Improving Customer Account and Financial Performance in the Merchandise Market
Added on 2019-10-01
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Running head: ANALYSING THE FINANCIAL POTENTIAL AND PERFORMANCE OF CUSTOMER ACCOUNTSANALYSING THE FINANCIAL POTENTIAL ANDPERFORMANCE OF CUSTOMER ACCOUNTS
1ANALYSING THE FINANCIAL POTENTIAL AND PERFORMANCE OF CUSTOMER ACCOUNTSTable of ContentsIntroduction......................................................................................................................................2Task 1...............................................................................................................................................2Tools related to financial analysis...................................................................................................2Calculation of target profitability and examples of cash flow of lifetime (Refer to excel).............3Assessment related to potential variable costs.................................................................................4Accounting management system of Nass Corporation....................................................................5Evaluation of using methods like fixed overheads and administrative support..............................6Analysis of customer account..........................................................................................................7Task 2...............................................................................................................................................7Financial analysis report..................................................................................................................7Conclusion.....................................................................................................................................10Reference list.................................................................................................................................11
2ANALYSING THE FINANCIAL POTENTIAL AND PERFORMANCE OF CUSTOMER ACCOUNTSIntroduction Finance is an important factor in order to run organisation in an appropriate way. Theorganisations need to manage financial department for increasing their profit in the contemporaryera. At present, in order to provide satisfaction to customers, organisations need to developperformance of employees in order to bring lucrative outcome. Henceforth, the task seeks toinvestigate the tools like variable cost, fixed cost and target profitability for managing customer’saccount properly. Assessment related to potential variable cost and account of customers will benegotiated throughout the study. Proper calculation would be done and cost management theorywould be used for analysing the study an efficient way. The problem statement of the study is to analyse the importance of managing customer accountin organisation like Nass Corporation. Task 1 Tools related to financial analysis Cash flow of lifetime value As mentioned by Sleep, Bharadwaj & Lam (2015), value of lifetime cash flow incorporatesconception of present value of products and its future value. It is considered as central to formulaof CLV. In case of Nass Corporation, as it is under construction industry, the authority needs tomake their customer of less than one year old understand about their policy (nassgroup.com2017). It assists to increase profit of the organisation. Variable costs In order to increase profit of venture, organisations need to convince their customers forincreasing their sales in the merchandise market. Variable cost depends on the production ofventure. Henceforth, in order to attract new customers, Nass Corporation needs to highlight theirprevious output for gaining faith of new customers. Target profitability Organisations set their motto or aim for developing their position in the contemporarymerchandise market. As per the viewpoint of Mullins et al. (2014), organisations need to set theirtarget for earning positive outcome. In case of Nass Corporation, authority needs to providetraining to their members as they can hold their existing customers. Proper analysis of financecan hold customers in the venture. Fixed costs
3ANALYSING THE FINANCIAL POTENTIAL AND PERFORMANCE OF CUSTOMER ACCOUNTSAs per the perception of fixed cost, production of venture and its output are fixed. In time ofconvincing customers, team members need to know information related to fixed cost for gettingpositive outcome. In case of Nass Corporation, employees need to receive proper training relatedto financial management for achieving proper outcome. Figure 1: Financial analysis related tools(Source: Learner)Calculation of target profitability and examples of cash flow of lifetime (Referto excel)Target profitabilityIn order to run organisation in the appropriate way, authority needs to set their target profit in ayear. As mentioned by Post & Byron (2015), if they are able to set their profit, they can try tomeet their aim. Henceforth, using 1 or 2 years old customers, they can fulfil their aim. Customerscan advertise about best service organisation to achieve their aim in prosperous way. Examples of cash flow of lifetime valueIn order to maintain lifetime value of cash flow, the authority needs to provide advertisementabout their activity in the venture. As mentioned by Njenga, Kiragu & Opiyo (2015),advertisement is and lifetime activity where many people can get information at a time. Lifetime
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