PLEGS
The ability of a business to maximise its returns and earnings relative to its costs.
Profitability
The mutual dependence that the four key business functions have on one another to achieve goals.
Interdependence
These objectives are tactical or operational in nature, usually focusing on day-to-day periods. (Short-term or Long-term)
Short-term
The strategy of naming a product to give it an identity and differentiate it from competitors.
Branding
The interaction between the customer and the staff who deliver the service.
People
The extent to which a business can meet its financial commitments in the short term (under 12 months).
Liquidity
This function provides the funds for marketing campaigns, staff training, and raw materials.
Finance
These broader goals are strategic and are generally determined for periods of five years or more. (Short-term or long-term)
Long-term
A pricing strategy where a business charges the highest possible price for a product during its introduction.
Skimming
The total experience of the customer from the moment they walk in to the final delivery of the product.
Process
The ability of a business to increase its size, market share, or number of outlets in the long term.
Growth
This function is responsible for the transformation of inputs into outputs using funds allocated by finance.
Operations
This describes the situation where achieving one financial objective, like growth, might weaken another, like liquidity.
Conflict
This "P" refers to the activities that make the product available to customers where and when they want it.
Place
The tangible cues like signage, brochures, or website design that give a customer confidence in a service.
Physical-evicence
The ability of a business to minimise costs and manage assets to achieve maximum profit with minimum assets.
Efficiency
The primary goal of finance is to ensure a business continues to operate and provides this to its owners.
Profit
To achieve long-term profitability, a business must first ensure it is managing this effectively in the short term.
Efficiency
A pricing strategy where a product is sold at or below cost to entice customers into a store.
Loss-leader
This extended P is particularly crucial for service-based businesses like hotels or hairdressers.
Service
The extent to which the business can meet its long-term financial commitments, often measured by gearing.
Solvency
Financial management involves the monitoring and planning of these to ensure all business goals are met.
Resources
This process involves constantly checking short-term results against long-term plans to ensure the business stays on track.
Monitoring
The specific elements of the promotion mix including advertising, personal selling, and publicity.
Promotion
A business must ensure staff are well-trained to reflect the brand's culture and values.
Training