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Detecting and Evaluating Business Opportunities - Coggle Diagram

- - - - Analyst strategy
        The analyst is between the advocate and the prospector. He takes fewer risks and makes fewer mistakes than a prospector but is less committed to stability than defenders.
        Most companies are analysts.
        They are not usually the first to move in the sector but are often the second or third.
        
        Reactor strategy
        A reactor does not have a proactive strategy. They react to events as they occur. They respond only when forced by macro environmental pressures.
        It is the least effective of the four strategies. It has no direction or orientation.
        Normally, when we think about business and its competition, “Business is a war” comes to mind, at first everything seems to be true, we believe that we are a winner or loser, but the competition is always the opposite.
        
        Game theory
        To find a way to bring together competition and cooperation, the authors turned to game theory.
        Which, as they mention, this theory has the potential to revolutionize the way we think about business, which is because the fundamental ideas of game theory are so powerful, and because business offers so many opportunities to apply them.
        This theory had three famous pioneers within its incursors, John Nash, John Harsanyi and Reinhart Selten.
        
        PARTS of the game
        The exposition of the theory of the game, identifies five basic elements of any game: Players, added values, rules, tactics and extension, which for brevity they call PARTS:
        
        Players in the game: represented by the elements involved in the process or people who take part in the business: How to do the business and the consequences of doing it.
        
        Added value (added value) What you get is based on your added value, and is obtained by subtracting the dimension of the market when you are outside it from the dimension of the market when you are inside it, it is what the company provides to any of the players: in this case, what the result of the structuring will provide to those involved.
        
        Rules (rules) of the game where the company or organization is participating: represented by government regulations, business and market policies.
        
        Tactics (tactics) which are the essential way to influence the perception of how your organization fits into the game: represented in the actions developed by the strategy.
        
        Scope (extension) of the business, in this case a link is sought with other players in your Value Network (who will also be linked to other games, which for you will also represent opportunities for expansion and change in your own operation).
- - - - According to the way of analyzing the content of the financial statements, there are the following evaluation methods:
        
        Vertical Analysis Method: It is used to analyze financial statements such as the Balance Sheet and the Income Statement, comparing the figures vertically.
        
        Horizontal Analysis Method: It is a procedure that consists of comparing homogeneous financial statements in two or more consecutive periods, to determine the increases and decreases or variations of the accounts, from one period to another. This analysis is of great importance for the company, because it informs if the changes in the activities and if the results have been positive or negative; it also makes it possible to define which ones deserve more attention because they are significant changes in gait.
        
        Importance of Cash Flow in the Company
        Without a doubt, the main indicator of the health of a business is the cash on hand.
        This vital element reflects its importance in the state of mind of the owners, the employees, the families of both, the suppliers and customers and even the Treasury. But how can you manage to have this valued asset in current times?
        The uncertainty surrounding the world has crippled economies and made cash scarce.
        
        Analysis of Financial Information: The different types of analysis that are known are not mutually exclusive, none can be considered exhaustive or perfect, since all financial accounting information is subject to a more complete or additional study.
        It allows the analyst to apply his creativity in the analysis itself, in addition to finding new and interesting facets. To obtain good information on the financial situation and the operation of a business, it is required at least to have a statement of financial position and a statement of results.
        It is advisable to have financial statements from previous years since a greater number of different types of analysis can be used.
        
        Balance Point On many occasions we have heard that a company is working on its equilibrium point or that it is necessary to sell a certain number of units and that the sales value must be higher than the equilibrium point; however, we believe that this term is not clear enough or contains information that only financial experts are capable of deciphering.
- - - - PRODUCT MARKETING vs. MARKETING SERVICE
        Although the marketing of products is closely related to the marketing of services, the strategy is not the same because services are executed and consumed, while products are manufactured and owned.
        STRATEGIC MARKETING
        Most marketing professionals disagree on the definition or use of the term "marketing strategy." Not only is there no consensus regarding the definition, but the prevailing confusion is somehow significant. For the purposes of this discussion, the definition is based on the way a company manages its resources.
        
        PLANNING, GOAL SETTING AND MARKETING STRATEGIES
        The marketing strategy identifies the current situation of your business, and establishes short- and long-term goals for the future. Without a marketing plan, marketing efforts are likely to be more reactive than proactive.
        SELLING AS A MARKETING TECHNIQUE
        Selling is an integral part of the marketing strategy. But the aggressive and sometimes objectionable practices of used car dealers, street vendors, and peddlers have created an unfortunate stereotype of the salesman.
- - - - Etymology
        The word "statistics" comes from the Latin statisticum collegium ("state council") and its Italian derivative statista ("statesman" or "politician").
        The German term Statistik, which was first introduced by Gottfried Achenwall (1749), originally designated the data analysis of the State, that is, "the science of the State" (also called "political arithmetic" from its direct English translation).
        It was not until the 19th century that the term statistics acquired the meaning of collecting and classifying data. This concept was introduced by the Englishman John Sinclair.
        
        Origins in probability
        Statistical-mathematical methods emerged from probability theory, which dates back to the correspondence between Pierre de Fermat and Blaise Pascal (1654). Christiaan Huygens (1657) gives the first known scientific treatment of the matter. Jakob Bernoulli's Ars Conjectandi (posthumous, 1713) and Abraham de Moivre's Doctrine of Possibilities (1718) studied the subject as a branch of mathematics.
        
        The theory of errors can be traced back to Roger Cotes' Opera Miscellanea (posthumous, 1722) and to the work prepared by Thomas Simpson in 1755 (printed 1756) which applied for the first time the theory of observation error discussion. The reprint (1757) of this work includes the axiom that positive and negative errors are equally probable and that there are certain assignable limits within which all errors lie; continuous errors and a probability curve are described.
- - - - In 1980 Michael Porter developed this method of analysis in order to discover what factors determine the profitability of an industrial sector and its companies. For Porter, there are 5 different types of forces that determine the success or failure of a sector or a company:
        
        Threat of entry of new competitors. The market or segment is not attractive depending on whether or not the entry barriers are easy to overcome by new entrants, who may arrive with new resources and capabilities to seize a portion of the market.
        
        The rivalry between competitors. It will be more difficult for a corporation to compete in a market or in one of its segments where competitors are very well positioned, numerous, and fixed costs are high, since it will constantly be faced with price wars, aggressive advertising campaigns, promotions, and entry of new products.
        
        Bargaining power of suppliers. A market or market segment will not be attractive when the suppliers are very well organized as a union, have strong resources and can impose their price conditions and order size. The situation will be even more complicated if the inputs they supply are key to us, they have no substitutes or are few and high cost. The situation will be even more critical if it is in the provider's strategic interest to integrate forward.
        
        Bargaining power of buyers. A market or segment will not be attractive when customers are very well organized, the product has several or many substitutes, the product is not highly differentiated or is low-cost for the customer, which allows them to make equal or very low substitutions. cost. The greater the organization of the buyers, the greater their demands will be in terms of price reduction, higher quality and services and consequently the corporation will have a decrease in profit margins.
        
        Threat of entry of substitute products. A market or segment is not attractive if there are actual or potential substitute products. The situation is complicated if the substitutes are more technologically advanced or can enter at lower prices, reducing the profit margins of the corporation and the industry.
        
        Government
        The government can limit or prevent entry to certain industries using restrictive regulations. These restrictions are widely used in health, food and safety issues.