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- 获赠鲜花
- 2 朵
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- 100 金币
- 注册时间
- 2006-3-26
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虽然知道离Busiess020 的最后考试还有一段时间。但是贴出来给大家先有个映像,别到考试的时候抱佛脚。我还会陆续贴出History028E的去年考试卷子。( u% z3 h) X4 m5 _. C) {, s1 _
' _3 Z+ e6 P1 Z! `+ k* f" {, U aGM Overview
4 f2 M, c3 f, \- Y0 N• Role, Timing, Issues/Decisions, C&Cs
3 {/ I3 b- L5 a$ _9 D _" N• Objectives
) R; F2 G: @+ s/ Y7 E8 D– What do we “WANT” to do?
" H- J/ r L' ]9 `9 y! ?2 [• External Analysis! Y4 O: T3 [; N5 s$ f% @
– What do we “NEED” to do?2 m4 W: Q4 ]- k+ j+ w S
– PEST, Consumer, Competition, Trade$ c8 d! ^" a1 k$ [8 W+ m a
• opportunities & threats
. Q5 c' n* @3 x% _" E– IMPLICATIONS: KSFs/ o$ }1 Y4 C. B
• Internal Analysis
# A* U. O- U+ r' N4 {– What “CAN” we do?' r( n6 N; N7 g5 K
– Finance, Marketing, Ops, HR5 O3 {2 H( u! P% _' p
• abilities, strengths & weaknesses
- \6 l4 B/ R3 a- [. ]; @. H2 I' |) p# O' j– IMPLICATIONS: KSFs, CORPORATE CAPABILITIES' X) E2 y2 {" Y( M6 m. r
) v. Z3 h- Y4 r% t7 \ w, i• Alternative Evaluation* g) E" M. V, Q" f1 `' M
– What are the options?$ H- `3 l7 k) N- C/ s9 K! R W
– Evaluate the pros & cons of the options
$ O: j6 k6 Y: |7 j8 Q3 k) I; X! I– How does this option “FIT”?
- f6 d8 p$ V2 `/ |– (you may be able to eliminate options based exclusively on the poor “FIT”qualitatively - if so, make sure you explain why this option was nixed)
& Q( P9 z% m4 T; _! x– Financial Feasibility (of AT LEAST 2-3 options that might “work”) % ~2 Q- H M6 O8 w0 u
" W! i @, l: X3 a& [/ `
• Decision
2 J) I2 N3 p; ]– Justify why you chose a particular option(s).9 V+ y- {3 X2 z- x$ u
– YOU SHOULD BE CONVINCING) E( v. F9 v7 Y5 X0 [( b
• Which strategy best meets the firm’s objectives?
1 z* a5 C O0 D0 _ N: \9 x3 R+ J• Does it satisfy the personal objectives as well?
: y( W+ p# [, m% L3 I7 @3 V- L• Have you addressed the cons of the chosen alternative?
. }1 o, U. `9 U: ?2 w' \3 w5 ~2 g• Is this decision consistent with the analysis you’ve done? EXPLAIN! (FITS)
! g1 [% V# X2 v0 f6 Y2 S• Why NOT the other options?' K1 _( V7 F$ m. J2 q
• How does this choice affect Finance, Marketing, Ops and HR? What changes* N! [" A" e$ N7 S: B( E
need to be made?/ } N- X( r9 r. G
+ H- N* I, E0 u• Action Plan" E- ?* u# \9 j: b5 I% y
• Map out a clear and precise implementation plan which includes;
6 W! R6 D; S" m. j2 }. G– details which address what steps you have to take to implement your+ o' S( @! A3 i7 X% r$ u& M7 h+ g2 E
decision. C# k* V: d! N, j
– details about timing9 I* O4 ^- n% j, ]$ L+ U
– details about WHO will be responsible for accomplishing the ‘task’
& l) M+ l1 a2 s5 ~) H/ ?% R; n0 p– how will you follow-up your plan (measure success)
) L1 S* T$ [6 h– make sure to consider both the short term and long term
X9 W' B( Q! s3 z7 h* j
9 E, k5 T' N! e$ h' ]. EFirm Valuation
/ u* i9 c2 I" F- c• Used to help managers determine the “price” of a company.' T) D; t0 _& t2 v. v
• 3 methods of valuing a firm;
& C$ e9 h1 O% [' F" ?2 w' u– Net Book Value; u; N- y& O/ n* S/ c/ H" k+ ?3 b N
– Economic Appraisal
; X) Z7 e8 s1 C6 S, F/ A4 P– Capitalization of Earnings
) j' s$ v, m1 }/ f% V% M• Using all 3 methods (if possible) helps us to determine a RANGE of what the
/ N$ c Z5 z0 j8 q4 Vcompany is worth.
