Die realisering van 'n toepaslike bruto wins as belangrike faktor in die bestuur van 'n kleinhandelsonderneming
Moolman, Petrus Lafras
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The goal of this study was to attempt to ascertain the role the realization of an appropriate gross profit would play in the management of a retail business. In the introductory section (Section A) an effort was made to analyse various views, descriptions and terminological concepts attached to the term, gross profit. Deduced from this fact the following conclusion can be obtained: The appropriate gross profit can be regarded as the final maintained gross profit realized in retail business, after taking into consideration all determining factors and reasonable provision for all negative factors that influence gross profit. It is however imperative for management and owners of retail businesses, to conduct a research on all the relevant factors determining gross profitability. An analysis of these relative factors was therefore provided in Section B. The study revealed that factors, such as pricing policy, stipulation of prices, product mix, optimal utilization of selling area and correct presentation of products, make an important contribution to maximization of gross profit. Adding to this are factors such as stock turnover rate and the method of stock evaluation that determine gross profitability. However a vast concern to retailers are factors that influence gross profit negatively and are beyond control in management. The study revealed that these unfavourable factors can be classified into two basic categories: firstly a general shrinkage that includes cash and stock losses attributable to human errors; secondly breakages and other means of shortages and internal and external shoplifting. Referring to Section C an identificational effort was made to reveal the most important factors that influence gross profit negatively. It soon became evident that gross profit is severely dependent on various internal and external factors. This fact, as well as the important role of gross profit in the continuity of retail businesses, entails that gross profit should be controlled and managed. In this regard the process of "management by objectives" imposes an important role. In view of effective planning and control, the collection and recording of timely and appropriate information is of utmost importance. In this regard aspects such as departmentalization, determination of theoretical gross profit, budgetary control, inventory control and the application of sophisticated electronic data processing equipment, play an important and often indispensable part. A number of important conclusions were obtained during the execution and completion of this study. It soon became evident that gross profit is more than a mere accounting term. In fact it is a very important section of business economics - as previously mentioned this aspect should be part of the control function of management. In view of the considerable number of factors which can influence gross profitability, it can be concluded that gross profit can be regarded as one of the most important items which forms part of income and profit and loss statement. Apart from being influenced by various internal and external factors , it became clear during this study that gross profit and systems that are related to this, greatly influence the internal and external environment of the retail business. Gross profit can have a definite influence on the profit of a retail business and this considerably influences the personnel, management, customers, competitors, suppliers, economic and fiscal and legal environment of the business concerned. In this regard shoplifting can have a particular influence on the legal and psychological environment of retail business. In spite of the apparent simplicity of the term gross profit, the study proved that it is in fact a complex concept. In relation to this fact it is apparent that gross profit should be extended as a subject of study at universities, as well as on commercial and scholastic level. In view of the importance of gross profit, with regards to its vulnerability and the continuity of a retail business, it is imperative that gross profit should be subjected to the management process of planning, organising, directing, evaluating and control. Management and owners of retailing should accept the fact that they continuously are exposed to an environment of changing circumstances and techniques. This calls for a totally new approach to the concept of gross profit by retail business management.