unit 7 Flashcards
mission statement
sets out a businesses overall purpose
vision statement
sets out a businesses aspirations from the future
corperate objectives
medium to long term goals to cordinate the business
examples of corperate objectives
market position , innovation , financial resources
business culture
particular set of attitudes and beleifs
SWOT analysis
technique used to assess a business current runnings
examples of SWOT
S-strong brand name
W-under utilised capacity
O-selling in a growing market
T-change in consumer trends
ADV of swot
low cost , straight forward , encourages managers to think internally and externally
DISADV of swot
difficult when it comes to two sided factors , doesnt offer solutions , requires honest reliable data
balance sheet
financial statement recording assets and liabilities
intangible assetts
do not take physical form
working capital
money available to pay day to day expenses
current assets - current liabilities
ratio analysis
technique used for analysing a businesses financial performance by comparing two pieces of infomation
ROCE , return on capital employed
operating profit / (total equity + non current liabilities ) x 100
current ratio
current assets / current liabilities
Gearing
non-current liabilities / (total equity + non-current liabilities ) x 100
highly geared business
a highly geared business has more than 50% of its capital in loans
inventory turnover
compare the value of inventories with sales
cost of goods sold / average inventories held
inventory days
inventories / cost of sales x 365
receivable days
receivables/revenue x365
payable days
payables / cost of sales x 365
capacity utilisation
extent to which a business uses resources available to it
core competencies
unique selling points of a business
Elkington’s triple bottom line
assesses a business on three factors and the impact on society : profit , people , planet
