3. Measuring relevant cost and revenues for decision-making
活动和过程决定的管理会计信息
$100,000 $ 55,000 4 years $ 25,000
0
$120,000 $ 20,000 4 years N/A
0
Relevant Costs and Revenues
Four Years Together
Operating costs
Keep $220,000
Replace Difference $ 80,000 $140,000
Make-Or-Buy Decisions
Virginia Motors manufactures auto parts. An outside supplier has offered to supply 30,000 parts of model G23 at a price of $180 per unit. What costs must the decision maker identify before accepting this offer?
活动和过程决定的管理 会计信息
2020年4月28日星期二
Learning Objective 1
Explain why sunk costs are not relevant costs.
Evaluation of Financial Implications
Many decisions require tradeoffs between the costs and the benefits of different alternatives. Financial information about the different types of costs forms the basis of decisions about the organization’s activities and processes.
管理制度汇编 英文
管理制度汇编英文1. IntroductionIn order to ensure the smooth and efficient operation of the company, as well as to enhance the overall management level, it is necessary to establish a set of comprehensive management policies and procedures for all employees to follow. This Management Policy Compilation aims to provide clear guidelines for all aspects of the company’s operations, including human resources, finance, procurement, and operational management. It is the responsibility of all employees to familiarize themselves with the contents of this compilation, and ensure that they adhere to the policies and procedures outlined herein.2. Human Resources Management2.1 Recruitment and SelectionThe company is committed to hiring the most talented and qualified individuals for all positions. When recruiting new employees, the company will conduct a rigorous selection process to evaluate each candidate’s skills, experience, and potential. All recruitment efforts will be based on merit, and will not discriminate against any individual on the basis of race, gender, age, religion, or any other characteristic protected by law.2.2 Employee Training and DevelopmentThe company recognizes the importance of providing ongoing training and development opportunities for employees to improve their skills and knowledge. All new employees will receive onboarding training to familiarize themselves with the company’s policies, procedures, and culture. In addition, the company will provide regular training programs and opportunities for employees to enhance their professional development.2.3 Performance ManagementThe company will implement a performance management system to evaluate the performance of all employees on an annual basis. This system will include performance appraisals, goal setting, and feedback mechanisms to ensure that employees are held accountable for their performance, and are given the necessary support and guidance to improve.2.4 Employee RelationsThe company is committed to maintaining positive and respectful relationships with all employees. Any form of harassment, discrimination, or intimidation will not be tolerated, and will be subject to disciplinary action, up to and including termination of employment. In addition, the company will provide a safe and healthy work environment for all employees, and will comply with all relevant workplace health and safety regulations.3. Financial Management3.1 Budgeting and PlanningThe company will develop an annual budget and financial plan to guide its spending and investment decisions. All departments and units will be required to adhere to the budget allocations, and any deviations will need to be approved by the appropriate authority.3.2 Accounting and Financial ReportingThe company will maintain accurate and transparent financial records, and will prepare regular financial reports to be reviewed by management. All financial transactions will be recorded in accordance with generally accepted accounting principles, and will be subject to regular audits and reviews.3.3 Revenue and Cost ManagementThe company will implement policies and procedures to maximize revenue generation and minimize costs. This includes pricing strategies, cost control measures, and revenue tracking mechanisms to ensure that the company operates within its financial means.4. Procurement Management4.1 Procurement PolicyThe company will establish a procurement policy to govern the purchasing of goods and services. This policy will outline the procedures for requesting and approving purchases, as well as the criteria for selecting suppliers and negotiating contracts.4.2 Vendor ManagementThe company will maintain positive and professional relationships with all vendors and suppliers. This includes assessing the quality and reliability of vendors, negotiating favorable terms and conditions, and resolving any disputes or issues that may arise.4.3 Inventory ManagementThe company will implement an inventory management system to monitor and control the flow of goods and materials. This system will include procedures for ordering, receiving, storing, and recording inventory, as well as regular inventory counts and reconciliation.5. Operational Management5.1 Quality ManagementThe company will strive to maintain high standards of product and service quality, and will implement a quality management system to ensure that all products and services meet customer expectations. This system will include quality control measures, customer feedback mechanisms, and continuous improvement initiatives.5.2 Project ManagementThe company will establish project management processes and procedures to effectively plan, execute, and monitor all projects. This includes defining project objectives, allocating resources, managing timelines and budgets, and reporting on project progress.5.3 Risk ManagementThe company will identify and assess potential risks that may impact its operations, andwill develop mitigation strategies to minimize the impact of these risks. This includes conducting risk assessments, implementing risk controls, and establishing a risk management framework.6. ConclusionThis Management Policy Compilation provides a comprehensive set of guidelines and procedures for all employees to follow in order to ensure the smooth and efficient operation of the company. It is the responsibility of all employees to familiarize themselves with the contents of this compilation, and to adhere to the policies and procedures outlined herein. By following these guidelines, the company will be able to achieve its strategic objectives, and maintain a high level of performance and professionalism in all aspects of its operations.。
管理会计双语版总结
Static budget Flexible budget Static budget variance
Sales volume variance Flexible budget variance
Favorable variance and unfavorable variance Management by exception
16
Types of Problems
A. Equipment Replacement
Sunk Costs & Depreciation
B. Special Order
Fixed Cost & Opportunity Costs
C. Outsourcing: Make or Buy Decision
Comparison of traditional and ABC overhead allocation
6
Major Points of Cost Allocation
1 2 3
4
Why allocate? How much to allocate?
