341 terms in Topic5
Analysing Financial Performance
(Maslow - see 1.4).
Financial Management
Analysing Financial Performance
Business/process relying heavily on human labor.
Financial Management
Analysing Financial Performance
(Quality - already covered).
Financial Management
Analysing Financial Performance
Manufacturing custom products one at a time or in small quantities.
Financial Management
Analysing Financial Performance
See Job Production.
Financial Management
Analysing Financial Performance
(Continuous Improvement).
Financial Management
Analysing Financial Performance
Focused improvement activities over short period (days/weeks).
Financial Management
Analysing Financial Performance
(already covered - see 1.4).
Financial Management
Analysing Financial Performance
Regular servicing of equipment to prevent breakdown.
Financial Management
Analysing Financial Performance
Labor time measurement; employee hours worked.
Financial Management
Analysing Financial Performance
Producing goods through processing/assembly.
Financial Management
Analysing Financial Performance
Moving/storing materials in production.
Financial Management
Analysing Financial Performance
Highest inventory quantity before ordering more.
Financial Management
Analysing Financial Performance
Lowest inventory quantity; triggers reordering.
Financial Management
Analysing Financial Performance
Products becoming out-of-date/unusable before sale.
Financial Management
Analysing Financial Performance
Day-to-day activities transforming inputs to outputs.
Financial Management
Analysing Financial Performance
Directing resources to produce goods/services efficiently.
Financial Management
Analysing Financial Performance
Making something as effective/efficient as possible.
Financial Management
Analysing Financial Performance
Indirect production costs not directly tied to product: factory rent, utilities, depreciation, supervision.
Financial Management
Analysing Financial Performance
(see Waste Minimisation).
Financial Management
Analysing Financial Performance
Inventory quantity triggering new order placement.
Financial Management
Analysing Financial Performance
(Economic Order Quantity).
Financial Management
Analysing Financial Performance
Distributing limited resources (budget, equipment, labor, time) across activities/projects.
Financial Management
Analysing Financial Performance
Using resources (materials, energy, labor, capital) productively with minimum waste.
Financial Management
Analysing Financial Performance
Planning/controlling business resources to achieve objectives.
Financial Management
Analysing Financial Performance
Protecting employees from harm.
Financial Management
Analysing Financial Performance
Requirements ensuring workplace safety: equipment standards, procedures, training, protective equipment.
Financial Management
Analysing Financial Performance
Planning when tasks/production occurs.
Financial Management
Analysing Financial Performance
(see Semi-Fixed Costs - 2.2).
Financial Management
Analysing Financial Performance
(Changeover Costs).
Financial Management
Analysing Financial Performance
Manufacturing step producing product start-to-finish.
Financial Management
Analysing Financial Performance
(Inventory Turnover - already covered).
Financial Management
Analysing Financial Performance
Building/maintaining effective supplier partnerships.
Financial Management
Analysing Financial Performance
Manufacturing minimizing environmental/social impact.
Financial Management
Analysing Financial Performance
Tools, equipment, processes used in production.
Financial Management
Analysing Financial Performance
(Under-utilization).
Financial Management
Analysing Financial Performance
Cost per item produced.
Financial Management
Analysing Financial Performance
Discarded materials, inefficiency, rework, excess capacity.
Financial Management
Analysing Financial Performance
Reducing waste in production/operations.
Financial Management
Analysing Financial Performance
Analyzing work methods to improve efficiency.
Financial Management
Analysing Financial Performance
(see Flexible Workforce - 1.4).
Financial Management
Analysing Financial Performance
Increase in currency value relative to another.
Financial Management
Analysing Financial Performance
Financial support provided to eligible individuals: unemployment benefits, disability support, family allowances.
Financial Management
Analysing Financial Performance
Government regulations promoting fair competition, preventing monopolies/unfair practices.
Financial Management
Analysing Financial Performance
Overall market conditions and competitive pressures.
Financial Management
Analysing Financial Performance
Laws safeguarding consumers: product safety, honest information, rights to redress.
Financial Management
Analysing Financial Performance
Measure of average price changes for consumer goods/services.
Financial Management
Analysing Financial Performance
Total expenditure by households on goods/services.
Financial Management
Analysing Financial Performance
Trading one currency for another at market rate.
Financial Management
Analysing Financial Performance
Sustained decrease in general price level.
