Business Management: Key Concepts and Practices
1. Income Statement of Apple Describe the-
A. Cash Flow
2. Which Initiative You Carry Out to Teach the Culture
– Stories: Explain explanations for current practices – Rituals: Special events – Material Symbols: Type of the work environment – Language: Unique vocabulary
3. Integraton Process Perform When a Company’s Analysis Whether to Buy Another Company
(FALSE) YOU BUY THE COMPANY AND THEN YOU DO THE INTEGRATION PROCESS.
4. Synergies Are Potential Saving That a Company Could Have When Buying Another Company
(TRUE) ARE POTENTIAL SAVINGS.
5. Enumerate Five Information Requests to Analyze the Purchase of Another Company
Financial Statement: – Contracts – Human Resources – Mission and Vision – Legal – Contingencies
6. Merger and Acquisition Steps, and Advantages
M&A processes involve several steps, from inicial planning to post-merger integration. Typical steps involved:
– Strategic Development – Target Identification – Valuation Analysis – Negotiation – Financing
ADV:
– Strategic Expansion: MA allow companies to expand their market presence, diversify their product or service offerings, and enter new geographic regions more rapidly – Synergy Realization: MA enable companies to achieve synergies by combining complementary resources, capabilities, and expertise – Economies of Scale: MA can lead to economies of scale by reducing duplicated functions, consolidating operations, and leveraging shared resources
7. Mission Statement Is What the Company Wants to Become
(FALSE) Is Vision
13. Describe a Code of Ethics. Mention 5 Examples of Information to Be Included in the Code of Ethics, When a New Employee Arrives They Have to Show Them the Culture of the Company, Values, Mission and Vision, and Training Them.
Ex Integrity / Respect / Confidentiality / Socially Responsible / Compliance with Laws and Regulations / Ethical Decision Making
15. Describe 3 Initiatives to Have an Ethical Culture in Your Company:
– Employee Selection: Interviews / Test / Background Checks / Learn about individual personal values – Code of Ethics and Decision Rules: Be a dependable organization citizen / Do not anything unlawful that harm the organization / Be good to customers – Top Management Leadership: Set the tone at the top / Be a good role model being ethical and honest / Share your personal values with employees / Use the reward system
19. Why Do Companies Perform the SWOT Analysis
Companies perform SWOT analysis to assess their INTERNAL STRENGTHS and WEAKNESSES as well as EXTERNAL OPPORTUNITIES and THREATS, in order to make informed strategic decisions and capitalize on their strengths while addressing potential challenges.
20. Differences Between PESTEL and 5 Forces Porter
PESTEL analysis evaluates EXTERNAL FACTORS affecting a business, including Political, Economic, Social, Technological, Environmental, and Legal factors, while Porter’s Five Forces analysis assesses the competitive forces within an industry, including Supplier Power, Buyer Power, Competitive Rivalry, Threat of Substitutes, and Threat of New Entrants.
21. ROA Indicator Shows the Debt Level of a Company
(False) ROA indicator provides how much profit a company is able to generate from its assets.
22. Mention and Explain 3 Finance Principles Used in Walmart Strategy to Improve Financial Performance
– Every day low cost, minimizing cost through its operations to maintain competitive prices – Every day low prices, aimed at providing customers with consistently low prices on a wide range of products – Economies of scale, Walmart leverages economies of scale to achieve cost advantages and improve financial performance
23. Describe 2 Goals of Your Group Company
– Customer experience is excellent: Aim to provide the best customer experiences across its product and services – Sustainability and environmental responsibility: Involves reducing its carbon footprint, minimizing waste, and conserving customer resources
24. Explain the Differences Between Internal and External Analysis
While INTERNAL ANALYSIS focuses on evaluating the company’s INTERNAL STRENGTHS and WEAKNESSES, EXTERNAL ANALYSIS examines the EXTERNAL factors and forces shaping the business environment.
25. Mention 2 Advantages and 2 Disadvantages of Doing M&A as a Strategy of Growth.
Adv:
– Market Expansion: MA can facilitate rapid market expansion by acquiring existing customer bases, distribution channels, and geographic presence – Synergy Realization: MA can create synergies by combining complementary resources, capabilities, and expertise
DISADV:
– Integration Challenges: MA transactions on face integration challenges, including cultural differences, organizational clashes, and operational disruptions – Financial Risks: MA transactions carry financial risks, including overpayment for the target company, hidden liabilities, and underestimation of integration costs
26. Describe the Difference Between Market Value and Book Value
Book value is the net value of a firm’s assets found on its balance sheet, and it is equal to the total amount all shareholders would get if they liquidated the company. Market value is the company’s worth based on the total value of its outstanding shares in the market, which is its market capitalization.
27. Vision Means Why the Company Is in Business
(False) Is the Mission
28. The Balance Scorecard Only Includes Financial Indicators of a Company (False)
It also includes non-financial indicators.
29. Differences Between SWOT and BCG
While SWOT analysis assesses internal and external factors affecting the organization’s performance, BCG Matrix evaluates the strategic position of businesses within the company’s portfolio based on market growth and market share.
30. Mention and Explain 3 Main Risks When You Evaluate an M&A
–Labor contingencies: check if the seller is following the labor rules-Tax contingencies: refer to uncertain tax positions or liabilities that a company may face –Environmental: if the seller is not following environmental rules you can face huge problems in the future Omission of liabilities: omission of debts .31. Describe 3 activities performed by the finance department –Accounting and reporting, accounts receivable, accounts payable, investments.
