Why Would a Business Use a Focus Strategy Rather Than

question 164

Essay

Why would a business use a focus strategy rather than try to appeal to all customers?

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Definitions:

Net Cash

The amount of cash available after deducting cash outflows from cash inflows.

Investment Activity

Investment activity involves the allocation of capital to assets or projects with the expectation of generating future returns, contributing to a company's growth or financial health.

Days' Sales in Inventory

A financial ratio that shows the average number of days a company holds its inventory before selling it.

Average Collection Period

The typical timeframe a firm needs to gather payments from sales made on credit, showcasing how efficient its credit and collection procedures are.