The market for insurance is one example of reducing risk by using diversification.

What problems might face a company that focuses mainly on its most profitable customers?

Murrr4er [49]

Although the customer is unquestionably the cornerstone to a successful organization, client centricity has several drawbacks, ranging from financial to innovation-related areas.

The drawabacks can be listed as:

Budget-Cost

Businesses create customer-focused policies in an effort to impress and keep consumers, but doing so can be expensive and may not be financially prudent.

Not every customer is equivalent!

Although the customer is always right, not all customers are suitable for your company. So, building just a customer based approach can harm your business.

Customers are unsure too!

Many marketers feel that if a company is consumer-focused, it will learn what the clientele truly desires and prosper.

While it's crucial for businesses to pay attention to their customers, they also need to know when to shift their attention away from them.

Love the Customer, but Don't Expect Love in Return

According to conventional knowledge, clients are more loyal to companies that go above and beyond their expectations; nonetheless, your customers may betray you in order to get the cheap, satisfying solutions they actually desire.

To know more about the topic, refer to:

brainly.com/question/20935329

#SPJ4

3 0

1 year ago

I tend to be skeptical in dealing with others at work

torisob [31]

Its 6 trust me im a certified verified person

6 0

3 years ago

You want to have $13,000 in 9 years for a dream vacation. If you can earn an interest rate of .4 percent per month, how much wil

alexdok [17]

Answer:

PV= $8,447

Explanation:

Giving the following information:

Future value= $13,000

Number of months= 9*12= 108

Interest rate= 0.4/100= 0.004 compounded montlhy

To calculate the initial investment required, we need to use the following formula:

PV= FV/(1+i)^n

PV= 13,000/(1.004^108)

PV= $8,447

7 0

2 years ago

A new product made from recycled bio-plastics needs 25 labor hours to complete the build for the first unit. If production opera

Zigmanuir [339]

Answer:

166.25 hours

Explanation:

It take 25 hours if the production is going at 100% capacity, but the production is only going at 67%, therefore, 33% of the capacity is under utilized. It takes 8.25 more hours to finish the unit since the capacity is only at 67%. Finally, it takes 25+8.25 hours to finish a single product, hence taking 166.25 hours for 5 units.

We do this like this:

--> 25 ------ 100

--> X ------ 33

--> 33*25 = 100*X

--> 825/100

--> X=8.25

Hope this clears everything. Thankyou.

7 0

3 years ago

Sanyo Corporation manufactures a popular model of business calculators in a suburb of Seoul, South Korea. The production process

Elden [556K]

Question a)

The sum of the Total assets plus total fixed assets results in total assets.

Question b)

The division of Net sales over total assets results in Asset Turnover

Question c)

The subtraction of the cost of good sold from net sales is equal to the gross margin

Question d)

The subtraction of Operating expenses from gross margin results in the Net Operating profits, before the taxes.

Question e)

The subtraction of Taxes from Net Profit before tax results in Net profit after taxes

Question f)

The division of Net profit after tax over the Net saves gives you the Net profit margin percentage.

Question g)

The division of Net profit Margin percent over the asset turnover results in a return on assets.

5 0

3 years ago