Business Administration 2257 Study Guide - Final Guide: Sunk Costs, Internal Financing, Contribution Margin
9 May 2016
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Role, goals, constraints (qualitative and quantitative, potential obstacles) Outline necessary decision and recommendations (wondered, wanted to: understand the organization (1. 5 hours) Business size-up (45 min): industry/environment analysis, consumer, competitor, corporate capabilities. Financial size-up (45 min): past long analysis: statement of cash flows, ratio analysis, contribution analysis: access future opportunities/decision (1 hour) Quantitative: differential, contribution, breakeven, cash budgeting, sensitivity analysis. Marketing (push vs. pull strategy) depend on environment, company, customers, competitors. New product launch, pricing (cost behavior analysis): do contribution, breakeven, sub-unit, cost-price analysis. New product, expansion, fit within industry, new plan or revise promotion plan: do marking analysis. Experiencing cash flow problems: do cash budget analysis. Cash management issues, new financing required, current financial position: do statement of cash flow analysis. Do ratio analysis after scf is analyzed, understand the past, access profitability. Access future opportunity: differential analysis: evaluate effectiveness of decision/overall strategy (1 hour) Projected income statement (changes in profitability) and balance sheet (expose financing requirements)
