Business Administration 2257 Study Guide - Quiz Guide: Swot Analysis, Market Segmentation, Social Enterprise

• School: Western University
• Department: Business Administration
• Course: Business Administration 2257
• Professor: Alexander Miller

Document Summary

Possible swot analysis outcome: questioning of original value proposition and its match to target markets as core competencies can be seen as of more value to different markets. Ratio analysis: technique that enables you to evaluate performance; applied to past or forecasts. Return to shareholder: measures both operating performance & its gearing/leverage. Return on total assets: critical performance ratio measuring operating performance only = efficiency or productivity. Operating profit margin: reflects price you are able to charge, compared to costs you face. Gross profit margin: explains how direct costs of product/service sold (cogs) are controlled. Key asset management ratios: measure efficiency of asset usage compared to sales/turnover. Break-even point: point where business starts making profit; absolute measure usually rises when business grows. Margin of safety: better measure of risk, where break- even is in relation to sales. Financial gearing/leverage: level of borrowing; preferred by bankers to be below.