Negative Working Capital: Causes and Solutions
**Negative Working Capital: Causes and Solutions**
The working capital provides information about the degree of adequacy of the financial structure and investment made by the company. It must be positive and sufficient to secure the short-term performance of the company and to ensure the stability of the financial structure. If negative, it means that part of the long-term investments are financed with short-term callable funds, which may cause the company to have problems paying debts and be near
Read MoreStrategic Business Planning and Competitive Advantage
The Business Environment
General Environment: The overall framework or set of factors and circumstances which apply equally to all firms in a given society or geographical area.
Environment-Specific: It refers only to those factors that influence a group of companies that have common characteristics and concur in the same sector of activity.
General Environmental Factors
Set of factors that define the framework within which firms operate and establish the circumstances in which they are to develop.
Read MoreEconomic Shifts in Socialist and Developing Nations: 1945-1985
From 1945 to 1985, a significant portion of the world, including seven countries in Central and Eastern Europe (CEE), China, and other smaller nations, embarked on constructing a socialist economic system. Together, these countries accounted for one-third of the global population. It is important to note the differences in economic performance among these socialist countries. Their GDP per capita grew at a slower rate than that of developed capitalist countries (DCCs), leading to divergence between
Read MoreBusiness Concepts: Structure, Operations, and Legal Forms
Business Concept
An economic unit of production of goods and services adds value through a process of production or service provision. This is performed using an ordered set of human factors, financial resources, and technical assets. The question is achieving certain objectives driven by the address.
Components of a Company
- Human factors
- Heritage
- Organization
- Environment
Business Relations
A company receives payment for the sale of goods and services and makes payments for the delivery of inputs, acquisition
Read MoreBusiness Management: Planning and Organization
**Directed Tasks of Government and Security Criteria**
Directed tasks of government establish appropriate security criteria for the achievement of goals.
**Planning: Setting Goals and Strategies**
Planning involves setting goals, establishing strategies to achieve them, and defining and establishing criteria, policies, and decisions for the company.
**Classification of Plans**
By Nature and Characteristics
- Objectives: Distinguish between objectives that involve the entire company and sub-objectives that
Strategic Planning and Business Management: Key Concepts
1. How Does the Process of Defining an Organization’s Strategy Work?
The process of defining a strategy involves creating a plan of direction, establishing standard methods of behavior, positioning the organization uniquely, and developing tactics to outmaneuver competitors.
2. What Opportunities Does Establishing a Formal Strategy Offer?
Establishing a formal strategy enables an organization to:
- Set a common direction for all stakeholders
- Focus efforts and resources
- Define the organization and its structure
- Provide