: ^$ k9 I- A5 a5 E• THINK!!! What are you really selling? Will anyone pay for it? How much will they pay???
# n$ B( r. D/ i1 R& H! q* G( j+ W" X& F, C* z( @6 P/ |
Net Book Value (NBV)
, N- b! g' ^" P8 f3 }' E– Total Assets - Total Liabilities2 s7 A2 w2 w9 g- Q% q
• a.k.a.. the equity
8 w' b: X& \7 ]9 l! C2 i– Does not account for the present market value of the assets$ I# D, J3 O+ X, v5 }
– Calculated using the most recent given balance sheet5 D% }3 T+ r0 M; S3 H0 W
– Preferred method for banks, creditors, and/or buyers who are interested in selling off the assets of the business: w& t; M. O) ]7 |0 f
; r6 @2 j. A$ E0 G8 C Economic Appraisal (EA), q& m4 M: U) [$ n9 {; a$ ]
– Similar to NBV, but tries to reflect the current market value of the assets6 n5 X' J3 P( P" E5 a
– Total Appraised Assets – Total Liabilities
U+ k1 U. z5 M& b– Preferred by buyers who are interested in a company for its assets1 K$ x& j2 X' `5 ? b6 B
3 V- ]! \; f: u3 M" P1 n
Capitalization of Earnings (CE)
) p8 v: s8 s' K H; j– Focuses on the I/S instead of the B/S/ p3 q' W" s, m2 h
• Attempt to value the company in terms of the future income it may provide.
0 I, Q. k, o2 Q* E$ K% b– NPAT * P/E ratio = value
8 V) _- W6 |, H– Must evaluate two different earnings figures (to determine risk & range)
6 a4 @. K9 W/ k3 ~0 {- l• Assuming changes (projected statement)+ d% t# B) W+ G3 Q: o$ _8 d
• Assuming no changes (current given I/S)
0 @6 c& @0 _) K# g; }7 l– Select a reasonable P/E multiple
5 R- {# A2 K' |/ I1 g; I, n5 D– Preferred by buyers interested in the ongoing operation of the company (i.e.taking over as management)& M+ `+ s; S0 y, N6 O4 A
0 \# B! y" z7 p" {0 t• P/E Multiple
* t- T% P- Y( O" Y– Rules of thumb;6 s! W( P4 ]5 h, _
• Mature industries with stable earnings tend to have multiples
; O/ t: L7 r5 W& sfrom 5 to 15.
. L; S/ ]: a2 j: L7 A# i• High growth industries tend to have multiples exceeding 20.
