Business Studies

Digital Marketing Web Analytics
The purpose of this assignment is to identify online objectives, goals, key performance indicators, and targets and utilize metrics to suggest improvements to a business’s online performance.

You have been hired to oversee the Lopes Active Apparel Co. website. Your job includes identifying objectives for the store and ensuring they are met. Part of your responsibilities also include improving the overall performance of the website.

In a 500-word proposal, identify two business objectives for Lopes Active Apparel Co. and at least two key performance indicators (KPIs) that would be used to measure performance. Use the data found in the “Google Analytics Demo Account” and the “Google Analytics Guide” course resources to identify the following data to support your KPIs.

Traffic to the website (compare the current 30 days to the previous 30-day period)
Number of new users
Bounce rate
Average session duration
Mobile performance
Based on the analytics data and KPIs, explain whether the objectives are being met. Provide recommendations to improve performance.

Prepare this assignment according to the guidelines found in the APA Style Guide, located in the Student Success Center. An abstract is not required.

This assignment uses a rubric. Please review the rubric prior to beginning the assignment to become familiar with the expectations for successful completion.

You are required to submit this assignment to LopesWrite. A link to the LopesWrite technical support articles is located in Class Resources if you need assistance.

ANSWER

Determining the Current Level of Performance

Liquidity and profitability ratios offer insight into the company’s current performance. Profitability ratios such as operating profit margin, return on total assets, return on stakeholder’s and return on common equity are suitable in determining whether the company is making profits after excluding its expenses. Liquidity ratios such as quick ratio, current ratio, and inventory to the net are essential in ascertaining whether a firm can meet its current debt obligation without raising any external capital. The liquidity ratios determine the performance of an organization.  The liquidity ratios are a result of a comparison between liquid/current assets and liquid liabilities. They indicate the efficiency and productivity of the organization.

The liquidity ratios determine whether an organization can face its obligations if there is a decrease in activity during slow periods. If there is not enough liquidity, then it will be difficult for them to pay their bills. The profitability ratios indicate the performance of an organization through its profitability. The ratios are determined by comparing the income to the total expenses, showing how efficient it is for an organization to generate revenue compared to its costs. Therefore, the profitability ratios show whether the organization is achieving a good return on its activities.

The ratios are either negative or positive compared to the industry average, which outlines rations above 1.0 to be positive and ratios below 1.0 to be negative. The net profit margin and the operating profit margin are good indicators of the success or failure of the current organizational strategy. Low net profit margin and low operating profit margin mean that the organization is incurring losses from its operations, which can result from the organizational strategy. A high leverage ratio can also indicate that the company is operating with a negative net worth which means it’s being financed by debt.

Ratio Analysis and Strategic Alliance

Firms need to measure their performance during a strategic alliance to ensure they are fit for an alliance. Using profitability ratios when forming the strategic alliance might lead to risks associated with the company’s size, timing problems, and consideration of the long-term plans. The main challenge is that the profitability ratio focuses on the performance of an organization in terms of expenses and income for a particular period but fails to determine its financial strengths and the overall performance and long-term outlook of the firm. For instance, the profitability ratio may fail to determine the debt funding of a firm.

The profitability ratio may fail to indicate the ability of the company to cover its short-term obligations. Some businesses tend to operate on a seasonal basis, which means that their profitability ratios are often high or low. Relatively, the size of the firm may influence its performance. The main reason is that the size of a company affects its financial indicators such as profitability, liquidity, and solvency. Ideally, firms with larger sizes are expected to be more efficient, productive, and profitable due to the theory of economies of scale. Small-size firms are expected to be less efficient and profitable. Another issue with profitability ratios is that it disregards some of the risks that a business needs to consider while generating profit but only focus on financial performance.

The net profit margin can offer immediate information about the net profit per revenue gained. This will assess whether the company is its operations. The leverage ratio can be used to determine an immediate strategic alliance since it shows the probability of a firm making its future debt repayments. Leverage ratios are used to determine the reputation of a firm and how risky future deals are. The leverage ratio will offer financial information on the proportion of debt compared to the capital to determine whether it’s suitable for a strategic alliance. The current ratio is also suitable in financial measurement since it assesses the ability of the firm to meet its current financial liabilities.

Capital Necessary to Support Aggressive Value-enhancement Strategy

The current financial climate poses get challenges in acquiring capital necessary to facilitate an aggressive value enhancement strategy. Acquiring capital for an aggressive value enhancement strategy will be determined by various factors such as the operating profit margin, current ratio, quick ratio as well as debt to assets. These will be used to create an assurance that the firm can return the borrowed funds for an aggressive value enhancement strategy. The capital for the funding value enhancement strategy can be obtained through private equity loans that have a low interest of 3%. The influx of capital will impact the current ratio and quick ratio. The two rations represent the current position of Southwest Airlines’ liquidity.

Southwest Airlines Ration Analysis