Business Administration 2257 Study Guide - Final Guide: Cash Flow, Fixed Asset, Cash Management
2 Mar 2016
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Product life cycle: intro, growth, maturity, decline. Promo: pick message, fit the budget, which media why: pull strategy: targets end consumer; they"re demand pulls through distribution chain, push strategy: target retailers and members of distribution who push it through. For price consider the 3 c"s: cost, competition, consumer willingness: skim: high price to cover cost early, then lower it, penetration: low to attract high market share. Items to include: future, cash & different. Inflows outflows = differential cash flow: don"t include financing, non-cash, interest costs, or. Allocation costs: cannibalization of sales are negative inflows, savings of costs are negative outflows. Working capital accounts: inventory = (diff cogs/360) x days, a/p = (diff cogs/360) x days. Roi & payback: roi = diff cash flow/investments, payback = investments/diff cash flow o o o. Do high & low and compare to hurdle rates. Roi hurdle: interest rates; also want it to be greater than roe. See the financial effect of your decision.
