ACF1200 Lecture Notes - Lecture 7: Balanced Scorecard
2 Aug 2018
School
Department
Course
Professor
Document Summary
Provides the vision of what the business should look like. Explains the business goals, how it will operate and likely outcomes. Components of a business plan include: background (mission statement, goals, marketing (industry, competitors, target market, pricing, promotion, operations (location, management, structure and staf ng, financial projections ( nancing, forecast sales, cash ow, balance sheet, timetable (activities that must be completed) Cannot eliminate uncertainty, not possible to business accurately predict the future. Provides a clear statement of direction and. May use inaccurate, biased or out-dated purpose of the rm. Encourages owners to fully research their business idea. Provides a standard to evaluate performance information. Focusing on investment centres, it is important to be able to assess whether the centre is operating satisfactorily. Management performance within investment centres may be assessed by calculating: Nancial performance and: can encourage managers to deferral of asset replacement focus on short-term. Nancial performance: required rate of return may be dif cult to determine.
