BUYERS PORTFOLIO IN EXPORT AND INTERNATIONAL MANAGEMENT Cover Image

ПОРТФОЛИО КУПАЦА У ИЗВОЗНОМ ПОСЛОВАЊУ И МЕЂУНАРОДНОМ МЕНАЏМЕНТУ
BUYERS PORTFOLIO IN EXPORT AND INTERNATIONAL MANAGEMENT

Author(s): Danilo Dorović
Subject(s): Business Economy / Management, International relations/trade, Marketing / Advertising, Socio-Economic Research, Transport / Logistics
Published by: Економски факултет Универзитета у Бањој Луци
Keywords: porfolio of buyers; buyers; market share; profitability; average payment period; gross margin; expenses of servising the buyers; net marigin; foreign market;

Summary/Abstract: The paper in front of you develops methodology for monitoring of company’s buyers located on the foreign markets by simultaneous monitoring of marketing and financial parameters – market share, share of buyer in total profitability of the company, and including as additional element the average payment period; all with final target to give more certainty to managers for strategic decisions. The leading idea is to turnaround current situation in economic theory and practice about not taking into consideration the importance and profitability of individual buyers for operational and strategic activities. By applying the presented methodology, it is possible to organize analysis of buyers in portfolio frame as well as finding out as whether buyer’s characteristics make them as stronghold of overall business strategy or its weakness. The methodology provides comparison of buyer relevance on target markets and defines the buyer as distributor with dominant position or as less relevant on the foreign market. Simultaneously, the profit generated from sales to individual buyers is included into analysis and put into relation with total generated profit from sales to all buyers. Portfolio organized as matrix with market share on x and share of buyer in totally generated profit makes relevant analyses for purposes of defining business strategy that will lead to increased profitability of buyers and the company as whole. The impacts of different elements of the profitability of buyer are taken into consideration: approved discounts, distribution expenses, market and other support expenses

  • Issue Year: 5/2007
  • Issue No: 7
  • Page Range: 77-100
  • Page Count: 24
  • Language: Serbian