost equals marginal revenue. Profits are calculated as total revenue minus total costs, with total costs being average total costs times units produced.
Explanation:The questions asked here relate to profit maximization - a fundamental concept in business or managerial economics. To answer these, one would need the specifics of the firm's cost and demand functions or the corresponding graphs.
a. The firm should produce units and set its price where marginal cost equals marginal revenue (MC=MR). This is the profit-maximizing level of output.
b. At the profit-maximizing level of output, the average total cost (ATC) would be at its minimum. ATC is the firm's total costs divided by the quantity of output.
c. At its profit-maximizing level, profits are the difference between total revenue (units sold * unit price) and total costs (units produced * ATC).
Learn more about Profit Maximization here:https://brainly.com/question/33809682
#SPJ12
Suppose? that, in the United? States, the inflation rate is at 3.2 percent? (the target inflation rate is 2? percent). Rapidly rising prices and low interest rates have spurred business to hire more workers and invest in new facilities.
Which of the following is likely to be true of the U.S. economy if there is a rapid rise in prices and low interest? rates?
A. There could be an appreciation of the U.S.? dollar, resulting in a lower output gap in the U.S. economy.
B. The U.S. economy could experience an increase in gross domestic? product, eventually resulting in an economic boom.
C. The U.S. economy could experience unsustainable? expansion, resulting in a sharp economic downturn.
Answer:
The correct answer is C. The U.S. economy could experience unsustainable? expansion, resulting in a sharp economic downturn.
Explanation:
Unsustainable economic growth is a theoretical economic situation proposed by Jagdish Bhagwati in 1958, where economic growth can become so counterproductive as to leave a country in worse conditions than before.
If growth is based solely on exports, these could lead to a fall in the terms of trade of the exporting nation. In rare circumstances, this fall could be even greater than the gains generated by the growth, worsening the country's situation. This result is viable only if the growing country influences international market prices.
Of the following, which is a valuation method used in the market approach to measure the value of a business? a. Price-to-ticket revenue ratio b. Price-to-revenue ratio c. Price-to-earnings ratio d. Equity shares sold e. All of the above
Answer:
The correct answer is (E)
Explanation:
There are various methods which are used to measure the value of a business. Price to ticket ratio, price to revenue ration, P/E and equity share sold are the financial evaluation techniques used by financial mangers and analyst to examine the value of a business. All the above techniques consists of revenues and cost estimations and are used to evaluate the financial performance and strength of businesses.
In the financial statement audit of a nonpublic company, the auditor decides to perform tests of the controls related to the occurrence of sales transactions. Which of the following best explains why the auditor decided to test these controls?(1) In a nonissuer financial statement audit, the auditor is required to test the operating effectiveness of internal controls.(2) The auditor wants to obtain an understanding of the design of the internal controls.(3) Control risk is assessed at below the maximum.(4) The auditor wants to obtain an understanding of the implementation of the internal controls.
Answer:
3) Control risk is assessed at below the maximum.
Explanation:
When the control risks are assessed at below the maximum it means that the controls are effective regarding the prevention and detection of misstatements in the financial statements.
So if the auditor wants to test the controls, it means that he/she wants to verify the operating effectiveness of the controls.
In other words, apparently the controls show that there are no misstatements regarding the sales transactions, so the auditor wants to check how efficient the controls are.
A competitive environment where there is weak to moderate rivalry amongsellers, high entry barriers, weak compeittion fom subsitite products, and little bargaining leverage on the part of both suppliers and customers___________
Answer: is conducive to market organisations earning attractive profits.
Explanation: This is an ideal market conditions for companies earning high profits. Weak rivalry amongst sellers and weak competition from substitute products makes it easier for these industry members to produce better quality goods or services, that gain potential customers and retain customer loyalty. The high barriers to entry makes it very hard for other sellers to enter the market. Industry members are able to have a big market share as a result, allowing them to sell to many more customers as aa well. Little bargaining leverage allows these industry members control over the market and thus they can control what they are going to sell and for how much. Customers will still buy these goods and services regardless. All these conditions are the reasons why these industry members are able to generate such high profits.
