2.3.1 employees because their employees are important assets for

2.3.1 INTERNAL
MARKETING

Internal marketing
can be defined as the employees are treated as “internal customers” to motivate
all employees to satisfy customers by give them experience with that
organisation, and not just with the company’s products but then the performance
of company’s workforce will resulted in customer satisfaction. (Kotler and
Armstrong,2010).

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Rafiq and Ahmed (2000) state that internal marketing is the process of attracting, developing,
motivating, and retaining qualified employees through job-products that satisfy
their needs. Kotler
and Armstrong (2010) explain that marketers recognize the marketing activities
within the company can be as important than marketing activities directed
outside the company because in order  to
promise excellent service needs  the
company’s staff is ready to provide it. Most of all the companies understand
that in order to taking care of customers means the first thing  that they should do is taking care of their employees
because their employees are important assets for company because they are
responsible for delivering quality products and services to their customers. (Peppers and Rogers, 2016).

 

Futhermore, internal
marketing can be successful when top level management fully embrace it. The
idea of internal marketing must start with top management and be communicated
down to the very bottom of the firm and thus, they have to accept and live up
to their role in an internal marketing process(Monger,2014)

2.3.2 OPERATING
COST

Operating
expenses are the costs that associated with organization’s main operating
activities. in most commercial leases, capital costs also includes in operating
expenses. This is related those expenditures that a business incurs to engage
in 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 as
the expenditure made with a view of bringing into existence an advantage for
the enduring benefit of the business (Vukovich,2009)

Accoding to Canadian
Institute of Chartered Accountants (CICA), commercial lease definitions of
operating costs of the phrase capital costs does define as the expenditure for
capital assets  as identifiable property,
plant, and equipment but it are use in the production or supply of goods and
services,for administrative purposes or for the development,
construction,maintenance. It also have been acquired, constructed or developed
for being used on a continuing basis of business and are not intended for sale
in the main activity of business.

 

2.3.3 STRUCTURE
OF ASSETS AND CAPITAL

Assets or capital are valuable items by
an organizationn in which the firms make profits by owning assets that can be
measured and reasonable by using them to generate revenue. The firm’s asset and
capital structure represents its strategy for profit returns from its asset
base and it must shows their place in balance sheet by bringing in returns.
Besides that, These structures of assets and capital are acquired from owners
and 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’s
liabilities and its equities. Thus concerns can be the entitle as
“Liabilities+Equities” side of the Balance sheet .Meanwhile, capital
structure  refers to the balance between
equities and long term liabilities as the short term liabilities do not
contribute to capital structure of the business.

According to Fabozzi and Peterson
(2000), capital structure is a part of the financial structure in which it
reflects the status of  capital structure
and focus to the proportion of the various long-term sources of financing.
Meanwhile,  A firm’s asset structure
would helps the firm to determine the way in which finance is defray,
especially the balance of long-term loans and short-term debt.