FMCG Supply & Demand – Microeconomics
Accounting INDEX AI
by Accounting Index AI
3y ago
#Alfred #Marshall (British Economist) first introduced the #Supply & #Demand theory in 1890. #Apple Inc. products are not subject to price sensitivity as such, as Customers buying Apple’s products tend to be indifferent: when it comes to pricing, leading to inelastic demand. The likes of Supplier-rating & Price-comparison Websites, such as, #Trustpilot, #MoneySupermarket, & #Uswitch have led to more transparency & ease-ability, as far as selecting a #FMCG supplier is concerned. The post FMCG Supply & Demand – Microeconomics appeared first on Accounting INDEX AI. Source ..read more
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Behavioural Economics – FMCG Industry
Accounting INDEX AI
by Accounting Index AI
3y ago
Consumers have power to make any brand-name a success/failure. There is a perception that economic-decision-making is driven by emotions rather than rationality. On the other hand, the marketers have a tough job of ensuring that the products & services offered by their Organisation are not being ignored & rejected by the prospective customers altogether. Instead, they have to explore innovative ways of attracting new & returning customers. Noble Prize Winners, #Richard #Thaler & #Daniel #Kahneman have done some excellent work on ‘Behavioural-Economics’. B.E – Behavioural-econom ..read more
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Product Life-cycle (Nokia v Apple)
Accounting INDEX AI
by Accounting Index AI
3y ago
Product Lifecycle: We have witnessed a significant shift after millennium (2000) in the supply & demand of technological products & services. Product lifecycles have been subjected to multi-dimensional factors, ranging from ease of use, accessibility, & efficiency (Android/Apple Apps). Product lifecycle theory is mainly used to evaluate the progress of products/services from their inception to decline. C-Suite executive’s plans to ensure that the underlying margins are not compromised & any unprofitable products/services are stopped to save working capital of the company. Produ ..read more
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Supply Chain – Big 3 FMCG Giants (Nestle, Unilever, P&G)
Accounting INDEX AI
by Accounting Index AI
3y ago
Business Partnering is becoming a key perquisite for Finance Professionals. In order to be a useful Finance Business Partner & guide your Business Stakeholders accordingly; you got to be able to understand the underlying business model of the Company that you’re working for. There is no better way to start-off; then to understand the ‘Supply-Chain’ of your Organisation. Academically speaking, Michael Porter has done phenomenal work in this area. Porters Value Chain Supply Chain? In its simplest terms, supply chain is how we source raw materials to manufacture goods & services for our c ..read more
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Why Blockchain …
Accounting INDEX AI
by Accounting Index AI
3y ago
In the Accounting World, we haven’t witnessed the full impact of Blockchain as yet. But it is bound to be around us sooner than later. The underlying business models of many Industry-Giants will be impacted with the arrival of Blockchain. Blockchain is envisioned to Eliminate Intermediaries, Reduce Corruption, & facilitate Equilibrium in the Society. The best way to understand Blockchain is to consider the business model of Uber & Netflix. The key consideration here is that there is no underlying intermediary between the User & the Supplier. You can download an app & start usin ..read more
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Should Accountants deploy big-data
Accounting INDEX AI
by Accounting Index AI
3y ago
Should Accountants deploy Big Data Traditionally, Accountants have used Management Accounts to uncover stories about the business performance. Not anymore though. With the emergence of Big-data & BI-Business Intelligence tools; there is a paradigm shift towards the use of ‘Realtime data’ collected from various data-streams (Social Media, CRM). Supply Chain Management – SCM E-commerce (IoT) The e-commerce industry is witnessing an unprecedented shift towards AI enabled solutions. C-suite executives are using Big-data intelligence to make viable business decisions. In particular, to increase ..read more
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Data analytics & accountants
Accounting INDEX AI
by Accounting Index AI
3y ago
The Data-analytics ecosystem is expanding by leaps & bounds, amid Technological advancements in the form of AI-Artificial Intelligence, IoT- Internet of things, & Big-Data. 21st Century Accountants need to understand data-analytics, in order to facilitate robust business-decision-making in their Organisations. Business-Executives are deploying Business-Intelligence tools & applications, in order to better understand their targeted markets to outplay their Competitors. In doing so, they’re implementing the new ways of data-gathering (Google Analytics), & Business-Data-Intellige ..read more
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COGS – SERVICE vs MANUFACTURING BUSINESSES
Accounting INDEX AI
by Accounting Index AI
3y ago
Whether you are working in the FMCG, Technology, or Manufacturing Industry, almost every business uses GPM – gross profit margin analysis to analyse its financial performance in terms of procurement, pricing, & profitability. This mere indicator aids in understanding the underlying reasoning behind deteriorating GPM. COGS – Cost of goods sold COGS – Cost of goods sold refers to the direct costs incurred to produce the goods & services produced by the Company to earn profits e.g. manufacturing cost of a Smart-phone will include the following direct costs. Stakeholders: In any given bus ..read more
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CASH is ‘KING’
Accounting INDEX AI
by Accounting Index AI
3y ago
Bank Reconciliation is a key accounting reconciliation to ensure that Company’s Working-Capital is closely monitored. Company Directors are usually interested in knowing the Cashflow position. Thus, the importance of having a robust bank reconciliation process is paramount to allow timely business decision making. For SMEs – Small & Medium Size Company’s the importance of understanding their cashflows is critical. Given that they may not have access to intercompany loans from their Parent & would usually have to raise debt finance to finance any new projects & business endeavours ..read more
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E-BOOK – ACCOUNTS RECEIVABLE
Accounting INDEX AI
by Accounting Index AI
3y ago
Given the dynamic nature of today’s Businesses, Companies are investing heavily in automating accounting processes. The likes of Cloud based accounting systems such as Xero, Sage, & Quick-books are now readily available & used by many SME Organisations Worldwide. If you work in the Accounts receivable department, you may be entering customer invoices, credit notes & customer payments & the underlying debits & credits are generated by the system itself. In order to get more visibility on the underlying debits & credits you may have to run various reports; which may be ti ..read more
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