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BUSS 3
Corporate objectives and strategies:

A business will have medium to long term company wide goals known as corporate objectives. These depend on:
· Ownership
· Circumstances
· Personality of CEO
Corporate objectives might be:
· Survival
· Maximising shareholder value
· Profit
· Market standing e.g. high market…

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Balance Sheet for
"name" as at "date"

Fixed Assets More than one year

Current Assets Less than one year

Stock Ordered in increasing order
of liquidity

Debtors

Cash

Current Liabilities Less than one year

Overdraft

Creditors

Net current assets Current Assets - Current
Liabilities

Long term liabilities More than one…

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Les Expenses ( )
s

Operating profit

Les Financing costs ( )
s

Exceptional items

Net profit before
tax

Les Tax (%) ( )
s

Net profit after tax

Les Dividends ( )
s

Retained profit


By law, all limited companies need to file accounts with company's house.

Net profit…

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Ratio analysis is the process of comparing figures in the profit and loss account to give an indication of proportion. It eliminates issues
where figures may be affected by external factors, and allows us to compare.




Liquidity ratios show the firm's ability to pay off it's debts. These include
current…

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· Dividend yield shows the percentage in dividends of the original cost of the share.

Financial strategies:

A business must raise finance:
· Suppliers can offer credit repayment
· A business can factor its debt
· Selling stock (does not have to be repaid)
· Retained profit
· Sale of…

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Net present value takes into account the time value of money. It shows the total worth of
the investment, based on the decreased value of cash in the future due to inflation. It is calculate using discount factors given in the exam.
· Looks at opportunity cost of money
·…

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· Tells the firm about market share

Once a business has identified which market it's operating in, it can begin analysing the market. This allows it to set marketing objectives
and strategies and determine the future marketing plan.

Qualitative market analysis:
· Focus groups
· In depth interviews
· Opinion…

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Ansoff's matrix is a marketing tool used for growth. It shows the options depending on the markets and products.


Existing New Product
Product

Existing Market Market Product
penetration development

New Market Market Diversification
development


Market penetration is a strategy to increase sales of an existing product.

Product development is where…

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Integration is when 2 or more businesses merge/takeover/acquisition.

Vertical integration is where firms of the same industry but in different production stages merge.
· Backward vertical integration is where a firm merges with/takes over its supplier.
· Forward vertical integration is where a firm merges with/takes over its customer.

Conglomerate…

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· ARR
· Net Present Value
There are also qualitative factors:
· Suitability of site
· Customers
· Government perks e.g. Brazil offer cheap labour force to TNC Fiat if they located there
· Location of supplier
· Infrastructure
· Labour workforce
The optimal solution takes a balance between quantitative…

Comments

Matthew Goring

brilliant document that puts everything for BUSS3 together!

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