Frame your answer and structure your response

Comparing ratios with the markets ratios to determine competitiveness and evaluate factors for change.

Asset Turnover
Sales/Assets: Sales generated from each dollar of assets. Profit margin and Asset turnover tend to vary inversely.

Current ratio:
Current Assets/Current Liabilities: Measure of a company’s liquidity.

For a new product Launch:

Options: Launch Alone, Co-market with a partner, Sell or license to third party?
Competitors? What differentiates our product? How’s the market segmented? Market trends? Our segment trends?
Sales/marketing force? Marketing cost?

Diminishing sales:
Competitors? Fragmented market? Our product vs their product? New improved products by others? Public opinion of
our product?
Solution- Modifying our product especially to expand our user base, Modifying the way it is sold, Assess our R&D team
potential to

Profitability:
Competitors? Our product vs their product? Cost structure (Materials, production, advertising &
transportation/distribution)? Consumers? Important factors that consumers consider- like brand name- how imp is it?
Operations? Other market leaders – Do they spend more on advertising?

Industry Analysis:
Industry structure, Current situation and process; Different segments/products, Consumers and growth trends;
Replacement/new technology; competitive analysis; Govt. Regulations, Profit analysis – cost, sales, revenue etc.