Allocate to whom? How to allocate?
7
Chapter 5 : Cost Behavior
Common cost behavior patterns
Fixed costs : think as total Variable costs : think on a per-unit basis Relevant range
Mixed costs and its separation
2
Chapter 2 :Classifying Costs
下年度工作计划翻译英文
下年度工作计划翻译英文IntroductionAs we approach the end of the current year, it is essential to start planning for the nextyear's work. The work plan serves as a blueprint for the organization's goals and objectives, providing a clear direction and focus for the upcoming year. This article outlines the key components of Next Year's Work Plan, including mission statement, strategic initiatives, budget allocation, performance indicators, and staff development.Mission StatementThe mission statement is a concise expression of the organization's purpose and the reason it exists. It provides guidelines and serves as a guiding principle for decision-making. In Next Year's Work Plan, our mission is to deliver exceptional products and services to our customers while maintaining a high level of employee satisfaction and organizational growth.Strategic InitiativesA strategic initiative is a major project or program that helps the organization achieve its long-term objectives. In Next Year's Work Plan, we have identified three strategic initiatives:1. Enhancing Customer Experience: We will focus on improving the customer journey, providing personalized and efficient service, and incorporating feedback into our product development process. This initiative aims to increase customer satisfaction and loyalty.2. Strengthening Operational Efficiency: We will streamline our processes, automate repetitive tasks, and implement cost-saving measures. This initiative aims to enhance productivity, reduce waste, and improve overall organizational efficiency.3. Expanding Market Reach: We will explore new markets, develop strategic partnerships, and invest in marketing and sales activities. This initiative aims to expand our customer base, increase market share, and drive revenue growth.Budget AllocationBudget allocation is a critical aspect of the work plan as it determines the resources available to execute the strategic initiatives. In Next Year's Work Plan, we have allocated funds to each strategic initiative as follows:1. Enhancing Customer Experience: 30% of the total budget will be allocated to this initiative, enabling us to invest in customer-centric initiatives, customer relationship management tools, and training programs.2. Strengthening Operational Efficiency: 40% of the total budget will be allocated to this initiative, allowing us to invest in process improvement tools, technology upgrades, and employee training and development.3. Expanding Market Reach: 30% of the total budget will be allocated to this initiative, enabling us to invest in market research, advertising and promotional activities, and hiring additional sales and marketing staff.Performance IndicatorsPerformance indicators are metrics used to measure the progress towards achieving the organization's goals. In Next Year's Work Plan, we have defined the following performance indicators:1. Customer Satisfaction: Measure customer satisfaction through surveys, feedback, and net promoter score.2. Operational Efficiency: Measure productivity, process cycle time, and cost savings resulting from process improvements.3. Market Reach: Measure market share, customer acquisition rate, and revenue growth in targeted markets.4. Employee Satisfaction: Measure employee engagement, job satisfaction, and retention rate.Staff DevelopmentInvesting in staff development is crucial for the organization's success. In Next Year's Work Plan, we have outlined the following staff development initiatives:1. Training Programs: Offer training programs to enhance employees' skills and knowledge in areas relevant to their roles and responsibilities.2. Leadership Development: Provide leadership development programs to identify and nurture future leaders within the organization.3. Performance Management: Implement a robust performance management system that includes goal setting, regular feedback, and recognition to motivate and retain talent. ConclusionNext Year's Work Plan serves as a roadmap for the organization, outlining the major initiatives, budget allocation, performance indicators, and staff development initiatives. It provides clarity and direction, ensuring that the organization remains focused on achieving its goals and objectives. With a well-defined work plan in place, the organization can navigate the challenges and opportunities of the upcoming year with confidence and success.。
Measuring and managing customer value[外文翻译]
![Measuring and managing customer value[外文翻译]](https://img.taocdn.com/s3/m/06d9b289daef5ef7ba0d3c40.png)