A totalitarian political system in which a party, group, or individual that represents the interests of a particular ethnic group monopolizes political power is referred to as
theocratic totalitarianism.
right-wing totalitarianism.
communist totalitarianism.
tribal totalitarianism.
democratic totalitarianism.
Answer:
A totalitarian political system in which a party, group, or individual that represents the interests of a particular ethnic group monopolizes political power is referred to as D) Tribal totalitarianism
Explanation:
Totalitarianism refers to the type of political arrangement in which there is an absolute control of the ruler on the public. This type of system controls the political, social, and cultural aspects of the particular area and its subjects or population. Usually, there is only one leader who has the maximum political powers in this type of system. There are many types of totalitarian political systems, such as Theocratic, Communist, Democratic, Right-wing, and Tribal.
Tribal totalitarianism deals with a particular ethnic group and its interests and monopolizes the political powers.
Therefore, alternative D is correct.
Final answer:
Right-wing totalitarianism is a political system in which a party representing a particular ethnic group monopolizes political power and seeks to control all aspects of citizens' lives.
Explanation:
A totalitarian political system in which a party, group, or individual that represents the interests of a particular ethnic group monopolizes political power is referred to as right-wing totalitarianism. This type of regime is characterized by a strong sense of nationalism, a disdain for democratic principles, and a belief in social hierarchy. It seeks to regulate nearly every aspect of public and private life, and citizens' rights are limited, with the government controlling all aspects of their lives.
Ambrose enters into a contract to buy 350 acres from Belle Vista Farms to cultivate grapes and open a winery. Refer to Fact Pattern 10-1. If Belle Vista breaches the contract, Ambrose's remedy would most likely be
Answer:
The correct answer is d. specific performance.
Explanation:
A specific Performance Evaluation is a synthetic assessment of the performance of social programs during a fiscal year. This evaluation shows the progress in the fulfillment of the objectives and programmed goals of the programs through the analysis of results, services and management indicators, as well as based on a synthesis of the information provided by the units responsible for the programs and which is contained in the Information Module for the Specific Performance Evaluation.
It was designed to generate useful, rigorous and homogeneous information for the public servants of the dependencies, evaluation units and federal government that make decisions at the managerial level.
During the current year, Vann County's motor pool internal service fund sold two vehicles for $5,000. The vehicles had a cost of $6,000 and a carrying value of $4,000. How should Vann County's motor pool internal service fund report this transaction in its fund financial statements?
Answer:
$1,000 gain
Explanation:
The cost basis for the vehicles was $6,000 and the carrying cost was $4,000 = $2,000 depreciation
If they sold the vehicles for $5,000, then they had a $1,000 gain (= $5,000 - $4,000). The journal entries should be as following:
Dr Cash account 5,000
Dr Accumulated Depreciation account 2,000
Cr Motor Vehicles account 6,000
Cr Gain on Motor Vehicles 1,000
Steven's Co. provides the following sales forecast for the next three months: July August September Sales units 5,000 5,700 5,560 The company wants to end each month with ending finished goods inventory equal to 25% of the next month's sales. Finished goods inventory on June 30 is 1,250 units. The budgeted production units for July are:
a. 3,750 units.
b. 6,425 units.
c. 2,500 units.
d. 5,175 units.
e. 6,250 units.
Answer:
d. 5,175 units.
Explanation:
The computation of the budgeted production units for July is shown below:
= Sale units + ending inventory units - beginning inventory units
where,
Sale units is 5,000 units
Ending finished inventory units = 5,700 units × 25% = 1,425 units
Beginning finished inventory units = 1,250 units
Now put these units to the above formula
So, the units would equal to
= 5,000 units + 1,425 units - 1,250 units
= 5,175 units
Final answer:
The budgeted production units for Steven's Co. for July are calculated by adding the July sales forecast to the desired ending inventory for July and then subtracting the existing inventory from June 30. The result is 5,175 units, which is option d.
Explanation:
To determine the budgeted production units for Steven's Co. for the month of July, we need to consider the sales forecast and the desired ending inventory levels. The ending inventory for each month should be 25% of the next month's sales.
For July, the desired ending inventory is 25% of August's sales forecast, which is:
25% of 5,700 units = 1,425 units.