, W# Z+ m* o, ?• “Growth is good; risk is rotten!”3 a, o0 t' ]7 d; s
– growth increases a multiple
2 w1 H T+ p, k6 X5 W– risk decreases a multiple
$ Q& b) X! w/ Q0 ~5 j% v/ C
! D; q- d! i/ ]; aTheir Associated Ratios
. e8 D; G, f8 \8 I0 S. x1 m/ i) Q• Profitability;
+ ?) ? P( e0 x; a– Business goal - to make $$
. y; R0 n. D E4 g9 t: z4 x2 K– Ratios measures how much money we had to spend to make $X in sales
, K4 a1 t! A9 L4 d, i• Stability;
7 o9 E2 s0 m. P– Business goal - to have a stable financial structure (balance its ownership of assets with debt and equity)
}" N# R+ R4 u, N9 a5 N: @– Ratios measure the firm’s means of financing assets and ability to pay interest on debts
1 ]/ E, A" \, j* S' p) z. K3 A5 o2 B# Q( s1 n
5 Financial Goals &Their Associated Ratios. ?5 F' p% P( f: \
• Liquidity;& q5 G$ p, I! X! f! W* Y w1 F
– Business goal - ability to meet s-t obligations
1 v" _( M5 L8 k* _! V– Ratios measure how liquid the firm is (how able the firm is to pay its shortterm
$ |4 |7 _ |8 c) L2 @obligations), U" g* H" ^8 ^9 h }( v' a
• Efficiency;5 C: ?7 }: I8 B7 i/ r; k/ u/ Y
– Business goal - to efficiently use assets
; h+ A& y# C9 k– Ratios tell us how efficiently we are using our investments& ]$ z( Q: Y; _% p4 x0 U. Y! R3 k
4 \/ J* C* i/ [• Growth;
9 Z% r u1 E- J; r/ k– Business goal - to increase in size4 A, G0 x. w% }* a1 K$ ?- x1 s0 W1 _5 [
– Ratios tell us whether the company is achieving any growth
# m+ p8 j3 d& }9 }- C1 s+ F& |
( T; m. c- R, o" m4 C+ V3 fInterpreting the Ratios
1 G: V) E/ l7 j• Profitability;
# ^$ Q, T. @+ Q5 a( [– Vertical Analysis (of I/S)7 e. S. p* G; e; X1 r* k B) m8 f
I/S items * 100 = %
4 ]1 e$ ^- ~9 t2 t' w* n' F Sales
& l3 X! T9 Q: h4 E1 z• Tells us it cost us X% of sales to make those sales3 x, P& T" a) J+ [
– Return on Investment/Equity
& C% K9 c/ T2 k, wProfit ATB4D = %
) x* D# I6 ]" g, Y+ sAverage Equity: J: A1 c, Q& m: s/ V) E
[(Yr. 1 E + Yr. 2 E)/2]
{( x( q+ q/ V1 I! d3 s$ j) g& g• Tells us how much profit we made relative to the investment made by the owners* w* E, T: M( W: d# l% g/ R& u
5 ~' h" G! w3 A) ~: E
• Stability;
: U, ^; J- e& B, s1 `) r# [– Net Worth: Total Assets
( v( c n- J* XTotal Equity = % 7 L n+ X0 q4 ~' q
Total Assets- s' m& F+ y u9 x
• tells us what % of assets were financed through owner’s money
" }% g7 k; Q% K& [0 d2 P& J– Debt to Assets
6 [1 |! e5 p, }" z" oTotal Debt = %
6 I( Q1 q/ p/ A4 t+ S. x. }# \! `Total Assets/ G" H: y2 j, Y0 f
• Tells us what % of the assets were financed through debt
2 L# @6 J9 F" C! G" U– Interest Coverage& [4 v2 [5 f* g$ m4 e1 i; u
EBIT = # times
/ C( I( e. b; ^, M7 I: p' rInterest Expense5 D4 h) [0 O- ~
• tells us how many times we can pay interest: Z) y* G& M J2 |
) e3 T/ r6 K. l- C+ E s/ o! W• Liquidity;1 C+ `; m# J4 n$ @8 J5 _, l