标题：Measuring and managing customer value原文：Keywords: value, management , customer satisfaction , marketingAbstractCustomer value management (CVM) aims to improve the productivity of marketing activity, and the profitability of business by identifying the value of different customer segments and aligning marketing strategies, plans and resourcing accordingly. There are two complementary approaches to CVM. The first attempts to measure and evaluate the perceived value placed on goods/services by customers. This information is used as the basis of continuous review and improvement of those goods/ services. The second approach measures the value of specific customers,or customer segments, to the organization and uses this to tailor marketing activity. Addressed together these approaches ensure that both sides of a business relationship gain added value. This paper explains the concept of CVM and key issues in using it to drive more effective marketing activityIntroductionThere are two complementary approaches t o measuring and exploiting customer value. The first seeks to identify the value’’ per ceived by customers of the organ iz ation’s goods and/or services. Where such value is better’’ or higher’’than the perceived value of compe titors’ offer ings, the organization has the potential to succeed in the mark etplac e. However, where customers place a higher value on competi tors’offerings, the organization needs to take some action t o maintain competi tiveness.The second approach is to measure the value that a customer (or a category of customer) brings into the organization and use this as the basis of, for example, targeted marketing campaigns. This can work in two ways: using the knowledge of high valu e customers to offer them additional information or incentive to maintain their loyalty, or offering incentives to the low er value customers to try and move them into the high value category.Customer satisfactionSince we have (allegedly) been through a quality revolution’’,products and services delivered to customers should be of appropriate quality, and we should have satisfied customers. Of course, the issue is not quite so simple. Raising quality —assuming it is done at all —can simple raise expe ctation levels; the net result may be no change in satisfaction levels. And, if course, satisfaction is not only based on perceived quality even if we define that as widely as possible; it is influenced by other factors —especially price.Value can be defined simply as the ratio of perceived benefit to perceived cost.Any simplistic approach to custome r satisfaction measurement thatfails to recognize the concept of value is likely to fail. It can be useful to ask customers to expr ess their satisfaction and many organizations do theseusing simple questionnaires with equally simple scoring systems. However,the y tend to give a snapshot of the custome r perception, and using such simple data as the basis of any time series is too uns ophistic ated to use asthe basis of real, hard decision making. A recognition of this limitation hasgiven rise to the concepts of customer value’’(CV)and customer value manag ement’’ (CVM)If we are to use CVM strategically, the firs t task is to identify the strategically impo rtant product/markets within each business unit; these are naturally the products/markets that will be prioritized. The next task is to understand what is important to the custome r base within those produc t/market s.At the most basic level, CVM relies on enhanced measurement of customer satisfaction incorporating price and valu e factors. Thus, CVM measures not just satisfaction’’ with a product or service —i.e. the measure of quality’’—but also relates this satisfaction to the price paid to arrive at a measure of perceived valu e.It is necessary but not sufficient for effec tive CVM to measure the value perceptions of customers with our products/services; to gather a true picture, it is also necessary to measure the value perceptions of comp etitors’ customers toarrive at compara tive assessments of value within a given mark et.The customer value approach thus attempts to identify how people evaluate competi ng offerings —assuming that when they make their purchasing decisions, they do so wi th value’’as a key driver. This approach to value management also recognizes that it is essential in identifying the competitive value proposition’’ for a specific market segment, to examine the key non-price drivers of custome r value relative to price. Once those key value drivers are identified, customer perceptions of company performance on these drivers becomes the means by which all competitors can be plotted on a competi tive matrix to understand positioning within the produc t/market.This requires the determination of answers to three basic questio ns:(1) What are the key factors that custo mers value when they choose bet ween competing offerings in the marketplac e?(2) How is the organization’s performance rated on each factor relative to each of the main com petitors?(3) What is the relative importance or weighting assigned (presumabl y intuitively) by customers to each of the se components of customer value?It is then possible to construct a weighte d index of customer value for the company and its competitors and construct the competi tive m atrix.A breakdown of this analysis by customer type also allows the organization to assess the loyalty of the various parts of the custome r base —and the degree to which that part of the customer base is vulnerable to compe titive intrusion. The model can be further exten ded to assess and include quality metrics to complete the assessment of product attribut es and their effect on customer satisfac tion.This stage of analysis aims to arrive at a shared understanding and agreement on the key product, service and price purcha se criteria that influence custome rs’ purc hasin g and loyalty decisions. The next stage is to work towards an action plan to move forward and improve, since this assessment of the nature of the competitive position within the marketplace can then lead to a re-focusing of marketing campaigns, a better unders tanding of the potential