Hockey stick effect
Elements of Hockey stick effect: The cumulative cash flow from investment Principle: Key determinant of value is planning period of competitive advantage Issues: To the point (M year 7 in figure) when additional cash...
Category: Environment Internal
Common Size Statement
Elements of Common Size Statement: PL or BS statement calculated to Common Size Principle: Determines variance compared to a “key figure” Issues: Time period long enough Applications: To determine and look at trends Source...
Value Based Management
Elements of Value Based Management: Components and structure of Value Based Management ( VBM ) Principle: Value Based Management is the management approach that ensures corporations are run consistently on value (normally; maximizing shareholder value) Issues:...
Key Issues in Strategic Financial Analytical Techniques
Elements of Key Issues in Strategic Financial Analytical Techniques: Relations in Accounting and Financial economics Principle: Accounting and Financial Economics, the analytical techniques in strategic choice Issues: Linkages between the issues mentioned Applications: Determine appropriate...
Organisational Resources -RBV
Elements of Organisational Resources -RBV: The components in RBV Human capital – the amount, breadth and depth of general skills and capabilities achieved by individuals in the organizationIntellectual capital – includes industry specific and...
Boston Consulting group growth-share matrix
Elements of Boston Consulting group growth-share matrix: Products or companies positioned in matrix in relation to their stage in life-cycle Principle: Cash cow – milk and redeploy the cash flow Dog – liquidate or divest...
Ratio List – Profitability, Working Capital/Liquidity, Financial Structure/Investors Criteria, Corporate ratios
With reference to Pyramid of Ratios Financial Level Ratio Abbreviation Where to look/how to calculate Used to Issue Profitability Return On Investment ROI (Net income / Investment) Working Capital/Liquidity Debtors Days (Trade Debtors +...
The pyramid of ratios
Elements of The pyramid of ratios: Left side ~ External rate of returns Right side ~ Internal managerial performance Bottom ~ Sales Ratios Principle: Illustrate the relation and calculation principles of Key Ratios Issues:...
Single and Double loop learning + Triple loop learning
Elements of Single and Double loop learning + Triple loop learning: Single-Loop Learning (Following the Rules) Double-Loop Learning (Changing the Rules) Triple-Loop Learning (Learning About Learning) Principle: Illustrates the steps in the learning process...
