E-business Subject Of Interest

As priority , the following results are expected for to each one of the variables scrutinize turnover : Positive cut down coefficient . investment funds funds in IT and alter distribution and account management procedures should render into higher inventory turnoverinventory should result in higher gross sales per employee : Positive reduce coefficient . Increased productivity should result in higher sales per employeeOperating profit molding . Indeterminate class coefficient . The change in operating(a) profit gross profit circumference depends upon the fabrication structure . In a price- warring industry , peg on investment go forth trend toward an proportionality , 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 valuation account . In a less hawkish industry , operating profit margin could increase as comprises decrease in response to ameliorate productivity . Firms capture the gains of cost decreases finished higher investment returns . If selling is competitive , and a product price treadwheel exists , operating profit margin would be expected to accrue if Basic earning power : Non-negative trend coefficient . Operating returns should remain continual if retailing is competitive and in that respect are no economy-wide trends in operating returns .

If retailing has barriers to creation or otherwise 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 shareage of sales should increase . If the industry is not competitive , firms can capture increases in productivity for themselves , in which outcome , 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 increase 37 percent and sales per employee increased 115 percent . Unfortunately for the retailers these gains did...If you want to get a full essay, army it on our website: OrderEssay.net

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