of particularacquisitions, and even re-prioritizing of capital invest ment. Thus CVM becomes the heart of organizational strategy, using this improved understanding of customer satisfaction to maximize the value delivered to target markets, to gain strategic advantage and to enhance profitabi lity.Much of the customer-related informat ion may arise as a result of questionnaires and surveys. Obviously, if we are to use the results to drive strategic decision making, these must be well designed (with outside, expert help) and systematically issued and analyzed. It is obviously important to prioritize customers in key markets —either because they are growing or shrinking, where the potential for gain is highest. It is useful to maintain a core set of questions —to ensure some comparison over time —but the inclusion of new, fresh questions also helps to keep the attention of those completing the surve y.To monitor and manage the surve y/fieldwork quality effectively (especially when undertaken by an external agency), it is important to consider the methodology and the quality standards that will be adopted (including the procedures for eliminating/ minimizing sampling and non-non-sampling errors).Since we wish to repeat the data coll ection at regular intervals, it is of course important t o recognize that customers (and especial ly potential customers) may resen t questionnaires presented at frequent int ervals. This can be prevented by using different samples from the same constituent groups. Since questionnaires and surveys are often best carried out in tandem with less structured ways of gathering information, a focus group’’approach can be used both to collect data and to reward contributors for their participation —perhaps simply by givin g them a good dinner.Data miningThe alternative approach to customer value —that of identifying high value customers or customer categories—requires a n organization to evaluate collected data on past transactions to identify such customers. For large organizations, with a large customer base, this probably needs a data warehouse/ data mining approach —as the basis of database m arketing.A data warehouse is simply a repository for relevant business data. While tradi tional databases primarily store current operatio nal data, data warehouses consolidate data from multiple operational and external sources in order to attain an accurate, consolidated view of customers and the b usiness.Database marketing involves, first, the identification of market segments contai ning customers or prospects with high profit potential and, second, the building and execution of marketing campaigns that favorably impact the behavior of these individuals.The first task —that of identifyin g appropriate market segments —requ ires significant data about prospective custo mers and their buying behaviors. In theory, more data is the basis of better knowledge. In practice, however, very large data stores make analysis and understanding very diffi cult. This is where data mining software comes in. Data mining software automates the pro cess of searching large volumes of data (us ing standard statistical techniques as well as advanced technologies such as decision tre es and even neural networks) to find patterns that are good predictors of —in this case —purchasing behavio rs.Data mining, by its simplest definition, automates the detection of relevant patte rns in a database. For example, a pattern might indicate that married males with children are twice as likely to drive a particular sports car as married males with no children. If you are a marketing manager for a car (or car supp lies/ accessories) manufacturer, this somewhat surprising pattern could be very valua ble.However, data mining is not magic, nor is it a new phenomenon. For many years, statisticians have manually mined d atabases looking for statistically significant patterns. Today, the process is automated. Data m ining uses well-established statistical and m achine learning techniques to build models tha t predict customer behavior. The te chnolo gy enhances the procedure by automating the mining process, integrating it wi th comme rcial data warehouses, and pres enting it in a relevant way for business use rs.The leading data mining products, such as those from companies like SAS andIBM, are now significantly more than just mod eling engines employing powerful algorithms. The y now address broader business and techn ical issues, such as their integration into compl ex information technology envi ronments.If the appropriate source information exists in a data warehouse, data mining can extra ct it and use it to model customer activity. The aim is to identify patterns relevant to current business problems. Typical questions that data mining could be used to answer are :•Which of our customers are most likely to terminate their cell-phone contract?•What is the probability that a customer will purchase multiple items from our catalogue if we offer some form of incenti ve?