what to revise Flashcards
Gearing Ratio Definition
Explores the capital structure of businesses by comparing the proportions of capital raised by debt and equity
Gearing Ratio Calc
Non current liabilities
——————————- x 100
Capital employed (current liabilities - total assets)
Power culture
Central source of power for decision making with few rules and procedures, hence it is a competitive environment generally found in small to medium sized businesses
Role culture
decisions made through rules which are give according to power. Tall hierarchy and long chain of command
Task culture
power to those who can accomplish tasks, teamwork is common
Person culture
many people but not much teamwork, sole purpose is to support
Mission statement
A bride statement describing its purpose and objectives in order to encapsulate its present operations
Corporate objectives
based off mission statement and its the objectives of the business as a whole
Porters Model of Generic strategies measures?
- the size of the market
- the source of competitive advantages
What are the area’s in Porters model of generic strategies called?
- Cost Leader
- Differentiation Leader
- Cost focus
- Differentiation focus
What does Ansoffs Matrix measure?
- Risk between products and markets
What are the area’s in Ansoffs Matrix called
- Market penetration (EM EP)
- Market development (NM EP)
- Product development (EM NP)
- Diversification (NM NP)
Porters five forces are?
- intensity of rivalry
- power of suppliers
- threats from substitutes
- power of customers
- threats of market entry
Time-series analysis (3 year)
add the first, second and third year then divide by three
Time-series analysis (4 year)
add the first, second, third and fourth year. Add the second, third, fourth and fifth year. Then subtract the first answer with the second, then divide by eight.