32. Which ones are the steps to build a strategic plan? Vision: establis vision for the organization’s future-Mission: org articulates its purpose-Values:beliefs that shape the organization’s culture,beh and decision-making-Diagnosis to Analyze Present Performance: Before formulating strategy, it’s essential to conduct a comprehensive diagnosis of the organization’s internal strengths and weaknesses, as well as external opportunities and threats –Big Goals: Based on the vision, mission, and diagnosis, the organization sets big, ambitious goals or objectives that align with its strategic direction.Strategy: This involves identifying strategic initiatives, priorities, and action plans to achieve the organization’s goals effectively. Control System:Implementing a control system is essential for monitoring progress, tracking performance against goals, and ensuring accountability. Expected Results: Finally, the strategic plan outlines the expected results or outcomes that the organization aims to achieve through the execution of its strategy.
33. How does culture affect the strategy of a company? Culture is as or more important as strategy. Culture influences the strategy of a company by shaping organizational values, norms, behaviors, and decision-making processes. A strong organizational culture aligned with strategic objectives can foster employee alignment, innovation, and adaptability, driving strategic execution and long-term success. On the other hand, a mismatch between culture and strategy can lead to resistance, conflict, and implementation challenges, hindering strategic effectiveness and performance.34. Detail 3 strategic initiatives to improve results in your company: –Innovative product to need market needs-Employee training to enhance productivity and customer service-Expanding to new markets 35. ROE shows the level of liquidity of a company (false) It shows the cost effectiveness (rentabilidad) of a company in relation with the shareholders equity.36. Explain the 5 forces framework and describe the weaknesses or missing concepts of such tool:The Five Forces Framework assesses the competitive dynamics within an industry by examining five key forces:
Supplier Power, Buyer Power, Competitive Rivalry, Threat of Substitutes, and Threat of New Entrants. While it provides valuable insights into industry competitiveness, the framework has limitations, including:
-Dynamic Market Condtions: The analysis may not capture rapidly changing market conditions, technological disruptions, or shigs in consumer preferences.-Limited Focus on Non-Market Forces: It primarily examines market-based factors and may neglect non-market forces such as regulatory changes, political risks, and social trends.-Simplicity Oversimplification: The framework’s simplicity may oversimplify complex industry dynamics and fail to capture nuances or interdependencies among the five forces.−Static Analysis: It provides a snapshot of industry competitiveness at a specific point in time and may not account for evolving competitive threats or strategic responses over time. 37. Mention two reasons why company should not prepare a one year business plan Exists different problems to plan in the long term: –Volatility of the macroeconomic environment (unstable) -Conservative with the information of the numbers of the company -Expensive
38. People read financial statements to analyze the quality of products and customer satisfaction (false).Is to identify strengths and weaknesses regarding the economic and financial situation of the company to make decisions.39. Define the strategy for a company Strategic planning shows a specific and integral operation plan. Is an estimation of how the economic and financial company situation will change in the future. The general objective of a plan is to provide information to help in the decision making process, by planning future estimations to focus on the present action plans according to expectation as well as control and verify the achievement of objectives. Strategy is about choices, how we will achieve the objectives, what we need to do to get where we want to go, are actions to achieve the vision and the long term goals 40. Controlling is the management function which focuses on achieving goals (false) they control the employee performance through evaluations. 41. The objectives to prepare an annual budget are the following c. Control performance 42. Explain the weaknesses that Walmart is facing in the present market. how should the company change its strategy to deal with these new risks? Walmart is facing challenges in the increase competition of online retailers, as well as difficulties adapting to other markets from the US. To address these risks, Walmart may focus on improving its ecommerce capabili*es, inves*ng in employee training, and diversifying the offerings of its products and the way they adapt to the different customers trends and different cultures.14. What is the meaning of tone at the top? Tone at the top is when the CEO set the example. It involves the aptudes, values, behaviors, and ethical standards demonstrated within an organization. 16. Risk assessment is a tool that companies use to measure customer satisfaction (false)17. According to your company financial structure explain the main sources of financing − Retain earnings –Debt financing−Equity financing 18. Strategy is a set of integrated activities to achieve the main objecives of a company (True)
12. What is whistle bower? A whistle bower is when someone tell the CEO that someone is doing something wrong, in order to be a bener company. He/she identify wrong behavior
8. Explain the reason why kodak failed
They went bankruptcy because they failed to innovate, this lack of innovation allowed competitors to overcome Kodak in the digital photography market. Kodak missed several opportunities to adapt to changing market trends and consumer preferences. They also failed to adapt their leadership to changing market dynamics and foster a culture of innovation within the company. As a consequence of this different mistakes they faced financial challenges
9. What is social responsibility?
Is a business intention, beyond its legal and economic obligaions, to do the right things and act in ways that are good for society. Examples, reducing energy consumption, child care facilities for employees, packaging product with recycled paper, among others
10. Define green management
Green management refers to the practice of conduction business operations in a way that minimizes negative environmental impact while maximizing positive social and economic outcomes. It involves integrating environmental considerations into decision making process
11. Do you think that businesses organizations should be socially responsible?
From my point of view, social responsibility is not only the right thing to do but also makes good business sense. By integrating social and environmental considerations into their operations and decision-making processes, businesses can create value for stakeholders while driving sustainable growth and positive societal impact.