The total units required for July is the sum of July's sales forecast and the desired ending inventory:
5,000 sales units + 1,425 ending inventory units = 6,425 units.
Finally, we must consider the existing finished goods inventory as of June 30, which is 1,250 units. We subtract this from the total units required for July:
6,425 units required - 1,250 units existing inventory = 5,175 units.
Therefore, the budgeted production units for July are 5,175 units, which corresponds to option d.
Higher national trade to GDP ratios are one potential indicator of globalization.
A. True
B. False
Answer:
A
Explanation:
Higher national trade to GDP ratios are one potential indicator of globalization because it cause spontaneous increase in international trade investment among countries.
Which of the following controls would be most effective in assuring that recorded purchases are free of material errors?A. The receiving department compares the quantity ordered on purchase orders with the quantity received on receiving reports.B. Vendors’ invoices are compared with purchase orders by an employee who is independent of the receiving department.C. Receiving reports require the signature of the individual who authorized the purchase.D. Purchase orders, receiving reports, and vendors’ invoices are independently matched in preparing vouchers.
Answer:
D. Purchase orders, receiving reports, and vendors’ invoices are independently matched in preparing vouchers.
A common reason for redeeming a bond prior to its maturity date is ______.
a. the stated interest rate decreased
b. the stated interest rate increased
c. market interest rates decreased
d. the market price of the bond decreased
Answer:
Correct option is (c)
Explanation:
Market interest rate and price of the bond are inversely related.if market interest rate falls and is lesser than stated interest rate (coupon rate), then the bond becomes attractive and its price increases. So, bond can be solved at present higher than the maturity value. This is the reason bond is redeemed before maturity.
On the other hand, if market rate increases, bond becomes less attractive as investors can earn more by investing at market interest rate. So price of bond falls and there is no point redeeming it before maturity.
Consider an oligopoly industry whose firms have identical demand and cost conditions. If the firms decide to collude, then they will want to collectively produce the amount of output that would be produced by:______
a. A monopolistic competitor.
b. A pure competitor.
c. A pure monopolist.
d. None of the above.
Answer:
The correct answer is C. A pure monopolist.
Explanation:
The pure monopoly arises when there is a total absence of competition, due to independent entry barriers to the company's competitive capacity.
A single company offers a product that has homogeneous characteristics, which has no substitutes and for that reason has a large number of buyers. There are also economic, technological or legal barriers that prevent the entry of potential competitors. That is, there are barriers to entry.
A process is measuring the number of returns per 100 receipts at a local retail store. The number of returns were 10, 9, 11, 7, 3, 12, 8, 4, 6, 11. Find the standard deviation of this sampling distribution.
Answer:
The standard deviation of this sampling distribution is 3.07
Explanation:
There are n = 10 samples
Mean: [tex]\frac{\sum x_{i}}{n}[/tex] = (10 + 9 + 11 + 7 + 3 + 12 + 8 + 4 + 6 + 11) / 10 = 8.1
Variance: s^2 = [tex]\frac{\sum {(x_{i} - mean)^{2}}}{n-1}[/tex]
= [(10 - 8.1)^2 + (9 - 8.1)^2 + (11 - 8.1)^2 + (7 - 8.1)^2+ (3 - 8.1)^2+ (12 - 8.1)^2] + (8 - 8.1)^2+ (4 - 8.1)^2+ (6 - 8.1)^2+ (11 - 8.1)^2] / 9
= 9.43
Standard deviation: s = [tex]\sqrt{s^2}[/tex] = [tex]\sqrt{9.43}[/tex] = 3.07
Margaret and Jack are working on a high-priority project with a tight deadline. When Margaret is unable to meet the deadline, Jack attributes it to her clumsiness. However, when he is unable to meet the same deadline, he blames it on poor planning by his manager. This scenario exemplifies ________.
Answer:
The correct answer is The fundamental attribution error.
Explanation:
The Fundamental Attribution Error (EFA) is a phenomenon that occurs when we try to explain our own behavior with respect to that of others. Many times we find it hard to understand why a person acts as he acts. And we do not stop to look for the reasons that are the basis of their behavior.
