Market Research and Business Planning: A Comprehensive Guide
ITEM 8: Market Research
Systematic and Objective Process
Market research is a systematic, objective process that follows a scientific method and planned methodology. It involves collecting and analyzing market information to support business decisions, set targets, and design action policies. The process is neutral, avoiding biases and personal opinions.
Sources of Information
Primary Sources
Information gathered directly by the company through methods like surveys, interviews, or focus groups with potential
Read MoreStrategic Planning Process: A Comprehensive Guide
COMPONENTS OF THE STRATEGIC PLANNING PROCESS
Strategic planning analyzes and processes internal and external business information to evaluate the current situation, analyze the competitive landscape, and project a future for the organization.
Strategists
Strategists are key organizational officials, such as board members, presidents, managers, and vice presidents, who have the decision-making power to shape the company’s future performance. These individuals are integral to the company, so the strategic
Read MoreUnderstanding Financial Statements: A Comprehensive Guide
What are Retained Earnings?
Retained earnings are the accumulated profits of a company that have not been distributed as dividends to shareholders. These earnings are reinvested back into the business for growth and expansion.
What are Dividends?
Dividends are a portion of a company’s profits that are distributed to shareholders as a return on their investment. They can be paid in cash or additional shares of stock.
What is the Life of a Good?
The life of a good refers to the duration for which it provides
Read MoreBusiness Strategy and Organizational Structure
Structure and Strategy
The possible relationship between business strategy and organizational structure has been addressed since the 1960s. Alfred Chandler’s work examines the historical evolution of a set of seventy major U.S. companies in the period from 1909 to 1959. Three key ideas are noteworthy:
The Structure Follows Strategy
As companies change their growth strategy to utilize resources more profitably, new administrative problems arise. These problems lead to a deterioration of the company’
Read MoreIntroduction to Finance: Principles and Institutions
Chapter 1: Introduction to Finance
What is Finance?
1. Finance is the study of how individuals, institutions, governments, and businesses acquire, spend, and manage money and other financial assets.
Financial Institutions
2. Financial institutions are intermediaries that aid in the flow of funds between borrowers and investors. Real estate developers are not considered financial institutions. Examples of financial institutions include:
- Banks
- Insurance companies
- Investment companies
Business Life-Cycle Stages
3.
Read MoreFinancial Ratio Analysis and Investment Valuation
Income Statement
A summary of revenues and expenses, and an analysis before and after income tax. EPS (Earnings Per Share) = Earnings available for common shareholders / Number of shares of common stock outstanding = (Net Income – Cash dividends on preferred stock) / Number of common shares outstanding.
Balance Sheet
Assets = Liabilities + Shareholders’ Equity
Statement of Cash Flow
The flow of cash into and out of the firm in terms of:
- Operating activities: Wages, materials
- Investing activities: Working