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Profitabilty of Business

Tyre 174.39
Furniture 52.24
Jewellery 12.8

Profitabiltiy of business
is function of Profit margin and Inventory turnover

Perceived risk for the prodcuts is obtained from primary market research
P ro fi ta b i l i t y o f B u s i n e s s ( P ro fi t m a rg i n * I n ve n t ro t y T u
Perceived risk
High
Medium
Low

Pro fi tabi l i t y vs Pe rc i ve d R i sk for 3 p rod c ut cate gori e s


Col umn F Col umn G
200
180 174.39
160
140
120
100
80
60
52.24
40
20 12.8
0

s
ate gori e s

12.8

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