Maximizing return on equity involves a trade-off between operating profitability (margin on sales) and turnover (efficiency of
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Question:
Maximizing return on equity involves a trade-off between operating profitability (margin on sales) and turnover (efficiency of asset utilization). Consider the different business models of
• A closeout e-tailer, such as Overstock.com (OSTK).
• A regular e-tailer, such as Amazon.com (AMZN).
• A traditional closeout retailer, such as Ross Stores (ROST).
• A department store retailer, such as May Department Stores (MAY).
Discuss how the different business models involved in each of these categories will influence the trade-off between profitability and turnover. (Compare Overstock.com vs. AMZN, ROST, MAY)
Related Book For
Advertising & Promotion An Integrated Marketing Communications Perspective
ISBN: 978-0070891302
5th Canadian Edition
Authors: Gerorge E.Belch, Micheal A.Belch, Micheal A.Guolla
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