Business Performance
Business performance is mainly based on financial returns / Profits.
High Quality products yields high profits so quality reviews and consistent quality management is very important.
Business owners should set realistic targets.
Target Working hours - More working hours for experienced staff and less for freshers.
Business considerations : Why one business is more profitable than the other?
Generating profits is very important for any Business..
Higher profit ratio better the Business. Like Apple has high profit ratio.
Low Debt ratio the safer the company is...
Stocks ( company assets ) should be invested wisely.
ATR ( Assets Turn over Ratio ) = Sales / Average total stocks.
ITR ( Inventory Turn over Ratio ) = Cost of Goods sold / Average Inventory cost.
Dividend Payout Ratio ( for Stock holders ) = Total dividends / net income
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S W O T Analysis to whether add new projects
Strengths Weakness - Internal Factors
Opportunities Threats - External Factors
Strength - What can we do well and what advantages do we have..
Weakness - Where are we vulnerable.
Opportunities - What opportunities the project can bring or open up
Threats - can it negatively effect the existing projects.
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T O W S Analysis
O T
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S Max Max
W Min Min
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Max Min Strategies.
Make best use of our strengths and maximize
Work around on our weakness and minimize
Manage all threats
Max strategy - Increase brand reputation and Quality
Min Strategy - Keep investing in technology
If Strategy is not clear then it will not help us move the business in right direction.
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PESTLE Analysis is tool to analyze external factor and how they influence your Business.
Policies by Government that would affect business.
Economy factor - GDP ( Country currency value in global world market ).
Social factors - Changes in Styles / Choices
Technological factors - Innovation / Improvement
Legal factors - Taxation changes
Environment / Ethical factors - Carbon emissions from the company
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