•Which potential customers are most likely to respond to a particular free g ift promotio n?Answers to these questions can help ret ain customers and increase campaign response rates, which, in turn, increase buying, cross- selling and return on inve stment.The hype around data mining, when it was first advanced as a commercial software proposition, suggested that it would el iminate the need for statistical analysts to build predictive models. As ever, the hype failed to recognize reality. The value of such an analyst cannot be automated out of exist ence.Analysts are still needed to assess m odel results and validate the reasonability’’ of the model predictions; the effectiveness of the entire procedure is dependent on the quali ty of the predictive model, itself dependent on the quality of data collected. The compl exity of the model created typically depends on a number of factors, such as database size, the number of variables known about each customer, the kind of data mining algorit hms used (a variable of the software adopted) an d the modeler’s experience. Since data mining software lacks the human experience and intuition to recognize the difference between a relevant and an irrelevant correlation, statist ical analysts remain in high demand.Data mining helps marketing profes sionals improve their understanding of the behav ior of their customers and potential customers. This, in turn, allows them to target m arketing campaigns more accurately and to align campaigns more closely with the needs, wants and attitudes of customers and prospects.The behavioral models within the so ftware are normally very simple. The pred iction provided by a model is usually called a score. A score (typically a numerical value) is assigned to each record in the database and indicates the likelihood that the custome r whose record has been scored will exhibit a particular behavior.After mining the data, the results are fed into campaign management software that manages the campaign directed at the def ined market segments. In this example, the numerical values that indicate likely attrition may be used to select the most appropriate prospects for a targeted marketing campaign.出处：George Evans: Measuring and managing customer value Work study V olume 51.Number 3.2002.pp.134-139标题：测量与管理客户价值译文：关键字：价值，管理，客户满意度，市场营销摘要客户价值管理（CVM）的目的是通过识别不同客户群的价值来提高营销活动的生产率和企业的赢利能力并调整营销战略，计划和配置相应的资源。
销售个人工作计划范文英文
销售个人工作计划范文英文IntroductionThe personal sales job is a challenging and dynamic field that requires a strategic and proactive approach to achieve success. In order to effectively sell products or services, it is essential to develop a comprehensive sales plan. This article will provide a detailed outline of a personal sales job plan, which includes defining goals, identifying target customers, developing sales strategies, creating a sales pitch, and evaluating performance.1. Defining GoalsThe first step in creating a personal sales job plan is to define goals. This involves setting specific, measurable, achievable, relevant, and time-bound (SMART) objectives. Sales goals should be aligned with organizational objectives and should be challenging yet attainable. Some common sales goals include increasing revenue, acquiring new customers, improving customer retention, and expanding market share.2. Identifying Target CustomersThe next step in the sales job plan is to identify target customers. This involves conducting market research to determine the characteristics and needs of potential customers. By understanding the target audience, salespeople can tailor their approach and deliver personalized solutions. The target customer analysis should include demographics, psychographics, buying preferences, and purchasing behavior.3. Developing Sales StrategiesOnce the target customers have been identified, the next step is to develop sales strategies. Sales strategies define how the sales team will reach and engage with potential customers. There are several sales strategies that can be employed, including direct sales, indirect sales, inbound sales, outbound sales, relationship selling, and consultative selling. It is important to select the appropriate sales strategies based on the target customers' preferences and the nature of the product or service.4. Creating a Sales PitchAn effective sales pitch is crucial for capturing the attention and interest of potential customers. The sales pitch should clearly communicate the unique selling proposition (USP) of the product or service and highlight its benefits and value proposition. It is important to tailor the sales pitch according to the needs and preferences of the target customers. Additionally, the sales pitch should address any objections or concerns that potential customers may have.5. Implementing Sales TacticsOnce the sales strategies and sales pitch have been developed, the next step is to implement sales tactics. Sales tactics are the specific actions and techniques used to engage and persuade potential customers. Examples of sales tactics include cold calling, networking, attending trade shows, conducting product demonstrations, offering promotions or discounts, and providing exceptional customer service. It is important to continuously monitor and adjust sales tactics based on customer feedback and market conditions.6. Building RelationshipsBuilding and maintaining relationships with customers is essential for long-term success in personal sales. This involves establishing trust, delivering on promises, and providing exceptional customer service. Salespeople should be proactive in following up with customers, addressing any issues or concerns, and providing ongoing support. Building relationships with customers can lead to repeat purchases, referrals, and positive word-of-mouth, which can significantly impact sales performance.7. Evaluating PerformanceThe final step in the sales job plan is to evaluate performance. This