– Current Ratio4 U( c1 z a9 |# L; J* M
Current Assets = X:1
, s! b7 O0 n1 q8 i! cCurrent Liabilities
4 T9 y3 d9 A1 J8 A" `% ` A z3 J• Tells us, if we liquidated all our current assets, how many times we can pay our debts; I% c* w: M4 g/ G- o' ~
RULE OF THUMB: 2:1
2 O* v9 l Z3 ~; K" F* C– Acid Test
! A2 h1 @ d/ ?% |2 g8 F; WCash + M/S + A/R = X:1
# b, F: c) |5 |! x& jCurrent Liabilities
! T/ |9 k3 F4 I9 z# P; x• Tells us how many times we can pay our debts with the money easily available to us) M1 g2 M) i' z
RULE OF THUMB: 1:1
; k3 P* J/ Z( D* h" S6 y; y0 e1 ^ B5 \# z: R
– Working Capital( \8 b- B* M( c9 r
C.A - C.L = $X, L5 I3 x: ? y* e9 I4 F) D2 ~) c! q
• Tells us how much money we have to work with AFTER s-t debts are paid: o. v) F0 [7 y9 h1 x3 C( ~1 |# b8 A( L4 x
6 L! ]7 J8 a. B7 D- V) h
Efficiency;
/ R- s* U/ i3 h/ {– Age of Receivables
5 p3 \+ S7 @9 \% r: b/ |2 _7 r9 ?Accounts Receivabl = # Days
! [, r; k% {* A (Sales / 365)/ ~2 ^& m! z. F3 M7 E0 P
• Tells us how long it takes us to collect our $$
2 Y) O7 o: t1 W' I" h7 w5 d. W# M# s: y/ g+ n* i% o
– Age Of Payables, v( ]" I) N- b' {& \% k, q7 ?/ F
Accounts Payable = # Days
/ X! x3 ~& D: ~1 l+ G& r8 X(Purchases* / 365)
9 a. a" X. }/ y' [$ s5 h) k! ~• Tells us how long it takes us to pay our bills! l$ M9 D& Q3 @% v3 U/ G' ^
: w3 {' f9 t3 M d! ?– Age of Inventory; j) S6 c: ^* a( W, C2 q- O Z. ]2 H
Inventory = # Days ]7 N- ^$ Q$ x' e" T; u' C
(COGS / 365)
5 U9 g1 @$ J6 z3 a0 H• Tells us how long we are holding on to our inventory in the warehouse
1 [, V e1 p7 c! l# [% g
0 l, d( i1 t" W1 F• Growth;6 D$ G5 Z+ q$ ]" }
– Sales
5 S6 N3 S& K' x6 n/ v$ O, k+ P– Net Income
$ w1 R' v) p( M; w) t7 y9 p– Total Assets
/ _$ H* P' X1 _– Equity: W4 m+ K# r" e; M* k' G4 P
Yr. 2 - Yr. 1 = %4 G; C2 O0 G+ S6 c5 X3 u
Yr. 1
( f8 j$ U/ l/ U" z/ R- }• Tells us whether the accounts are growing (and hence the company) f' [3 _: t% [; Q
( j7 j5 I6 h( _- }- Q2 y) RUnderstanding Ratios
0 K" r4 \5 R* O+ d: K• DO NOT CONCLUDE THAT “THE RATIO IS GOOD/BAD”5 ?6 g( L$ y) {
• Either the NUMERATOR or the DENOMINATOR affects the ratio
+ B' Y4 c0 F. p0 D C3 q• Ask yourself: “WHY HAS THE RATIO CHANGED & WHAT DOES THIS MEAN?”# R2 f4 ^- u; U/ P
– Which number caused the change?
8 t3 c8 `9 J# `0 D– Look for increasing or decreasing trends over time.: O% G; [# J; I0 \$ c& K6 ~& m
– Will these trends continue?$ ^. u) E+ ]. p& m5 D
– How does the company compare to the industry?4 d0 k/ p; R8 L/ y* N, T
- M# h- S9 U; l4 a F, [
8 s- Q: H% D3 ?" D0 w m$ i! VClassifying Costs
2 v: n1 M l: g4 ^• Variable Costs
0 r. o. G+ t3 C: D2 x– a cost incurred with every unit sold/produced (volume)
4 u! n3 Z+ w! [) [3 j1 o; `; V) y• Fixed Costs/ a! c+ L% B5 \2 t$ p# n
– cost that does not vary with volume |
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