A very clear example is to suspend an exam. If you have to explain to someone why you have suspended the exam, you probably mean that it was very difficult, that you had not rested, did not have time to study or even that the teacher suspended you.
Now imagine that it is another person who suspends and you have approved. Surely if you have to explain why you have suspended you will explain that it is a bit vague, that you have not studied enough and even that you were not interested in approving.
According to the quadrants of the social style matrix, which of the following should salespeople do when selling to expressives?
A. They should focus on sales presentations with factual statements and technical details.
B. They should demonstrate how their product will help the customers achieve personal status and recognition.
C. They should avoid presenting a product that will require the customers to be the first ones to use the product.
D. They should refrain from preparing sales presentations with product demonstrations and creative graphics.
E. They should avoid mentioning testimonials from well-known firms and people during their sales presentations.
Answer:
B) They should demonstrate how their product will help the customers achieve personal status and recognition.
Explanation:
The social style matrix uses personality traits to categorize customers. It divides people into four categories:
Driving Style: controlling, determined and active peopleExpressive Style: enthusiastic and emotional peopleAmiable Style: friendly and relationship driven peopleAnalytical Style: thoughtful and reserved peopleSince we are trying to sell goods to expressive people, then we must focus on how the goods will make them feel more important (VIPs). They seek the attention and notice of other people (they are show-off people). They want to feel important and they will buy goods that make them feel that way.
For the past twenty years, Curtis purchased its jewelry-cleaning kit components from Evans' Suppliers, a local company that recently went out of business. As a re-cent hire to Curtis, you are excited about the opportunity to search for suppliers using modern tools that will allow you to search throughout the country and even outside it for the best ven-dors. First Steps What should be your first step?
Answer:
Explore the priorities within your own company, and find out what the Curtis stakeholders, e.g., manufacturing, marketing, need from avendor. You decided that your first step should be to explore the needs within your own company. This was the best choice. You would need toknow what the priorities and needs for Curtis stakeholders are before you can begin to evaluate vendors.
__________ are tactical pricing elements that are intended to aid supply chain members in promoting the firm's product at the retail level.
a.Price objectives
b.Pricing techniques
c.Pricing discounts
d.Promotion allowances
e.Cost-volume-profit analysis
Answer: (D) Promotion allowances
Explanation:
The promotion allowances is one of the type of allowance that reduce the actual price of the product that the suppliers offers are carried out out for the additional type of promotional activities for supporting the product of the supplier.
The various types of promotional program and the advertisement are the main example of the promotion allowances.
The promotion is one of the important factor of the sale as it provide the awareness to the customer about the products.
Therefore, option (D) is correct.
Dave is having a problem with his satellite service. He goes online to look for a way to solve the problem, and runs across a troubleshooter application on the provider’s website. Which form of IT solution is he using?
Answer: expert system
Explanation: In simple words, an expert system refers to a computerized decision making system, used for problem solving, which uses both facts and theories to provide a solution of a complex problems.
Such kind of systems are usually used by organisation operating in finance or having to deal with activities involving high technology. These systems provide solutions to the problems that will take a lot of time if solved by any human being.
Ewa signs an instrument unconditionally promising to pay to "Sunny State Bank" $5,000 with interest in installments with the final payment due June 1, 2013. Refer to Fact Pattern 24-2B. The instrument that Ewa signed is most likely
Answer:
a promissory note
Explanation:
Based on the information provided within the question it can be said that the instrument that Ewa signed is most likely a promissory note. This is a not that enforces an unconditional promise, from one individual to another promising to make a certain payment in a certain time period. Which is exactly what EWA is signing when agreeing to pay $5,000 with interest in installments with the final payment due June 1, 2013.
Which of the following scenarios demonstrates the leverage effect on net operating income due to the existence of fixed costs?
A) A 25% increase in sales resulting in a 30% decrease in net operating income.
B) A 15% increase in sales resulting in a 15% increase in cost of goods sold.
C) A 25% increase in sales resulting in a 30% increase in net operating income.
D) A 25% increase in sales resulting in a 30% increase in fixed costs.
Answer:
C) A 25% increase in sales resulting in a 30% increase in net operating income.