Financial Management
Analysing Financial Performance
Decrease in currency value relative to another.
Financial Management
Analysing Financial Performance
Increase in real GDP; expansion of economy.
Financial Management
Analysing Financial Performance
Unpredictability in economic conditions; difficulty forecasting.
Financial Management
Analysing Financial Performance
Study of how societies manage scarce resources.
Financial Management
Analysing Financial Performance
Sensitivity of quantity demanded/supplied to price changes.
Financial Management
Analysing Financial Performance
Total number of people working in economy/sector.
Financial Management
Analysing Financial Performance
Laws protecting employee rights: minimum wage, working hours, discrimination protection, health/safety, dismissal proced
Financial Management
Analysing Financial Performance
Protections employees have: fair treatment, safe conditions, minimum wage, non-discrimination, contractual protection.
Financial Management
Analysing Financial Performance
Effects of business on natural environment: emissions, waste, resource use, pollution.
Financial Management
Analysing Financial Performance
Laws/policies preventing environmental damage: pollution control, resource conservation, waste management, climate regul
Financial Management
Analysing Financial Performance
Requirements for acceptable environmental performance: emissions limits, waste handling, energy efficiency.
Financial Management
Analysing Financial Performance
Price of one currency in terms of another.
Financial Management
Analysing Financial Performance
Unexpected external event affecting economy/business: oil price spike, natural disaster, war, pandemic, financial crisis
Financial Management
Analysing Financial Performance
Government use of taxation and spending to influence economy.
Financial Management
Analysing Financial Performance
Official government set exchange rate (not market determined).
Financial Management
Analysing Financial Performance
Market-determined exchange rate; fluctuates based on supply/demand.
Financial Management
Analysing Financial Performance
Trading currencies; market where currencies exchange.
Financial Management
Analysing Financial Performance
Expenditure by government on goods, services, wages, benefits, infrastructure.
Financial Management
Analysing Financial Performance
Total value of goods/services produced in country in period.
Financial Management
Analysing Financial Performance
Protection of people from work-related harm.
Financial Management
Analysing Financial Performance
Cost of borrowing; return on savings.
Financial Management
Analysing Financial Performance
Increase/decrease in borrowing costs.
Financial Management
Analysing Financial Performance
Exchange of goods/services between countries.
Financial Management
Analysing Financial Performance
Market where labor (employees) is traded for wages.
Financial Management
Analysing Financial Performance
Government use of laws to regulate business behavior.
Financial Management
Analysing Financial Performance
Laws enacted by government regulating business/society.
Financial Management
Analysing Financial Performance
Central bank action controlling money supply/interest rates to influence economy.
Financial Management
Analysing Financial Performance
Single supplier of product/service; no competition.
Financial Management
Analysing Financial Performance
Lowest legal wage employers must pay employees.
Financial Management
Analysing Financial Performance
Industry where single supplier most efficient (high infrastructure cost).
Financial Management
Analysing Financial Performance
Market dominated by few large suppliers.
Financial Management
Analysing Financial Performance
Government regulation of prices; setting maximum or minimum prices.
Financial Management
Analysing Financial Performance
Illegal practice where competitors agree on prices.
Financial Management
Analysing Financial Performance
Government control of prices; typically maximum/minimum.
Financial Management
Analysing Financial Performance
Business with no control over price; must accept market price.
Financial Management
Analysing Financial Performance
Government policies protecting domestic industries from foreign competition.
Financial Management
Analysing Financial Performance
Ability to buy goods/services; determined by income and price levels.
Financial Management
Analysing Financial Performance
Limit on quantity of imports allowed.
Financial Management
Analysing Financial Performance
Economic contraction; negative growth, rising unemployment, falling demand.
Financial Management
Analysing Financial Performance
Business sector with government price/conduct regulation.
Financial Management
Analysing Financial Performance
Government rules controlling business behavior.
Financial Management
Analysing Financial Performance
Government agency enforcing regulations.
Financial Management
Analysing Financial Performance
Meeting regulatory requirements; following rules/standards set by government.
Financial Management
Analysing Financial Performance
Limited availability of resources relative to demand.
Financial Management
Analysing Financial Performance
Government payment supporting producers/consumers.
Financial Management
Analysing Financial Performance
Excess supply relative to demand at current price.
Financial Management
Analysing Financial Performance
Tax on imports, making foreign goods more expensive.
