What are Qualitative Aspects of Company Analysis
Qualitative Aspects of Company Analysis: As a business owner, there are various aspects of the business that you should be aware of as you look towards growing your business. To remain relevant, you will need to understand the bargaining power of your buyers.
“If they are low-income, then you must make your products affordable.”
Concentration on service or product is essential. There are situations when it would be advisable to have a few products/services and when you should have many such products or services. If the customers want a diversified portfolio, then you should meet this demand. On the other hand, you may choose to specialize in strong areas where you can produce select high-quality products/services. An example of qualitative aspects includes the morale of employees.
Qualitative vs. Quantitative
These are both important in decision making. The quantitative ones are measurable such as the return on investments, profitability, and sales figures. As for the qualitative, we look at reputation, brand and the morale of the employees.
You may have come across some firms which over-rely on the foreign markets to drive their business. This is dangerous since these markets could slump, affecting the company. On the other hand, one should be open to healthy competition by knowing what your competitors are offering.
In line with the above, one must be open to endless possibilities. For instance, you can enter into merger deals or buy out of your competitor to reduce competition or streamline your operations. However, you must be aware of the fact that there every business operates in a regulated business environment. Some laws apply in various companies and therefore, you must understand how they are going to affect your ability to transact businesses.
Technology is changing very fast. There are innovations and patented ideas that are transforming the business environment. One must be aware of these changes and adjust accordingly. The failure to innovate has a direct or indirect effect on the business and this could explain why many companies become obsolete.