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Business Strategies and Financial Planning

Jun 1, 2025

Business Quantification and Implementation

Key Concepts

  • Business Implementations: Essential for achieving business objectives and gaining competitive advantage.
  • Strategic Planning: Provides clear direction and value to customers; crucial for success.

Forecasting and Ratio Analysis

  • Forecasting: Uses historical data for predicting future trends.
    • Key for risk identification and resource allocation.
  • Factors in Sales Forecasting:
    • Competition, Macroeconomics, Events, Law, Season, Employees.

Creating a Sales Forecast

  • Formulas:
    • Markup, Selling Price, Projected Revenue formulas provided.

Example: La Mira Bella RTW Shop

  • Cost and Sales Forecasting:
    • Detailed daily, monthly, and annual projections for summer dresses and jeans.
  • Revenue Adjustments:
    • Based on seasonal factors such as peak season and school season.

Ratio Analysis

  • Profitability Ratios:
    • ROI, Operating Income Ratio, Return on Assets.
  • Financial Health Ratios:
    • Stockholder's Ratio, Debt Ratio, Debt-to-Equity Ratio.
  • Liquidity Ratios:
    • Quick Ratio, Current Ratio.

Value Chain Analysis (VCA) Model

  • Primary Activities: Inbound Logistics, Operations, Outbound Logistics, Marketing and Sales, Service.
  • Support Activities: Infrastructure, HR Management, Tech Development, Procurement.

Managing Human Resources

  • The People Strategy:
    • Encompasses recruiting, retaining, rewarding, retooling, and recycling employees.
  • The Eight Rs of HR: Recruiting, Routing, Retaining, Resonating, Reviewing, Rewarding, Retooling, Recycling.

Business Model Canvas (BMC)

  • Components:
    • Customer Segment, Customer Relationship, Channels, Revenue Streams, Key Activities, Key Resources, Key Partners, Cost Structure, Value Proposition.

Business Permits and Licenses (Philippines)

  • Essential Permits:
    • Bureau of Internal Revenue, Barangay Clearance, DTI Registration, Mayor's Permit, SEC Registration.
  • Employee-related Permits: SSS, PhilHealth, Pag-IBIG.

References

  • Various textbooks, articles, and online resources related to business strategy and financial planning.