Financial Management
Analysing Financial Performance
Mandatory payment to government by individuals/businesses.
Financial Management
Analysing Financial Performance
Reduction in taxes; temporary or permanent.
Financial Management
Analysing Financial Performance
Advances in technology affecting business.
Financial Management
Analysing Financial Performance
Sharing technology knowledge/capabilities between countries/organizations.
Financial Management
Analysing Financial Performance
Statistical method analyzing data over time to identify trends/patterns.
Financial Management
Analysing Financial Performance
Exchange of goods/services between parties/countries.
Financial Management
Analysing Financial Performance
Obstacles to international trade: tariffs, quotas, regulations, transport costs.
Financial Management
Analysing Financial Performance
Group of countries with reduced trade barriers among themselves.
Financial Management
Analysing Financial Performance
Percentage of labor force without work/actively seeking.
Financial Management
Analysing Financial Performance
Global economic system; interconnected markets, trade, finance.
Financial Management
Analysing Financial Performance
Financial Management
Analysing Financial Performance
Ansoff's Matrix (4 strategies), Boston Matrix (4 quadrants), Porter's Five Forces (5 forces), Porter's Strategic Matrix,
Financial Management
Analysing Financial Performance
Globalisation, FDI, MNCs, Trading blocs, Glocalisation, Offshoring, Outsourcing, Global marketing, Cultural adaptation,
Financial Management
Analysing Financial Performance
All 7 accounting ratios (with formulas), Quantitative skills, Transferable skills.
Financial Management
Analysing Financial Performance
The process of comparing actual financial results with budgeted (planned) figures to identify variances, understand thei
Financial Management
Analysing Financial Performance
When a business is unable to continue trading, typically because it cannot pay its debts (insolvency) or because it is n
Financial Management
Analysing Financial Performance
The distinction between profit (an accounting measure of revenue minus costs over a period) and cash (the actual money a
Financial Management
Analysing Financial Performance
Buying existing business/company to gain control.
Financial Management
Analysing Financial Performance
Different strategic approaches to achieve objectives.
Financial Management
Analysing Financial Performance
External factors affecting business: market conditions, competition, regulations, technology, economics, society.
Financial Management
Analysing Financial Performance
Long-term plan achieving business objectives.
Financial Management
Analysing Financial Performance
Where business stands relative to competitors.
Financial Management
Analysing Financial Performance
Approach to competing effectively.
Financial Management
Analysing Financial Performance
Critical evaluation; identifying strengths and weaknesses.
Financial Management
Analysing Financial Performance
General, broad business direction; aspirational statements.
Financial Management
Analysing Financial Performance
Values, beliefs, behaviors characteristic of organization.
Financial Management
Analysing Financial Performance
Specific, measurable targets business aims to achieve.
Financial Management
Analysing Financial Performance
Business responsibility to stakeholders beyond profit maximization.
Financial Management
Analysing Financial Performance
Overall long-term plan achieving corporate objectives.
Financial Management
Analysing Financial Performance
Systematic evaluation comparing benefits and costs of decision/project.
Financial Management
Analysing Financial Performance
Choice between alternatives; selecting one option from options.
Financial Management
Analysing Financial Performance
Process of choosing between alternatives.
Financial Management
Analysing Financial Performance
Systematic method assisting decision-making.
Financial Management
Financial Ratios and Investment Appraisal
Strategy protecting existing position against threats.
Financial Management
Financial Ratios and Investment Appraisal
Making product/business distinctly different from competitors.
Financial Management
Financial Ratios and Investment Appraisal
Competing through unique, valued product features.
Financial Management
Financial Ratios and Investment Appraisal
Where business is heading; long-term path.
Financial Management
Financial Ratios and Investment Appraisal
Unique organizational strengths difficult for competitors to copy.
Financial Management
Financial Ratios and Investment Appraisal
Advantages of operating in multiple markets/products.
Financial Management
Financial Ratios and Investment Appraisal
Organization divided into semi-autonomous divisions by: product, geography, market, customer type.
Financial Management
Financial Ratios and Investment Appraisal
Organization's ability to adapt, change, improve over time.
Financial Management
Financial Ratios and Investment Appraisal
Profit exceeding cost of capital; true economic profit.
Financial Management
Financial Ratios and Investment Appraisal
Monitoring external environment for opportunities/threats.