involves measuring the effectiveness of sales strategies and tactics, tracking key performance indicators (KPIs), and analyzing sales data. KPIs may include revenue, conversion rate, customer acquisition cost, customer lifetime value, and customer satisfaction. By evaluating performance, salespeople can identify areas for improvement and make strategic adjustments to achieve their sales goals.ConclusionIn conclusion, developing a comprehensive and well-executed sales plan is essential for success in personal sales. This article has provided a step-by-step outline of a personal sales job plan, which includes defining goals, identifying target customers, developing sales strategies, creating a sales pitch, implementing sales tactics, building relationships, and evaluating performance. By following this plan, salespeople can effectively sell products or services and achieve their sales objectives.。
并购绩效相关知识(英文版)
并购绩效相关知识(英文版)Mergers and acquisitions (M&A) are strategic transactions in which companies consolidate their resources, market share, or technological capabilities to achieve growth, diversification, or cost advantages. M&A activities are prevalent in various industries and play a critical role in shaping the business landscape.Understanding M&A PerformanceThe success of an M&A deal is typically evaluated based on its performance. M&A performance refers to the financial and operational outcomes of a merger or acquisition, which are measured by various metrics such as shareholder value, profitability, synergies, and market position. The assessment ofM&A performance is essential as it determines the effectiveness of the deal in meeting its intended objectives.Factors Affecting M&A PerformanceNumerous factors contribute to the performance of an M&A deal, some of which include:1. Strategic Fit: The level of strategic fit between the merging companies is a critical factor influencing M&A performance. A high level of strategic fit ensures that the combined entity is better positioned to achieve synergies and exploit market opportunities.2. Cultural Fit: The compatibility of the merging companies' corporate cultures also plays a significant role in M&A performance. Differences in culture can lead to integrationchallenges and result in decreased employee productivity and increased turnover rates.3. Due Diligence: Thorough due diligence is essential before closing an M&A deal. Inadequate due diligence can lead to unforeseen risks, such as hidden liabilities or incompatible business operations, which can negatively impact performance.4. Integration Planning: Effective integration planning is crucial for successful M&A performance. A well-executed integration strategy ensures a seamless transition and maximizes the realization of synergies.5. Execution Capability: The ability of the acquiring company to effectively execute the integration plan is another critical factor affecting M&A performance. This includes solid project management, effective communication, and the establishment of clear responsibilities and accountabilities.6. Market Conditions: External factors, such as industry trends and market conditions, can significantly impact M&A performance. Economic downturns or regulatory changes may affect the deal's outcomes and the ability to achieve anticipated synergies and growth.Measuring M&A PerformanceMeasuring the performance of an M&A deal requires the use of specific financial and operational metrics. A few commonly used measures include:1. Shareholder Value: The ultimate measure of M&A performance is the impact on shareholder value. This can be assessed by evaluating changes in stock price, market capitalization, or total shareholder return.2. Financial Performance: Metrics such as revenue growth, profitability, and return on investment (ROI) are used to assess the financial performance of the merged entity. A successful deal should result in improved financial performance compared to the pre-merger state.3. Synergies: The realization of synergies, which are the expected cost savings or revenue enhancements from the merger, is a crucial measure of M&A performance. Achieving synergies within the expected timeframe and at the projected levels indicates the success of the deal.4. Market Position: Assessing the impact on market share, competitive positioning, or customer base can provide insights into M&A performance. Increasing market share or gaining a competitive advantage indicates a successful deal.5. Employee Engagement: The impact on employee engagement and satisfaction is an important but often overlooked measure of M&A performance. A successful merger or acquisition should result in increased employee morale and commitment. Evaluating M&A PerformanceEvaluating M&A performance is an ongoing process that requires monitoring and reassessment over time. Post-merger integration reviews and regular performance evaluations are essential to identify areas of improvement and make necessary adjustments to maximize the deal's long-term success.ConclusionMergers and acquisitions can be complex and risky endeavors, but when executed effectively, they can create significant value for both companies involved. Understanding and measuring M&A performance is crucial for assessing the success of a deal and making informed decisions for future transactions.Mergers and acquisitions (M&A) are complex transactions that have the potential to significantly impact the businesses involved. Understanding