Question

Obtain an e-business card from a certified accountant, CPA (RRC instructors excluded). Ask the accountant the following question, “From a financial perspective what are the critical success factors for the retail industry during the pandemic?” Make brief notes of the answer and cite the source.

From a financial perspective what are the critical success factors for the retail industry during the pandemic? Make brief notes of the answer and cite the source.

Answer 1

RETAIL INDUSTRY

Retail industries are the sectors of business where individuals and organizations are selling finished goods to it's end customers. Under such industries only finished goods will exist, because of the same only merchandise inventory will be present there.

SUCCESSFUL FACTORS OF RETAIL INDUSTRY DURING PANDEMIC CONDITION

During the covid-19 pandemic situation, it is very much tough to sustain in an highly competitive business world, however there are certain factors , which helps the industries to continue their business without it's closing. and they are:

• ALWAYS KEEP HEALTHY MIND AND REMAIN CALM : One of the main factor that has to be kept in mind by every business organizations are healthy minds and calm mentality towards tough situations. While we are worrying more and more about the situation at every time, it will affect our hope and their by our skills too. So this may cause the loss to business and thereby termination of business. So always be at healthy thoughts and good hope on the future
• COST EFFECTIVE FACTORS : Cost is the major factors which affects the growth of any retail industries. During the pandemic situation , the business man should seriously take care of the cost factors of products , that they are purchasing for it's resale. Since risk of loss is high in the cureent situations, retailers have to carefully examine the most customer needy products, and thereby can avoid the cost of finished goods inventory. For a retailer ,the cost of goods sold is a key variable in long term profitability.
• BE A FAST FOLLOWER : Retailers always have to kept in mind, thet they have to introduce the new product as soon as possible in the market, without any delay. It helps to keep a profit margin even in the worst condition also.
• GRAB THE OPPORTUNITIES PROVIDED BY GOVERNMENT AND FINANCIAL INSTITUTIONS : During this pandamic condition, retailers can make maximum use of the financial assistance provided by the government and the financial organizations. Governemnet is providing various assistance to help the retailers and also to make new initiatives in business world. So be uptodate with the government policies and initiatives for the small scale business persons.   
• MAKE A STABLE AND STRONG FINANCIAL PLAN : As a retailers, a strong financial plan has to be prepared atleast for three months during this covid-19 situation. It enables the industry to remain in the field without much trouble of running business. And also a efficient business plan will enable the user to reduce additional costs and can avoid wastages.
• FINANCIAL POLICY EVALUATION : A analysis on the financial policies of a organization have to be done. It also includes the review of policies, rules, and strategies towards financial risk. Financial obligations are also have to be examined indorder to determined it's commitments and willings and consistency to pay obligations on a timely basis.