Financial Management
Financial Ratios and Investment Appraisal
Concept that costs decrease as volume increases (learning effect).
Financial Management
Financial Ratios and Investment Appraisal
Projection of future financial performance.
Financial Management
Financial Ratios and Investment Appraisal
Specific financial targets; profitability, growth, returns goals.
Financial Management
Financial Ratios and Investment Appraisal
Framework analyzing competitive intensity.
Financial Management
Financial Ratios and Investment Appraisal
Competing by serving specific market segment well.
Financial Management
Financial Ratios and Investment Appraisal
Vertical integration moving toward customer; acquiring downstream business.
Financial Management
Financial Ratios and Investment Appraisal
Plan for specific business function (HR, marketing, operations, finance).
Financial Management
Financial Ratios and Investment Appraisal
Identifying difference between current position and desired position (goal).
Financial Management
Financial Ratios and Investment Appraisal
Corporate strategy for international/global operations.
Financial Management
Financial Ratios and Investment Appraisal
Increase in business size measured by: revenue, profit, market share, employee count, asset value.
Financial Management
Financial Ratios and Investment Appraisal
Direction of growth strategy; how business will expand.
Financial Management
Financial Ratios and Investment Appraisal
Merging with competitor at same supply chain level.
Financial Management
Financial Ratios and Investment Appraisal
Putting strategy/plan into action; executing decisions.
Financial Management
Financial Ratios and Investment Appraisal
Growth through acquisition, merger, takeover.
Financial Management
Financial Ratios and Investment Appraisal
Combining organizations/functions; merger of entities.
Financial Management
Financial Ratios and Investment Appraisal
Plan developed based on deliberate analysis and decision-making.
Financial Management
Financial Ratios and Investment Appraisal
Evaluation of organization's internal resources/capabilities.
Financial Management
Financial Ratios and Investment Appraisal
Sharing information/messages within organization.
Financial Management
Financial Ratios and Investment Appraisal
Researching market/customers before major business decisions.
Financial Management
Financial Ratios and Investment Appraisal
Systematic approach capturing, storing, sharing organizational knowledge.
Financial Management
Financial Ratios and Investment Appraisal
Organization systematically learning from experience, improving capability.
Financial Management
Financial Ratios and Investment Appraisal
Laws and regulations affecting business operations.
Financial Management
Financial Ratios and Investment Appraisal
Goals spanning multiple years (typically 3+ years).
Financial Management
Financial Ratios and Investment Appraisal
Organizational hierarchy showing reporting relationships.
Financial Management
Financial Ratios and Investment Appraisal
Expanding into different geographic/customer markets.
Financial Management
Financial Ratios and Investment Appraisal
(Ansoff).
Financial Management
Financial Ratios and Investment Appraisal
Where business stands in market relative to competitors.
Financial Management
Financial Ratios and Investment Appraisal
Combination of two companies into single entity.
Financial Management
Financial Ratios and Investment Appraisal
Process of discussing with others to reach agreement.
Financial Management
Financial Ratios and Investment Appraisal
Obligations due >12 months.
Financial Management
Financial Ratios and Investment Appraisal
Specific, measurable targets to be achieved.
Financial Management
Financial Ratios and Investment Appraisal
Achieving goals with minimum resources; effectiveness of operations.
Financial Management
Financial Ratios and Investment Appraisal
Short-term target for daily/weekly operations.
Financial Management
Financial Ratios and Investment Appraisal
Favorable situation offering potential benefit/growth.
Financial Management
Financial Ratios and Investment Appraisal
Growth through internal development, not acquisition.
Financial Management
Financial Ratios and Investment Appraisal
Formal arrangement of positions, reporting relationships, authority.
Financial Management
Financial Ratios and Investment Appraisal
(already covered - see 3.4).
Financial Management
Financial Ratios and Investment Appraisal
Market in different country from home base.
Financial Management
Financial Ratios and Investment Appraisal
Time required to recover initial investment from cash flows.
Financial Management
Financial Ratios and Investment Appraisal
Measurable metric assessing business/individual performance.
Financial Management
Financial Ratios and Investment Appraisal
Systematic assessment of business/individual performance.
Financial Management
Financial Ratios and Investment Appraisal
Tangible assets for business operations: buildings, equipment, vehicles, materials, technology.
