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Chapter 4 - Coggle Diagram
Chapter 4
Production/Operations Functions
Process
Capacity
Inventory
Workforce
Quality
Basic Financial Ratios
Profitability Ratios
Ratios
Return on stockholders’ equity (ROE).
Earnings per share.
Price-earnings ratio.
:question:
Effectiveness
shown
by
returns on sales
&
investment
Activity Ratios
:question:
Effective use of firm’s resources
Ratios
Inventory turnover
Fixed assets turnover
Total assets turnover
Accounts receivable turnover
Average collection period
Leverage Ratios
:question:
Extent of debt financing
Ratios
Debt-to-total assets
Debt-to-equity
Long-term debt-to-equity
Times-interest-earned
Liquidity Ratios
:question:
Firm’s ability to meet its short-term obligations
Ratios
Current ratio
Quick (or acid test) ratio
Growth Ratios
:question:
Firm’s ability to maintain economic position
Ratios
Sales
Net Income
Earnings per share
Dividends per share
Research & Development Functions
Development of new products before competitors.
Improving product quality.
Improving manufacturing processes to reduce costs.
These functions can be done internally or externally.
Marketing
Marketing Functions
1- Customer analysis
Responsible for
Customer surveys
Consumer information
Market positioning strategies
Customer profiles
Market segmentation strategies
2- Selling products/services
Responsible for
Advertising
text
Sales Promotion
Publicity
Personal Selling
Sales force management
Customer relations
Dealer relations
3- Product & service planning
Responsible for
Test marketing
Brand positioning
Devising warranties
Packaging
Product features/options
Product style
Quality
Deleting old products
Providing for customer service
4- Pricing
Responsible for
Test marketing
Brand positioning
Devising warranties
Packaging
Product features/options
Product style
Quality
Deleting old products
Providing for customer service
5- Distribution
Responsible for
Warehousing
Distribution channels
Retail site locations
Sales territories
Inventory levels
Transportation
Wholesaling
Retailing
6- Marketing research
Responsible for
Gather data
Record data
Analyze data
7- Opportunity analysis !
Management Information Systems
Purpose :question:
Improve performance of an enterprise by
improving the quality of managerial decisions
.
Value Chain Analysis
:question:
The process whereby a firm determines the costs associated with:
Purchasing raw materials.
Manufacturing products.
Marketing products.
And compares them to the value chain of rival firms.