the factors that affect M&A performance and measuring its outcomes are crucial for evaluating the success of these deals and making informed decisions for future transactions. One important factor that affects M&A performance is the strategic fit between the merging companies. A high level of strategic fit means that the companies have complementary resources, capabilities, and market positions that can be leveraged to achieve synergies and exploit market opportunities. For example, if a company acquires another company with a strong distribution network, it can gain access to new markets and increase its sales. On the other hand, if there is a lack of strategic fit, it may be difficult to achieve the expected synergies and the deal may not deliver the desired performance.Cultural fit is another critical factor that can impact M&A performance. When two companies with different corporate cultures merge, there can be challenges in aligning values, norms, and work styles. These differences can lead to integration problems and result in decreased employee morale, productivity, and increased turnover rates. It is important for companies to consider cultural fit during the due diligence process and develop strategies to address any cultural differences post-merger, such as cultural integration programs and communication initiatives.Thorough due diligence is essential to ensure that an M&A deal is successful. Due diligence involves conducting a comprehensive analysis of the target company's financial health, business operations, legal and regulatory compliance, and risks. Inadequate due diligence can lead to unexpected problems after the deal is closed, such as hidden liabilities, incompatible business operations, or regulatory violations. Conducting thorough due diligence helps to identify and mitigate these risks, increasing the chances of a successful M&A transaction.Effective integration planning is crucial for successful M&A performance. Integration planning involves developing a detailed roadmap for combining the operations, systems, processes, and employees of the merging companies. A well-executed integration plan ensures a seamless transition and maximizes the realization of synergies. It is important to involve key stakeholders from both companies in the planning process and establish clear responsibilities and accountabilities for different tasks. Regular communication and progress tracking are also important to ensure that the integration plan stays on track.The execution capability of the acquiring company plays a significant role in M&A performance. It is important for the acquiring company to have the necessary resources, expertise, and organizational structure to effectively execute the integration plan. This includes having skilled project managers, effective communication channels, and the ability to manage change. A lack of execution capability can result in delays, inefficiencies, and a failure to achieve the expected synergies.External factors, such as industry trends and market conditions, can also impact M&A performance. Economic downturns or changes in regulatory environment can affect the deal's outcomes and the ability to achieve anticipated synergies and growth. It is important for companies to conduct a thorough analysis of the external environment before entering into an M&A deal and to continuously monitor and adapt to any changes that may occur post-merger.Measuring the performance of an M&A deal requires the use of specific financial and operational metrics. Shareholder value is often considered the ultimate measure of M&A performance. This can be assessed by evaluating changes in stock price, market capitalization, or total shareholder return. Financial performance metrics, such as revenue growth, profitability, and return on investment (ROI), are used to assess the financial impact of the merger. The realization of synergies is a crucial measure of M&A performance. It is important to track and evaluate the achievement of cost savings or revenue enhancements that were expected from the merger. Assessing the impact on market share, competitivepositioning, or customer base can provide insights into M&A performance. Increased market share or a competitive advantage indicates a successful deal. Lastly, evaluating the impact on employee engagement and satisfaction is also important, as a successful merger or acquisition should result in increased employee morale and commitment.Evaluating M&A performance is an ongoing process that requires continuous monitoring and reassessment. Post-merger integration reviews and regular performance evaluations are essential to identify areas of improvement and make necessary adjustments to maximize the deal's long-term success. It is important for companies to have a structured and systematic approach to evaluating M&A performance and to continuously learn from their experiences to improve future M&A activities.In conclusion, understanding and measuring M&A performance is crucial for assessing the success of a deal and making informed decisions for future transactions. Factors such as strategic fit, cultural fit, due diligence, integration planning, execution capability, and market conditions all contribute to M&A performance. Measuring the financial, operational, and strategic outcomes of the deal helps to evaluate its success and identify areas for improvement. By understanding these factors and continuously evaluating M&A performance, companies can improve their chances of achieving successful M&A outcomes.。