Financial Management
Financial Ratios and Investment Appraisal
Formal document outlining how to achieve objectives.
Financial Management
Financial Ratios and Investment Appraisal
Process of deciding future actions to achieve objectives.
Financial Management
Financial Ratios and Investment Appraisal
Government systems, policies, stability affecting business.
Financial Management
Financial Ratios and Investment Appraisal
Five forces that determine how competitive and profitable an industry is.
Financial Management
Financial Ratios and Investment Appraisal
(Generic Strategies).
Financial Management
Financial Ratios and Investment Appraisal
Degree to which demand changes with price.
Financial Management
Financial Ratios and Investment Appraisal
(Ansoff).
Financial Management
Financial Ratios and Investment Appraisal
Strategy reducing business scope/operations; cutting back.
Financial Management
Financial Ratios and Investment Appraisal
Probability of negative outcome with quantifiable consequences.
Financial Management
Financial Ratios and Investment Appraisal
Systematic process identifying and evaluating risks.
Financial Management
Financial Ratios and Investment Appraisal
Systematic approach minimizing negative impact of risks.
Financial Management
Financial Ratios and Investment Appraisal
Making satisfactory decision rather than optimal.
Financial Management
Financial Ratios and Investment Appraisal
Developing alternative future scenarios and responses.
Financial Management
Financial Ratios and Investment Appraisal
Examining how changes in key variables affect outcomes/decisions.
Financial Management
Financial Ratios and Investment Appraisal
Goal achieving within 1 year; operational/tactical targets.
Financial Management
Financial Ratios and Investment Appraisal
Comprehensive assessment of current business position.
Financial Management
Financial Ratios and Investment Appraisal
Maintaining current position; not growing or shrinking.
Financial Management
Financial Ratios and Investment Appraisal
Selecting strategy from alternatives.
Financial Management
Financial Ratios and Investment Appraisal
Long-term, major-impact decision affecting business direction.
Financial Management
Financial Ratios and Investment Appraisal
Competitors with similar strategies and target markets.
Financial Management
Financial Ratios and Investment Appraisal
Long-term direction and aspiration; where business wants to be.
Financial Management
Financial Ratios and Investment Appraisal
Process of developing, implementing, evaluating strategy.
Financial Management
Financial Ratios and Investment Appraisal
Long-term (3+ year) goal driving business direction.
Financial Management
Financial Ratios and Investment Appraisal
Process of developing long-term strategy.
Financial Management
Financial Ratios and Investment Appraisal
Where business stands strategically relative to objectives and competition.
Financial Management
Financial Ratios and Investment Appraisal
Business reaction to external changes/opportunities/threats.
Financial Management
Financial Ratios and Investment Appraisal
(SWOT).
Financial Management
Financial Ratios and Investment Appraisal
Long-term plan achieving objectives.
Financial Management
Financial Ratios and Investment Appraisal
(see Strengths - SWOT).
Financial Management
Financial Ratios and Investment Appraisal
(Porter's Five Forces).
Financial Management
Financial Ratios and Investment Appraisal
A snapshot of a business's internal strengths and weaknesses, and external opportunities and threats.
Financial Management
Financial Ratios and Investment Appraisal
Combined effect greater than sum of parts.
Financial Management
Financial Ratios and Investment Appraisal
Short-term, operational-level decision.
Financial Management
Financial Ratios and Investment Appraisal
Medium-term (1-3 year) goal supporting strategic objectives.
Financial Management
Financial Ratios and Investment Appraisal
Acquiring control of business through purchasing shares/assets.
Financial Management
Financial Ratios and Investment Appraisal
Operating at multiple supply chain levels but not fully controlling all.
Financial Management
Financial Ratios and Investment Appraisal
Growth focused on specific segments/markets/products.
Financial Management
Financial Ratios and Investment Appraisal
Using technology advances to create competitive advantage.
Financial Management
Financial Ratios and Investment Appraisal
(SWOT).
Financial Management
Financial Ratios and Investment Appraisal
(Porter's Five Forces).
Financial Management
Financial Ratios and Investment Appraisal
Plan to restore business from poor performance to viability.
Financial Management
Financial Ratios and Investment Appraisal
External factors business cannot influence: economic conditions, competitor actions, natural disasters, regulation, tech
Financial Management
Financial Ratios and Investment Appraisal
(already covered - see 1.3).
