Finance & Financial Analysis
This type of budgeting involves setting financial targets for each department based on expected outcomes, encouraging efficiency and accountability.
What is zero-based budgeting?
It’s when a product is priced super low to enter a market or beat competitors.
What is penetration pricing?
This occurs when a firm expands operations across different industries, often diluting its core focus.
What is conglomerate diversification?
This investment appraisal technique considers both the time value of money and the project's overall profitability, using a discount rate to evaluate returns.
What is Net Present Value (NPV)?
When a market is so saturated, firms start tweaking the product just to survive.
What is product differentiation?
This Japanese term refers to continuous, incremental improvement across all areas of a firm.
What is Kaizen?
In expectancy theory, this factor measures how strongly someone believes performance will lead to a specific outcome.
What is instrumentality?
This measure of profitability compares operating profit to revenue, showing how efficiently a business turns sales into profit before interest and tax.
What is the operating profit margin?
You're not creating demand — you're capturing it. This approach is what you're using.
What is customer-oriented marketing?
The management approach that integrates environmental and social concerns with business strategy.
What is corporate social responsibility (CSR)?
This profitability ratio is calculated by dividing net profit before interest and tax by capital employed.
What is return on capital employed (ROCE)?
Two competing brands merge their features to create one “power” offering.
What is co-branding?
A strategic move that shifts an entire industry’s structure and value chain to create new demand.
What is a blue ocean strategy?
A form of long-term debt financing that’s unsecured and based on creditworthiness alone.
What is a debenture?
This marketing approach sells the same product using different branding in different regions.
What is global localization?
A company uses this strategy when it cuts costs to compete in price wars.
What is cost leadership?