In simple words, our business has brand loyalty because of quality and getting bigger and bigger because of quantity. Quantity is numbers and quality is all about management and leadership. The qualitative and quantitative analysis framework usually apply for business structuring, restructuring, positioning problem-solving. If we do the hypothesis of quantitative and qualitative analysis then we will get several points. These points we have to analyze.
Qualitative analysis of this framework
In the qualitative part, we always look at basic but important things to analyze the business. Those things are
Leadership
Working culture relies on leadership. Top-line people and bottom-line people’s leadership qualities boost everyone, motivate everyone to give their full potential. If leadership is strong then the internal structure will be strong and the inter-combination between the people. People will come and engage frequently. That’s why we always look the presentation, conferences, seminars, etc.
Management
We all know what is management, so we don’t have to elaborate on this part. We have to look at the people’s management, structure, management ability of the people. These will tell us how fast work will be finished especially if some unknown problem occurs then how fast they can react. In short, we will get to know the whole internal processes of a company.
People
Everything depends upon people and their gestures. Obviously structure, management, quality, maintenance, holding their clients, improvements, all are depending upon their people. People and leadership are co-related. That’s why we say if we recruit people those who have leadership skill, will change the future. For this reason, we always watch their people and their attitude.
Business model framework
The business model is a simplified diagram of the whole internal structure. It tells how a business collects revenue and in which process. If the business model is strong then we could obviously say that the vision, mission, objectives are clear. This company is stable and it will run for a couple of periods. (for more details)
Technology
Technology is a key part of any industry. It gives resilience, increases speed. If the people and the tools and machines are backdated then the company will not run long. In this case, it’s a trigger to make further improvements. For product-based companies, technology will increase productivity and for service-based companies, it will increase speed. It tells us the right position in the adoption curve.
Competitive advantage
There are several things that give competitive advantages like the trade secret model, disruptive business model, technological innovation, copyrights, etc. If the company has built this kind of a unique strategy then it’s their advantage. It will give them the power to create a market gap as well as dominate product or service furthermore it will give fast-moving ability.
Market position uses for Qualitative and Quantitative analysis both
Market position calculated through the financial statement. Furthermore, it helps both parts of the Qualitative and Quantitative analysis framework. After calculating market share, revenue, cost, CAPEX, OPEX, and all we get to what the position is. If we slightly expand our hypothesis then we could see product-wise and service-wise positions too.
Quantitative analysis of this framework
Balance sheet
This part shows the organizational position and we can prepare any time. Based on our funds, assets, liabilities we prepare the balance sheet. Furthermore, we can break that down into several parts according to our strategy or position like which are tangible, which are non-tangible, which are liabilities, etc. Through this
- We could evaluate our position for maintaining and manupulating our assets
- We could make further startegy or we can improve our strategy based on our fund and assets and all other things.
Profit and Loss statement
Our aim, target whatever is to earn profit. As simple as that. A profit and loss statement or income statement helps to know the profit of a certain period. That’s why it’s the backbone of this analysis. Therefore we get to know Taxes, income, operational costs, finance costs, extraordinary items.
- Hence we could able to cut our costs by analysisng this satement
- Furthermore we could get to know the net income of that period and we could built next strategy or new model
- Additionaly we could know the overall structure of the different accounts like trade account, savings etc.
- We could estimate the life our assets
Cash flow statement analysis
As you all know Operating activities, Financing activities, and investing activities are there. As well as it always tells the cash and cash equivalents, in simple words how much cash is flowing. We could know the difference between cash spending.
- This statement will share the actual position of the money
- Therefore we could make new strategy or improve strategy by seeingh the spendings in all the activities
- After that simple hypothesis could tell from where we have to put our money, from where we have to collect, etc.
- Additionally we could be able to judge where we have to cut the cost.
Market share uses for Qualitative and Quantitative analysis both
From the quantitative point of view market share always tells the percentage in the market. How much revenue we have collected from the market and at what particular position we are staying. Furthermore, we could also differentiate the product revenue and service-based revenue, each in the market.
From the qualitative point of view, we could easily understand the quality is improving by generating trust in the market. In simple words, market share is increasing then we say we have built trust. If we cut the and make good margin like increasing profit through cost-cutting and giving some benefits then market share will increase.
No responses yet