Transcription of Chapter 2: Analyzing a Dealership’s Financial …
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Chapter 2: Analyzing a Dealership’s Financial …
41 Chapter 2: Analyzing a Dealership s Financial Statements & OperationsTo analyze a dealership s operations, a close look must be taken at the dayto day operations as well as examining the dealership s Financial more emphasis is placed on Financial ratio analysis. However, Financial statements offer only figures. Many times more insight can begained by simply walking through the acts to drive profit margins and the returns on investmentdown to a free market minimum level. In other words, competition translatesinto lower prices.
Analyzing a Dealership’s Financial Statements & Operations 42 (4) Bargaining power of buyers (5) Bargaining power of suppliers These pressures are presented in Figure 2-1. Figure 2-1: Five Basic Competitive Forces Facing an Auto Dealership
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