Matrices Matter
A method of analyzing the product portfolio of a business in terms of market share and market growth
What is a Boston Matrix?
(Current Assets - Inventory) / Current Liabilities
What is the Acid-Test Ratio?
A framework that measures the competitive rivalry in an industry
What is Porter's Five Forces?
Selling more in existing markets
What is market penetration?
A section of a business, such as a department, to which costs can be allocated or charged
A model used to show the degree of risk associated with four growth strategies of the most successful businesses
What is Ansoff's Matrix?
What are financial efficiency ratios?
Projections for GDP growth rate, Inflation, Exchange rates, Population growth, Interest rates, Taxes, and Employment are economic __________ data
What is Forecast
The present value of all future expected cash flows that accounts for the time-value of money
What is net present value?
Product Development is more risky than Diversification
What is false?
A product with low market share in a high growth market
What is a "Problem Child"?
A ratio that measures the degree to which the capital of the business is financed from long-term loans
What is the Gearing Ratio?
A technique for identifying and analysing the positive factors that support a decision and negative factors that constrain it
What is Force-Field Analysis?
A type of analysis that considers economic, technological, social, and political factors of a choice
What is P.E.S.T. analysis
A type of analysis that considers both internal and external factors that could impact the success of a business.
What is a S.W.O.T. analysis?
Attempting to achieve higher sales/ market share of existing products in new markets
What is market development?
Operating Profit / (Non-current liabilities + Shareholders equity)
What is return on capital employed
Switching costs, buyer preference for substitute, Price performance, Trade-off of substitutes
What are contributors to the "threat of substitutes"?
Costing method that allocates only direct costs to cost/profit centres, not overhead costs
A low inventory turnover ration would be seen as good for a retail business such as a grocery store or a clothing store
What is false?
A strategy that involves identifying the worst performing "dogs" and stopping the production and supply of them
What is divesting?
Dividen Yield
What is (dividend per share x 100) / Current share price?
absolute cost advantages, economies of scale, brand recognition, and government policy will determine ____________
What are barriers to entry?
The likely financial result of an outcome obtained by multiplying the probability of an event occurring by the forecast economic return if it does not occur
What is expected value?
Total cost of producing a product / Number of units produced
What is unit cost?