Final answer:
Scenario C) A 25% increase in sales resulting in a 30% increase in net operating income demonstrates the leverage effect, as fixed costs remain constant, magnifying the impact of sales on income.
Explanation:
The scenario that demonstrates the leverage effect on net operating income due to the existence of fixed costs is C) A 25% increase in sales resulting in a 30% increase in net operating income. This scenario reflects the leverage effect because fixed costs do not change with an increase in sales, and therefore any additional sales revenue will result in a greater proportionate increase in net operating income. On the other hand, if costs were variable, a 25% increase in sales would likely lead to a proportional increase in costs, thus not yielding such a high increase in net operating income.
When looking at the effect of changes on costs:
An increase in the cost of the lease of the firm's building would raise both average total cost (ATC) and marginal cost (MC) if the lease is considered a variable cost at the margin, or just ATC if it is purely fixed.A reduction in the price of electricity would generally lower ATC and MC, as electricity is a variable cost that changes with output.A reduction in wages will likely decrease ATC and MC, assuming labor is a variable cost.A change in the salary of the president of the company affects ATC, assuming the salary is a fixed cost and does not affect MC as it does not change with the output."Why create a perceptual map?" asked David. Andreas, the senior marketing manager, gave him four reasons. Which of the following is NOT a valid reason?
a"It’s a quick way for senior managers to see not only our product but each of our competitors, all at once."
b"It’s a way to demonstrate the dimensions that our customers think are important."
c"It shows where we aren’t—and where our competitors aren’t—in our customers’ and prospects’ minds."
d"It’s a way to show the position of the company in ten years."
e"We can easily show where we are positioned and how large the market is."
Answer:
A perceptual market shows perceptions of customers about the attributes of a business happening now. Therefore, the reason stated below is not a valid one to support the usage of this graphic
d"It’s a way to show the position of the company in ten years."
Explanation:
A perceptual map offers the possibility of illustrating the perception of different products in one market in terms of different attributes: e.g. quality, price, warranty, service, design and so on.
The senior managers can take valuable decisions when looking how the market perceives the product sold by the company related to the competitors.
See the image attached to have an idea of how a perceptual map looks like.
The correct answer is d) "It's a way to show the position of the company in ten years." This is not a valid reason to create a perceptual map.
Explanation:The correct answer is d) "It’s a way to show the position of the company in ten years." This is not a valid reason to create a perceptual map. A perceptual map is a visual representation of how customers perceive and evaluate various products or brands in relation to each other. It is used to understand the positioning of a company in the current market and to identify opportunities for improvement or differentiation. However, it is not intended to predict the company's position in the future.
Learn more about Perceptual Map here:
https://brainly.com/question/31917841
#SPJ6
For featuring Lego Sets prominently in its store window, Toy Emporium, a store that carries educational toys, received a free motorized Ferris Lego Wheel kit, valued at $150. This is an example of a:Forward dating.Seasonal discount.Cash discount.Promotional allowance.Rebate.
Answer:
Promotional allowance
Explanation:
Promotional allowance is a discount on aproduct or any compensation given by suppliers to trade partners in order to carry out more promotions of their products.
Seasonal discounts are usually given on seasonal goods to encourage buyers to purchase the product in off peak periods.
Cash discount is usually given for prompt payment.
Rebate is when a part of an amount paid is returned to a customer.
I hope my answer helps you.
Toy Emporium's receipt of a free motorized Ferris Lego Wheel kit for featuring Lego Sets is an example of a promotional allowance, a common incentive in retail to promote specific products.
Explanation:When Toy Emporium featured Lego Sets in its store window and received a free motorized Ferris Lego Wheel kit, this is an example of a promotional allowance. A promotional allowance is a discount or deal offered to a retailer or distributor as an incentive to market or promote a manufacturer's products. This could come in the form of free merchandise, such as the motorized Ferris Lego Wheel kit Toy Emporium received, which is valued at $150.
