Return on assets)
R.O.A. (Return on assets) = Net income / total asset
An indicator of how profitable a company is relative to its total assets. ROA gives an idea as to how efficient management is at using its assets to generate earnings. Calculated by dividing a company's annual earnings by its total assets, ROA is displayed as a percentage. Sometimes this is referred to as "return on inve
of Netflix, who pay the monthly fee, can just simply click on the movies they want at the website and then the company sends the DVDs to their home. They could rent no more than 3 DVDs at once, and to rent another movie, the customer has to return the DVD by mail. Customers can keep the movies as long as they like. Using these rules, the company no longer needed to charges for late returns.
Af
business to the security company
Implement a complementary and comprehensive plan
Start with principle of ‘Economy of scale’
Achieving global competitiveness and lower costs by increasing size and volume
Recovery of capital brokerage function of banks
Training the financial experts
Employing financial managers that are able to maintain the necessary balance between risk and return
of high concession by the pressure of home-shopping companies.
Home-shopping companies: Operational Process
In its operational process, there are basically three main considerations for the company. Firstly, the firm should select items to sell for achieving its target return and make a forecast for how much demand would occur for the sales activities. This action can be fundamental basis
fee
Service
Recommendation system
Search engine
Personalized service(queue)
Solutions
(1) Licensing with
a cable company
+ Low investment
(no needs for any gadget to
connect a TV to a computer)
Low return
Loose control over VOD market
(2) Building a stand-
alone company
+ Atmosphere of calm
+ Minimizing minus effect
High cost
Difficulti