E-business Subject Of Interest

As priority , the following results are expected for apiece of the variables scrutinize turnover : Positive cut down coefficient . Investment in IT and alter distribution and account management procedures should translate into higher inventory turnoverinventory should result in higher Sales per employee : Positive reduce coefficient . Increased productivity should result in higher sales per employeeOperating profit molding . Indeterminate trend coefficient . The change in operating(a) profit gross profit margin depends upon the fabrication structure . In a price-competitive industry , settle on investment go forth trend toward an equilibrium , or normal , level . contestation would ensure that br modernizations leading to increase increase return on investment . An increase in be attended by a lessening in operating margin . In a less competitive industry , operating profit margin could increase as comprises decrease in response to improved productivity . Firms capture the gains of cost decreases through higher investment returns . If selling is competitive , and a product price treadmill exists , operating profit margin would be expected to fall if Basic earning power : Non-negative trend coefficient . Operating returns should remain constant if retailing is competitive and in that respect are no economy-wide trends in operating returns .

If retailing has barriers to creation or other non-competitive characteristics , productivity improvements can translate into deepen BEPCost of goods interchange as fortune of sales : Non-negative drift coefficient . In a competitive industry , consumers should understand the gains in retail efficiency through decreased retail mark-ups . Cost of goods sold as a percentage of sales should increase . If the industry is not competitive , firms can capture increases in productivity for themselves , in which case , cost of goods sold as percentage of sales would be unchangedImplications for Retailers and Electronic businessDiscount retailers experienced a horrendous increase in efficiency in the 1981-2003 period . Inventory turnover increased 37 percent and sales per employee increased 115 percent . Unfortunately for the retailers these gains did...If you want to get a full essay, order it on our website: Ordercustompaper.com

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