During a recent brainstorming session, one of Franklin's co-workers suggested that their company could sell some of the data contained in its customer databases to earn extra revenue for the business. As a long-time member of the ACM (Association for Computing Machinery), Franklin is opposed to the idea because it violates which of the following imperatives in the ACM code of ethics?A. Be honest and trustworthy
B. Respect the Privacy of others
C. Honor property rights
D. Avoid harm to others
Answer:
B. Respect the privacy of others
Explanation:
Like in many other data privacy dilemmas, it is often considered highly unethical to give your customer's data to third parties. Having that in mind, it is a privacy breach to sell customer data.
The customers would have to give their consent in order to have their data used for purposes other than those that brought their data to Franklin's company in the first place.
Happy Valley, Inc. has received an invoice for $6,500 with terms of 3/15, n/45 and uses the net method to record purchases. If Happy Valley pays the invoice on the seventeenth day, Accounts Payable will be:_________.
Answer:
$6,500
Explanation:
In these cases, the fraction 3/15 represents that 3% discount will be offered on payment if the payment is made within 15 days.
The fraction n/45 represents the total credit period allowed for this purchase is 45 days.
So if a person makes the payment beyond 15 days there will be no discount offered and accordingly, the purchase price will be paid.
Here, Happy Valley also paid after 15 days, that is on 17th day. Thus, net purchase will be $6,500 and no discount shall be recorded on such payment, or recording the purchase value.
Based on the method used to record purchases and the discount involved, the Accounts Payable for Happy Valley Inc. would be $6,500.
The terms 3/15, n/45 mean that Happy Valley would get a 3% discount if they pay within 15 days, otherwise they would have to pay in 45 days.
Happy Valley paid in 17 days which was outside the discount period so they will not get any discount and will pay the full $6,500.
Find out more on trade discounts at https://brainly.com/question/24370366.
"America has forged this success while utilizing, in large part, only half of the country’s talent. For most of our history, women—whatever their abilities—have been relegated to the sidelines. Only in recent years have we begun to correct that problem." —Warren Buffett The Warren Buffett quote illustrates the concept that a company willing to diversify draws from a larger talent pool and which leads to hiring people with diverse skills sets. This is an example of what positive benefit of diversity?
Answer:
Drawing talent from a larger and more diverse pool allows a business to attract and retain the best talent available
Explanation:
Around half of the world's population are women, and that applies to all countries. Buffet believes that American businesses have overlooked women's talent and therefore have missed half of America's talent.
It makes mathematical sense. If you are given the opportunity to choose 5 team members from a pool of 20 people, you will have double the chance of selecting a better team than if your pool were only 10 people.
Besides that mathematical fact, women also have different views than men over most issues, and they are also half of the nation's customers. So it is possible that during the last 200 years, businesses have been addressing half of their customers the wrong way.
The service profit chain is the service sequence from employees to customers to profit. According to this concept, the company's strategy and service delivery system determines ________.
The service-profit chain is the service sequence from employees to customers to profit. According to this concept, the company's strategy and service delivery system determines how employees service customers.
Accepting the concept that bottom-line profitability is accomplished by cultivating customer loyalty and that a significant component of customer loyalty is employee happiness, is the first step in understanding the theory behind the Service Profit Chain.
In service-oriented firms, the relationship between staff happiness, customer loyalty, and financial success is known as the service-profit chain. It demonstrates how emphasizing worker pleasure and customer satisfaction could improve a business's financial success.
Therefore, It determines how employees service customers.
Learn more about service-profit, here;
https://brainly.com/question/33401831
#SPJ12
Final answer:
The company's strategy and service delivery system determine the quality of interactions between employees and customers, affecting customer loyalty and profit. This reflects the value chain concept, which is a series of value-adding steps in production, influencing a company's overall success.
Explanation:
The concept of the service profit chain posits that the company's strategy and service delivery system determine the quality of the employee-customer interactions and ultimately the level of customer satisfaction and loyalty, which in turn affects the profitability and overall success of the business. This concept aligns with the idea of the value chain, which suggests that each step in the production process adds value to the final product or service.
Effective management of the supply chain, ensuring the integration of business functions, leads to a responsive and efficient mechanism capable of meeting market demands and optimizing revenue, cost, and profit. Thus, by focusing on employee satisfaction and empowering them to deliver exceptional service, companies can create a virtuous cycle that enhances both customer and shareholder value.