MGT 3659 Lecture Notes - Lecture 5: Productivity Software, Balanced Scorecard, Market Capitalization
Document Summary
Chapter 5 competitive advantage, firm performance, and business models. Apple and microsoft: rivals since the 70s. Office suite includes word, excel, powerpoint, etc. By 2000, microsoft was the most valuable company globally. To measure and assess firm performance: accounting profitability, shareholder value creation, economic value creation. Integrative frameworks, combining quantitative data with qualitative assessments: the balanced scorecard, the triple bottom line. Business models how the firm earns revenues. Return on invested capital (roic), return on equity (roe), return on assets (roa), and return on revenue (ror) Cost of goods sold (cogs) / revenue. How efficiently a company can produce a good. How much of each dollar earned is invested in r&d. Selling, general, & administrative expensive / revenue. How much of each dollar earned is invested in sg&a. How much working capital the firm has tied up in its operations. How much of a firm"s revenue are dedicated to cover plant, property, and equipment.