Financial Management
Financial Ratios and Investment Appraisal
Combining firms at different supply chain levels. **Forward integration:** toward customer (manufacturer acquiring retai
Financial Management
Financial Ratios and Investment Appraisal
(Strategic).
Financial Management
Financial Ratios and Investment Appraisal
(SWOT).
Financial Management
Financial Ratios and Investment Appraisal
Approach benefiting multiple stakeholders; mutually beneficial.
Financial Management
Financial Ratios and Investment Appraisal
Situation where gain for one equals loss for another.
Financial Management
Improving Cash Flow and Profitability
Financial Management
Improving Cash Flow and Profitability
- ✓ Ansoff's Matrix (all 4 strategies).
Financial Management
Improving Cash Flow and Profitability
A set of financial techniques used to evaluate whether a capital investment project is financially worthwhile, comparing
Financial Management
Improving Cash Flow and Profitability
An investment appraisal method that calculates how long it takes for the cumulative cash inflows from an investment to r
Financial Management
Improving Cash Flow and Profitability
An investment appraisal method that expresses the average annual profit from an investment as a percentage of the initia
Financial Management
Improving Cash Flow and Profitability
An investment appraisal method that discounts all future cash flows back to their present value using a discount rate, t
Financial Management
Improving Cash Flow and Profitability
A technique that adjusts future cash flows to their present value by applying a discount rate, reflecting the principle
Financial Management
Improving Cash Flow and Profitability
Obstacles reducing international trade: tariffs (taxes), quotas (quantity limits), regulations, local content requiremen
Financial Management
Improving Cash Flow and Profitability
Communication difficulty from using different languages.
Financial Management
Improving Cash Flow and Profitability
Availability of cash/liquid assets; ability to meet obligations.
Financial Management
Improving Cash Flow and Profitability
Money paid by businesses and individuals to governments through various taxes (corporation tax, income tax, VAT, etc.),
Financial Management
Setting Financial Objectives and Sources of Finance
Arrangement where employees receive portion of company profits.
Financial Management
Setting Financial Objectives and Sources of Finance
Obstacles preventing business creation: lack of capital, insufficient skills, risk aversion, family obligations, market
Financial Management
Setting Financial Objectives and Sources of Finance
Intense market competition making startup success difficult.
Financial Management
Setting Financial Objectives and Sources of Finance
Business objective making highest possible profit.
Financial Management
Setting Financial Objectives and Sources of Finance
Business objective earning sufficient profit while pursuing other goals.
Financial Management
Setting Financial Objectives and Sources of Finance
Investment in early-stage businesses with growth potential.
Financial Management
Setting Financial Objectives and Sources of Finance
Raising capital through small contributions from many people, typically via online platforms.
Financial Management
Setting Financial Objectives and Sources of Finance
Reduction in asset value over time due to use, wear, age, obsolescence.
Financial Management
Setting Financial Objectives and Sources of Finance
Money actually entering minus leaving business.
Financial Management
Setting Financial Objectives and Sources of Finance
Arrangement allowing account to go negative to agreed limit.
Financial Management
Setting Financial Objectives and Sources of Finance
Plowing back company profits into business rather than distributing to shareholders.
Financial Management
Setting Financial Objectives and Sources of Finance
Profits kept in business rather than distributed to shareholders.
Financial Management
Setting Financial Objectives and Sources of Finance
Security giving right (not obligation) to buy company shares at set price within period.
Financial Management
Setting Financial Objectives and Sources of Finance
Technique determining minimum sales needed to cover all costs.
Financial Management
Setting Financial Objectives and Sources of Finance
The exact number of sales needed to cover all costs — neither profit nor loss.
Financial Management
Setting Financial Objectives and Sources of Finance
Graph showing relationship between sales volume, costs, revenue, profit.
Financial Management
Setting Financial Objectives and Sources of Finance
Financial plan allocating resources for specific period (usually year).
Financial Management
Setting Financial Objectives and Sources of Finance
Monitoring actual performance against budgets; taking corrective actions.
Financial Management
Setting Financial Objectives and Sources of Finance
Process of creating budgets; planning financial resources.
Financial Management
Setting Financial Objectives and Sources of Finance
Financial plan showing anticipated cash inflows/outflows.
Financial Management
Setting Financial Objectives and Sources of Finance
Movement of money in/out of business.
