Path to Profit That a Favorite Retailer Uses - Essay Example

Retailers need to evaluate their performance by first setting a performance target. When a performance gap is incurred, the retail business has not met its target.

The strategic profit model provides a visual view of a firm’s finances and issues the entrepreneur with the ability to understand and analyze the firm’s return on investment and financial performance.  

2- Path to Profit That a Favorite Retailer Uses

From a personal standpoint, the most favorable path to profit is communication. The ability to leverage technology and its provisions such as email marketing, online social media (such as Facebook, Twitter, MySpace and YouTube), photography and videoing helps meet business objectives the most.   

3- Determining Financial Success

 According to Rothberg, retailers should use multiple measures to determine financial success because financial success comprises many factors such as employee performance (in relation to the set performance target), financial accountability and avoidance of wastage, product design and marketing strategy. In this light, using only one measure such as the meeting of performance target may not suffice to measure financial success, if the volume of stock sold is not factored in (Rothberg, 2, 3).