2.3.1 INTERNALMARKETINGInternal marketingcan be defined as the employees are treated as “internal customers” to motivateall employees to satisfy customers by give them experience with thatorganisation, and not just with the company’s products but then the performanceof company’s workforce will resulted in customer satisfaction. (Kotler andArmstrong,2010).Rafiq and Ahmed (2000) state that internal marketing is the process of attracting, developing,motivating, and retaining qualified employees through job-products that satisfytheir needs. Kotlerand Armstrong (2010) explain that marketers recognize the marketing activitieswithin the company can be as important than marketing activities directedoutside the company because in order topromise excellent service needs thecompany’s staff is ready to provide it. Most of all the companies understandthat in order to taking care of customers means the first thing that they should do is taking care of their employeesbecause their employees are important assets for company because they areresponsible for delivering quality products and services to their customers. (Peppers and Rogers, 2016).
Futhermore, internalmarketing can be successful when top level management fully embrace it. Theidea of internal marketing must start with top management and be communicateddown to the very bottom of the firm and thus, they have to accept and live upto their role in an internal marketing process(Monger,2014)2.3.2 OPERATINGCOSTOperatingexpenses are the costs that associated with organization’s main operatingactivities. in most commercial leases, capital costs also includes in operatingexpenses. This is related those expenditures that a business incurs to engagein any activities directly associated with the production of goods or services.In other words, operating cost is an expenditure is one made on account of capital and could be expressed asthe expenditure made with a view of bringing into existence an advantage forthe enduring benefit of the business (Vukovich,2009)Accoding to CanadianInstitute of Chartered Accountants (CICA), commercial lease definitions ofoperating costs of the phrase capital costs does define as the expenditure forcapital assets as identifiable property,plant, and equipment but it are use in the production or supply of goods andservices,for administrative purposes or for the development,construction,maintenance.
It also have been acquired, constructed or developedfor being used on a continuing basis of business and are not intended for salein the main activity of business. 2.3.3 STRUCTUREOF ASSETS AND CAPITALAssets or capital are valuable items byan organizationn in which the firms make profits by owning assets that can bemeasured and reasonable by using them to generate revenue. The firm’s asset andcapital structure represents its strategy for profit returns from its assetbase and it must shows their place in balance sheet by bringing in returns.
Besides that, These structures of assets and capital are acquired from ownersand from creditors would show how the firm uses to earn income for company (Schmidt,2004)According to Schmidt (2004),financial/Assets structure refers to the balance between all of the company’sliabilities and its equities. Thus concerns can be the entitle as”Liabilities+Equities” side of the Balance sheet .Meanwhile, capitalstructure refers to the balance betweenequities and long term liabilities as the short term liabilities do notcontribute to capital structure of the business.According to Fabozzi and Peterson(2000), capital structure is a part of the financial structure in which itreflects the status of capital structureand focus to the proportion of the various long-term sources of financing.Meanwhile, A firm’s asset structurewould helps the firm to determine the way in which finance is defray,especially the balance of long-term loans and short-term debt.