1. STRATEGIC MANAGEMENT & BUSINESS POLICY 12TH EDITION
THOMAS L. WHEELEN J. DAVID HUNGER

2. Case method- provides the opportunity to move from a narrow, specialized view that emphasizes functional techniques to a broader, less precise analysis of the overall corporation
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3. Researching the Case Situation
Don’t go beyond the decision date of the case in your research unless instructed to do so
Sources of information:
Hoover’s
Company annual and 10-K reports
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4. Researching the Case Situation
Ratio analysis- the calculation of ratios from data on financial statements
Liquidity ratios
Profitability ratios
Activity ratios
Leverage ratios
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10. Analyzing Financial Statements
Review historical income statements and balance sheets
Compare historical statements over time
Calculate changes that occur in individual categories form year to year
Determine the change as a percentage
Adjust for inflation
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11. Common size statements- financial statements in which the dollar figures have been converted into percentages
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12. Altman’s Z Value bankruptcy formula- calculate the likelihood of going bankrupt. Compare historical statements over time
Index of sustainable growth- used to determine whether a company embarking on a growth strategy will need to take on debt to fund the growth
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13. Useful Economic Measures
Constant dollars- dollars adjusted for inflation
Prime interest rate- the rate of interest banks charge on their lowest risk loans
Gross domestic product- measures total output of goods and services within a country’s borders
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17. Why should you begin a case analysis with a financial
analysis? When are other approaches appropriate?
What are common-size financial statements? What is
their value to case analysis? How are they calculated?
When should you gather information outside a case by
going to the library or using the Internet? What should
you look for?
When is inflation an important issue in conducting case
analysis? Why bother?
How can you learn what date a case took place?
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18. PowerPoint created by:
Ronald Heimler
Dowling College- MBA
Georgetown University- BS Business Administration
Adjunct Professor- LIM College, NY
Adjunct Professor- Long Island University, NY
Lecturer- California State Polytechnic University, Pomona, CA
President- Walter Heimler, Inc.
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