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 Any company needs cash to operate. For a

company to create wealth or profit, it must have
a good and cheap source of funds.
Buying creates inventory while selling most
often creates receivables since not all sales can
be transacted on a pure cash basis.

WEALTH CONVERSION PRINCIPLE

CASH

INVENTORY
RECEIVABLE

A. Cash > One important element in the wealth conversion

principle is cash.
B. Inventory > buy low, sell high. The difference between the
cost of aqquiring the inventory and the price at which it is
sold represents the spread or the margin.
The same financial in foreign exchange, which affects a firm
cost when buying raw materials or end products from abroad is
also consistently observed during times of political istability,
such as the following:
. The assassination of Senator Benigno Aquino , Jr. On August
21 , 1983 during the time of the president Ferdinand
Marcos;
. The bloody cup detat led by col. Gringo Honasan against
President Corazon Aquino on the week of December 1 to 7,
1989 .
. The impeachment trial Presedent Joseph Estrada Between
December 2000 and January 2001.

C. RECEIVABLES > As for accounts receivables, speed of

turnover of transaction is imperative.
Some companies offer seven days credit, so a P1 million
credit line can produce a maximum of P4 millions sales in a
month without the need to increase the credit line.
This longer term of payments is well placed knowing the
huge potential of the food service business with the rapidly
increasing delivery of food consumed outside restaurants.

The payment terms of procter and gamble is mostly cash

upon delivery.

MARKET ORIENTATION
Marketing concept in action , reflected in a firms values,
beliefs, activities and milestone for consistent work
behaviour .
There are four majors types of market orientation as shown as
below,
SALES-DRIVEN
MARKET DRIVEN
MARKET DRIVING

CUSTOMER DRIVEN

WITH THE FIRST THREE DEALING WITH THE SERVED MARKET

WHILE THE LAST ONE DEALING WITH THE INDERSERVED
AND UNSERVED MARKET, ALTHOUGH THESE FOUR SHOULD
NOT BE SEEEN A CONTINUUM.
FOR PURPOSE OF DEFINITION SRVED MARKET ARE EXISTING
CUSTOMERS ALREADY BEING CATERED TO BY COMPANY AND
COMPETITION WHILE UNDERSREVED AND UNSEREVED
MARKETS ARE NON-CUSTOMERS WHOSE NEEDS ARE STILL
NOT BEING ADDRESSED BY ANY COMPANY PRODUCTS AR
SERVICES.

SALES DRIVIN > WHEN A COMPANY WOULD RESORT TO PUSH

EFFORT OR WOULD USE ITS SALES FORCE AND OTHER
TRADE PROMO ACCTIVITIES TO SELL ITS PRODUCTS AND
SERVICES.
MARKET DRIVIN > ADDS THE DIMENSION OF IDENTIFYING
CUSTOMERS NEEDS THEN PRODUCING AND PROMOTING
PRODUCTS IN AACORDANCE TO THE CUSTOMERS NEEEDS.
CUSTOMERS-DRIVEN > APPLIES MARKET-DRIVIN G INVOLVES
LOOKING INTO THE LATENT NEEDS OF THE UNSERVED AND
UNDERSERVED MARKETS.

THANK
YOU