Chapter 12 Flashcards
(13 cards)
what should a strategy evaluation include?
-benefits and risks
-Strategic, operational and financial implications
-stakeholder perspective
-Quantitative and non-quantitative issue
two types of data analysis?
-financial perspective
-non-financial perspective
key financial performance ratios?
-gross proft margin
-Operating margin
-Return on capital employed
-Current ratio
-Quick ratio
gross profit margin?
(Gross profit/Revenue)*100
Operating profit margin?
(Operating profit/Revenue)*100
current ratio?
Current assets/ Current liability
quick ratio?
(Current asset-inventory) / current liabilities
benchmarking?
it compares performance internally or externally to identify areas of improvement
four types of benchmarking?
-Internal benchmarking
-Competitive Benchmarking
-Activity benchmarking
-generic benchmarking
Internal Benchmarking
Compare across departments or time
Competitive benchmarking
Against direct competitors in the same industry
Activity benchmarking
Same activity, different industries
Generic benchmarking?
Against similar processes regardless of industry
