Calculation of a firms sales returns, Financial Management

Assignment Help:

a) The combined two-firm concentration ratio of Motorola (approximately 17.5%) and Nokia (35%) is around 52.5% of the market.

b) Up to 2 marks for correct definition: Market share is a measure of a firm's sales returns expressed as a percentage of the market's total sales revenue. Otherwise, market share can be measured in terms of sales volume. Formula is essential for maximum marks. Note: students may select to explain market share via concentration ratios and this should be awarded accordingly.

c) Award up to 2 marks for each applicable benefit that is explained.

• High market power (price setter) by being the dominant firm in the market

• The benefits of economies of scale from large scale of operations, e.g. technological economies

• There is a positive correlation between sales revenue and profit levels, i.e. Nokia's profits tend to increase as a firm gains more market share

• Having a larger market attendance means that Nokia's key stakeholders such as shareholders, suppliers, employees and managers are more confident (and motivated) by the existence of the company

• Brand acknowledgment can bring benefits such as a potentially higher customer base and improved corporate image

• Larger firms are likely to have the finances to invest in Research & Development (essential in Nokia's case)


Related Discussions:- Calculation of a firms sales returns

Explain the currency trading at a discount, What is meant by a currency tra...

What is meant by a currency trading at a discount or at a premium in the forward market? Answer:  The forward market includes contracting today for the future purchase or sale o

Objectives of cash management, Q. Objectives of Cash Management? (i) To...

Q. Objectives of Cash Management? (i) To sustain Optimum Cash Balance: - The major objective of cash management is to determine the optimum cash balance required in the busines

Explain the significance of financial analysis, Question 1 What are the li...

Question 1 What are the limitations of management accounting? Question 2 Explain the significance of financial analysis Question 3 What are the advantages of the value a

Apv capital budgeting framework helpful for foreign capital, What makes the...

What makes the APV capital budgeting framework helpful for analyzing foreign capital expenditures? The APV framework is a value- additivity method. As international projects fr

Capital investment plans , Report based on Capital Investment Plans   ...

Report based on Capital Investment Plans   To analyze the capital investment plans of Hatsun Agro Products Limited (HAPL) we shall look at the capital expenditure of HAPL in

Explain the preferred stocks by equity claims, Explain the preferred stocks...

Explain the preferred stocks by equity claims. Preferred stocks are equity claims with limited ownership rights in comparison to common stocks. They differ from common stocks i

Calculate the thai bhat and risk systematic, 1) Is foreign exchange risk sy...

1) Is foreign exchange risk systematic? What are the implications of your answer regarding corporate hedging policy with respect to foreign exchange risk? In your answers make sure

Working of australian securities and investment commission, Working of ASIC...

Working of ASIC ASIC as an independent government body enforces and regulates company and financial services laws to protect consumers, investors and creditors. It keeps the pu

Ansawar, explain the concept of working capital.what are the factors which ...

explain the concept of working capital.what are the factors which influence the working capital?

Collecting information and forecasting in budget, Collecting Information an...

Collecting Information and Forecasting: All budgets must be based on accurate and reasonable information. A budget derived from information which is irrelevant to the actual or

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd