STL Began as a Manufacturer and Retailer of Customized Apparel

question 60

Essay

STL began as a manufacturer and retailer of customized apparel and accessories. Customers could choose their specifications online, and STL would produce and deliver the products to customers' homes. Initially, its market was limited to the U.S., but the company has begun to receive enquiries from overseas customers from many other countries. However, STL does not have the financial resources or the confidence to set up operations in other countries. Which methods could the CEO use to meet this overseas demand, taking into account the company's weaknesses?

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Definitions:

Net Profit Margin

A financial metric that shows the percentage of profit a company generates from its total revenue, indicating profitability efficiency.

Gross Margin Percentage

A financial ratio that indicates the percentage of revenue that exceeds the cost of goods sold (COGS), a measure of profitability.

Total Assets

The total sum of all assets, both current and non-current, owned by a business.

Average Collection

The average period of time it takes for a business to receive payments owed by its customers.