Revision Flashcards
(35 cards)
What is the definition of professionalism
The conduct aims or qualities that characterise or Mark a profession of professional person
What are the attributes to professionalism
Competence
Integrity
Reliability
Flexibility
Respect for others
Self control
What are the two types of fraud
Fraudulent financial reporting (overstating profit)
Misappropriation of assets (theft of cash)
What are the preconditions for fraud
Incentive
Opportunity
Attitude/dishonesty
What are the three elements for an antioxidant fraud strategy ?
Prevention
Detection
Response
What are the two types of external environment
Country environment (otherwise known as macro environment, general environment)
Industry environment (otherwise known as micro environment, industry/market place environment and competitive environment)
What models to use for country and industry environment
Country environment- PESTEL
Industry environment - PORTERS FIVE FORCES
What does PESTEL stand for ?
Political
Economy
Social
Technological
Ecological
Legal
What are the 5 factors for porters 5 forces ?
Power of customer
Power of supplier
Threat of new entrants
Threat of competition
Threat of substituting product
Factors to consider for power of customer (porter 5 forces)
Factors to decide if High or low
-Size of customer (e.g. large global customer)
- A brand or uniqueness in our products
- Customer willing to pay a premium
Words to look out for
- supplier
- vendor
- manufacturer
Things to consider for power of Supplier (porter 5 forces)
Factors to decide whether High or Low ?
- Size of supplier (e.g large global supplier)
- Are we willing to pay any premium
Words to look out for ?
- Supplier
- Vendor
- Manufacturer
What is threat to new entry (ports 5 forces)
What are the barriers to entry are they high or low
- parents
- government approvals
- government licences
- franchises
What is strategic position analysis ?
Anytime a questions mentions “strategic position analysis” we have to talk about;
Macro/country environment
Micro/industry environment
Internal factors
1. Human resource (experience, management competencies, expertise)
2. Financial resource ( profitability, financial position, gearing)
3. IT/Brand (goodwill, online, website)
What does SFA framework stand for
Suitability
Feasibility
Acceptability
When do we use the SFA framework model ?
We use it when we plan to acquire another company (either same country or abroad)
What are the areas with suitability (SFA)
Suitability refers to EXTERNAL factors
Home Country
Target country
Target company
What are the areas within feasibility (SFA)
Feasibility focuses on INTERNAL factors
Human resource & expertise
1. Do we have acquisition experience from the past ?
2. Do we have experience of managing similar business
3. Do we have experience of working in an overseas country
Financial resource
1. Do we have funds to acquire another company
2. Look at gearing ratios
Technology & Brand
What are the areas within acceptability
Focuses of FINANCIALS of target company
Will shareholders accept proposed strategy
1. NPV etc
If target company is based in another country then we have to Consider any cultural differences
Review financial projections/analysis
Is SWOT analysis internal or external ?
Strengths and weaknesses are internal
Opportunities and threats are external
What is TOWS Matrix
It’s like SWOT but combines the 4. Eg
SO - use your strengths to avail opportunities
WO - Remove your weakness to avail opportunities
ST - use your strength to avoid/counter threats
WT - remove your weaknesses and avoid threats
How to know when to use TOWS Matrix ?
Use the TOWS matrix when
- A SWOT analysis will be given or
- You will be required to do a SWOT analysis first
What is corporate parenting and portfolio
This refers to how well the subsidiaries are performing for the parent
Points to consider when evaluating a subsidiary are:
1. Industry status (growth, maturity, decline)
2. Market share % (increasing, maintained, declined)
3. Profit margin % (increasing maintained, declined)
4. BCG assessment (star, cashcow, dog, question mark)
5. Strengths / weakness / primary reason for acquisition
What is the Ansoff growth model
Every company wants to grow. The below are ways for a company to grow
Market development
Diversification
Penetration
Product development
What is mendelows stakeholder matrix
Organisations can divide their stakeholders into 4 groups
Keep satisfied
1. Govenerment
2. Major customers
Key players
1. Shareholders
2. Board of directors
Min effort
1. Minority shareholders
Keep informed
1. Employees
2. Community /society
3. Smaller customer