Financial Management
Setting Financial Objectives and Sources of Finance
Projection of future cash movements over period (monthly, quarterly).
Financial Management
Setting Financial Objectives and Sources of Finance
Key factors changing cash-flow: sales volume, payment terms, seasonal variation, supplier payments, capital spending, lo
Financial Management
Setting Financial Objectives and Sources of Finance
Insufficient cash to meet obligations despite profitability.
Financial Management
Setting Financial Objectives and Sources of Finance
Competitor pricing, promotion, product, distribution affecting demand.
Financial Management
Setting Financial Objectives and Sources of Finance
How much each unit sold contributes towards covering fixed costs (and then profit).
Financial Management
Setting Financial Objectives and Sources of Finance
Contribution as percentage of sales price.
Financial Management
Setting Financial Objectives and Sources of Finance
How costs change with activity levels.
Financial Management
Setting Financial Objectives and Sources of Finance
Classification of business costs.
Financial Management
Setting Financial Objectives and Sources of Finance
Expenses incurred making products: materials, direct labor, manufacturing overhead.
Financial Management
Setting Financial Objectives and Sources of Finance
(covered in 1.3).
Financial Management
Setting Financial Objectives and Sources of Finance
**Fixed costs:** unchanged by activity (rent, salaries, insurance). **Variable costs:** change with activity (materials,
Financial Management
Setting Financial Objectives and Sources of Finance
Factors affecting demand forecasts: consumer trends, economic factors, competitor actions, seasonality, marketing.
Financial Management
Setting Financial Objectives and Sources of Finance
Macro-economic factors affecting demand: GDP growth, unemployment, inflation, interest rates, exchange rates.
Financial Management
Setting Financial Objectives and Sources of Finance
Expenses unchanged by production/sales volume.
Financial Management
Setting Financial Objectives and Sources of Finance
Predicting future sales based on: historical data, market analysis, trends, competitor actions, planned marketing.
Financial Management
Setting Financial Objectives and Sources of Finance
Setting budgets based on previous year's actual figures, adjusted for expected changes.
Financial Management
Setting Financial Objectives and Sources of Finance
How many extra sales you have above break-even — your cushion against disaster.
Financial Management
Setting Financial Objectives and Sources of Finance
Income from selling products/services.
Financial Management
Setting Financial Objectives and Sources of Finance
Prediction of future sales volume/value.
Financial Management
Setting Financial Objectives and Sources of Finance
Income from product/service sales.
Financial Management
Setting Financial Objectives and Sources of Finance
Quantity of products sold in period.
Financial Management
Setting Financial Objectives and Sources of Finance
Costs with both fixed and variable components.
Financial Management
Setting Financial Objectives and Sources of Finance
Expenses changing with production/sales volume.
Financial Management
Setting Financial Objectives and Sources of Finance
Building budgets from zero; justifying each expense without reference to previous budgets.
Financial Management
Setting Financial Objectives and Sources of Finance
(Liquid Capital Ratio).
Financial Management
Setting Financial Objectives and Sources of Finance
(Statement of Financial Position).
Financial Management
Setting Financial Objectives and Sources of Finance
Time from cash outlay for materials to cash receipt from sales.
Financial Management
Setting Financial Objectives and Sources of Finance
Actual amount of cash available to business.
Financial Management
Setting Financial Objectives and Sources of Finance
Business assets convertible to cash within 12 months.
Financial Management
Setting Financial Objectives and Sources of Finance
Business obligations due within 12 months.
Financial Management
Setting Financial Objectives and Sources of Finance
Liquidity measure comparing current assets to current liabilities.
Financial Management
Setting Financial Objectives and Sources of Finance
Average time to collect payment from customers.
Financial Management
Setting Financial Objectives and Sources of Finance
Strategies for managing business borrowing.
Financial Management
Setting Financial Objectives and Sources of Finance
Profit; bottom-line income after expenses.
Financial Management
Setting Financial Objectives and Sources of Finance
Situation where business has insufficient funds to meet obligations.
Financial Management
Setting Financial Objectives and Sources of Finance
Using debt financing to increase returns on equity.
Financial Management
Setting Financial Objectives and Sources of Finance
Overall financial health of business at point in time.
Financial Management
Setting Financial Objectives and Sources of Finance
Relationship between financial figures measuring performance/position.
