EVALUATION OF CUSTOMERS’ PROFITABILITY IN THE ACCOUNTING PRACTICE OF TUZLA CANTON COMPANIES
The aim of the paper is to clarify and systematize the methods of evaluating customers’ profitability on a scientifically based methodology. It also aims at investigating the relationship between business results achieved by individual sectors in the companies from the Tuzla Canton (TC) and the appl...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
| Published: |
Faculty of Economics and Business in Osijek
2015-12-01
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| Series: | Ekonomski Vjesnik |
| Subjects: | |
| Online Access: | http://hrcak.srce.hr/file/221347 |
| _version_ | 1797332889077022720 |
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| author | Selma Novalija Islambegović Amra Gadžo |
| author_facet | Selma Novalija Islambegović Amra Gadžo |
| author_sort | Selma Novalija Islambegović |
| collection | DOAJ |
| description | The aim of the paper is to clarify and systematize the methods of evaluating customers’ profitability on a scientifically based methodology. It also aims at investigating the relationship between business results achieved by individual sectors in the companies from the Tuzla Canton (TC) and the applied method of profitability management, in the function of generating such results. The analysis was conducted on the appropriateness of the current approach to profitability management according to information resources which served as the basis of the approach. Certain limitations were identified, which in practice lead to an inaccurate evaluation of customers’ profitability. The transitional economy, characterized by macroeconomic instability and a low competitiveness factor in general, along with other numerous external limitations, requires that companies effectively rearrange their value chain, in the function of finding internal resources, in order to achieve long-term profitability of the customer portfolio management. The origin of modern trends in creation and maintenance of comparative advantages of the company lies in adoption of the “Customer Relationship Management” (CRM) business philosophy. The research results indicate insufficient knowledge of the management about the key “drivers” of success in achieving comparative advantages and point to inadequate organization of the accounting function which is not able to support a modern approach to business performance management. |
| first_indexed | 2024-03-08T07:54:51Z |
| format | Article |
| id | doaj.art-89588c6314fa496a94484b821fd1f064 |
| institution | Directory Open Access Journal |
| issn | 0353-359X 1847-2206 |
| language | English |
| last_indexed | 2024-03-08T07:54:51Z |
| publishDate | 2015-12-01 |
| publisher | Faculty of Economics and Business in Osijek |
| record_format | Article |
| series | Ekonomski Vjesnik |
| spelling | doaj.art-89588c6314fa496a94484b821fd1f0642024-02-02T14:04:36ZengFaculty of Economics and Business in OsijekEkonomski Vjesnik0353-359X1847-22062015-12-01282357377EVALUATION OF CUSTOMERS’ PROFITABILITY IN THE ACCOUNTING PRACTICE OF TUZLA CANTON COMPANIESSelma Novalija Islambegović0Amra Gadžo1University of Tuzla, Faculty of Economics, Tuzla, Bosnia and HerzegovinaUniversity of Tuzla, Faculty of Economics, Tuzla, Bosnia and HerzegovinaThe aim of the paper is to clarify and systematize the methods of evaluating customers’ profitability on a scientifically based methodology. It also aims at investigating the relationship between business results achieved by individual sectors in the companies from the Tuzla Canton (TC) and the applied method of profitability management, in the function of generating such results. The analysis was conducted on the appropriateness of the current approach to profitability management according to information resources which served as the basis of the approach. Certain limitations were identified, which in practice lead to an inaccurate evaluation of customers’ profitability. The transitional economy, characterized by macroeconomic instability and a low competitiveness factor in general, along with other numerous external limitations, requires that companies effectively rearrange their value chain, in the function of finding internal resources, in order to achieve long-term profitability of the customer portfolio management. The origin of modern trends in creation and maintenance of comparative advantages of the company lies in adoption of the “Customer Relationship Management” (CRM) business philosophy. The research results indicate insufficient knowledge of the management about the key “drivers” of success in achieving comparative advantages and point to inadequate organization of the accounting function which is not able to support a modern approach to business performance management.http://hrcak.srce.hr/file/221347profitability managementcustomers’ profitability evaluation methodssectorial analysis of business indicatorstransition economyTuzla Canton |
| spellingShingle | Selma Novalija Islambegović Amra Gadžo EVALUATION OF CUSTOMERS’ PROFITABILITY IN THE ACCOUNTING PRACTICE OF TUZLA CANTON COMPANIES Ekonomski Vjesnik profitability management customers’ profitability evaluation methods sectorial analysis of business indicators transition economy Tuzla Canton |
| title | EVALUATION OF CUSTOMERS’ PROFITABILITY IN THE ACCOUNTING PRACTICE OF TUZLA CANTON COMPANIES |
| title_full | EVALUATION OF CUSTOMERS’ PROFITABILITY IN THE ACCOUNTING PRACTICE OF TUZLA CANTON COMPANIES |
| title_fullStr | EVALUATION OF CUSTOMERS’ PROFITABILITY IN THE ACCOUNTING PRACTICE OF TUZLA CANTON COMPANIES |
| title_full_unstemmed | EVALUATION OF CUSTOMERS’ PROFITABILITY IN THE ACCOUNTING PRACTICE OF TUZLA CANTON COMPANIES |
| title_short | EVALUATION OF CUSTOMERS’ PROFITABILITY IN THE ACCOUNTING PRACTICE OF TUZLA CANTON COMPANIES |
| title_sort | evaluation of customers profitability in the accounting practice of tuzla canton companies |
| topic | profitability management customers’ profitability evaluation methods sectorial analysis of business indicators transition economy Tuzla Canton |
| url | http://hrcak.srce.hr/file/221347 |
| work_keys_str_mv | AT selmanovalijaislambegovic evaluationofcustomersprofitabilityintheaccountingpracticeoftuzlacantoncompanies AT amragadzo evaluationofcustomersprofitabilityintheaccountingpracticeoftuzlacantoncompanies |