Financial Management
Setting Financial Objectives and Sources of Finance
Documents reporting financial position/performance: balance sheet, income statement, cash-flow statement.
Financial Management
Setting Financial Objectives and Sources of Finance
Measure of financial leverage; proportion of borrowing vs equity.
Financial Management
Setting Financial Objectives and Sources of Finance
Sales minus cost of goods sold (direct production costs).
Financial Management
Setting Financial Objectives and Sources of Finance
Gross profit as percentage of revenue.
Financial Management
Setting Financial Objectives and Sources of Finance
(Profit & Loss Account).
Financial Management
Setting Financial Objectives and Sources of Finance
Inability to pay debts when due.
Financial Management
Setting Financial Objectives and Sources of Finance
Ability to service debt from profits.
Financial Management
Setting Financial Objectives and Sources of Finance
Ability to meet short-term financial obligations; having cash/convertible assets available.
Financial Management
Setting Financial Objectives and Sources of Finance
Financial ratio measuring ability to pay short-term debts.
Financial Management
Setting Financial Objectives and Sources of Finance
(Profit for the Year).
Financial Management
Setting Financial Objectives and Sources of Finance
Net profit as percentage of revenue.
Financial Management
Setting Financial Objectives and Sources of Finance
Profit from normal business operations (excluding interest/tax).
Financial Management
Setting Financial Objectives and Sources of Finance
Operating profit as percentage of revenue.
Financial Management
Setting Financial Objectives and Sources of Finance
(Accounts Payable).
Financial Management
Setting Financial Objectives and Sources of Finance
Ability to generate profit; degree of profit earned.
Financial Management
Setting Financial Objectives and Sources of Finance
(see Income Statement).
Financial Management
Setting Financial Objectives and Sources of Finance
Examining financial statement ratios for insights.
Financial Management
Setting Financial Objectives and Sources of Finance
Profitability relative to capital invested.
Financial Management
Setting Financial Objectives and Sources of Finance
Profitability relative to shareholder investment.
Financial Management
Setting Financial Objectives and Sources of Finance
Profit/gains realized from investment/capital employed.
Financial Management
Setting Financial Objectives and Sources of Finance
(see Income Statement).
Financial Management
Setting Financial Objectives and Sources of Finance
(see Balance Sheet).
Financial Management
Setting Financial Objectives and Sources of Finance
Long-term ability to meet all financial obligations.
Financial Management
Setting Financial Objectives and Sources of Finance
(Inventory Valuation).
Financial Management
Setting Financial Objectives and Sources of Finance
Current assets minus current liabilities; funds for day-to-day operations.
Financial Management
Setting Financial Objectives and Sources of Finance
Strategies optimizing current assets/liabilities for operational efficiency.
Financial Management
Setting Financial Objectives and Sources of Finance
Removing asset from books when deemed worthless.
Financial Management
Setting Financial Objectives and Sources of Finance
Using technology/machines for tasks traditionally done by humans.
Financial Management
Setting Financial Objectives and Sources of Finance
Manufacturing specified quantity of identical products in groups.
Financial Management
Setting Financial Objectives and Sources of Finance
Process step limiting overall production capacity.
Financial Management
Setting Financial Objectives and Sources of Finance
Plans/processes ensuring organization continues operating during disruptions.
Financial Management
Setting Financial Objectives and Sources of Finance
(Cellular Manufacturing).
Financial Management
Setting Financial Objectives and Sources of Finance
(Kaizen).
Financial Management
Setting Financial Objectives and Sources of Finance
Rising long-run average costs despite increased production.
Financial Management
Setting Financial Objectives and Sources of Finance
Achieving output with minimum resources.
Financial Management
Setting Financial Objectives and Sources of Finance
(see Flexible workforce - 1.4).
Financial Management
Setting Financial Objectives and Sources of Finance
Outside factors affecting production: supplier availability, energy prices, labor availability, regulations, technology
Financial Management
Setting Financial Objectives and Sources of Finance
Percentage of products/services failing to meet standards.
Financial Management
Setting Financial Objectives and Sources of Finance
(Continuous Production).
Financial Management
Setting Financial Objectives and Sources of Finance
Predicting future production needs based on: demand forecasts, inventory levels, supplier lead times.
Financial Management
Setting Financial Objectives and Sources of Finance
(Intangible Asset).
Financial Management