利润的英语名词解释
利润的英语名词解释IntroductionIn the realm of business and economics, a term that holds significant importance is "利润" (lì rùn) in Mandarin or commonly known as "profit" in English. Profit plays a pivotal role in measuring the success or failure of any business endeavor. In this article, we will delve into the comprehensive explanation of the term "利润" and its various facets.Understanding ProfitProfit refers to the financial gain that a business or individual realizes after deducting their expenses from their total revenue. It is an essential metric for assessing the viability and sustainability of a business. Profit can be categorized into different types, namely gross profit, net profit, and operating profit, with each providing distinct insights into a company's financial performance.Gross ProfitGross profit is obtained by subtracting the cost of goods sold (COGS) from the total revenue generated. This type of profit represents the basic profitability of a company's core operations before accounting for other expenses like administrative costs, taxes, and interest. Gross profit is instrumental in determining a company's ability to cover its COGS and generate sufficient revenue to cover additional costs and generate net profit.Net ProfitNet profit goes a step further by considering all operating expenses, taxes, and interest, and deducting them from the gross profit. It provides a clearer picture of a company's financial health, as it takes into account all costs associated with running the business. Net profit is often referred to as the bottom line since it reflects the company's final financial outcome after all expenses have been accounted for.Operating ProfitOperating profit, also known as earnings before interest and taxes (EBIT), focuses solely on the profitability of a company's core operations. It excludes non-operating income and expenses, such as interest income, interest expenses, and non-operating gains or losses. Operating profit serves as an indicator of the efficiency and profitability of a company's day-to-day operations, disregarding external factors that may affect its financial performance.The Significance of ProfitProfit is the lifeblood of any business. It incentivizes entrepreneurship, drives innovation, and promotes economic growth. It acts as a mechanism for businesses to sustain their operations, invest in research and development, and create job opportunities. Profitability attracts investors, fosters competition, and allows companies to expand and flourish.Profitability ratios, such as return on investment (ROI) and return on assets (ROA), help measure how efficiently a business utilizes its resources to generate profit. These ratios evaluate the economic value added by a company and enable stakeholders to make informed decisions regarding investments and financial operations.However, it is essential to note that profit should not be solely viewed in isolation. Businesses must also prioritize ethical practices, social responsibility, and environmental sustainability alongside profit maximization. Striking a balance between profit and societal well-being leads to a more equitable and sustainable future.ConclusionProfit, or "利润," embodies the essence of economic success and serves as a driving force for businesses worldwide. By comprehending the various dimensions of profit, including gross profit, net profit, and operating profit, stakeholders gain valuable insights into a company's financial performance. Profit not only sustains businesses but also spurs economic growth, innovation, and job creation. Nonetheless, it is crucial to adopt aholistic approach, considering ethical and societal factors alongside profit maximization for a harmonious and sustainable future.。
- 1、下载文档前请自行甄别文档内容的完整性，平台不提供额外的编辑、内容补充、找答案等附加服务。
- 2、"仅部分预览"的文档,不可在线预览部分如存在完整性等问题,可反馈申请退款(可完整预览的文档不适用该条件!)。
- 3、如文档侵犯您的权益，请联系客服反馈,我们会尽快为您处理(人工客服工作时间：9:00-18:30)。
Difference between relevant & irrelevant costs & revenues
• Relevant costs & revenues are:: costs & revenues that will be affected by the decision : hence costs & revenues that are independent of decision is irrelevant : relevant future cash flows (since decisions are about future alternatives, not past) : hence, past costs (sunk costs) are irrelevant : relevant future cash flows must be different between alternatives considered (i.e. differential / incremental cash flows) : hence common future cash flows between alternatives considered are irrelevant E.g.: Depreciation is irrelevant Sunk cost as it is the allocation of past costs to future periods; original cost (cost of fixed assets) is unavoidable and common to alternatives being considered. E.g.: Common fixed cost is irrelevant It is common to alternatives being considered (central fixed costs); it is also sunk cost as it is the original cost of fixed asset being distributed to different parts / products of the co.) Practice: You already have a car, however you are deciding whether to travel by train or by car. What is the relevant costs involved?
1) Difference between relevant & irrelevant costs & revenues
• In making non-routine decisions, only relevant costs and revenues (benefits) must be considered the approach used here is decision-relevant approach objective: maximise PV of all future net cash inflows (i.e. long-term not short-term) where future costs and revenues are certain (no risk) • Relevant costs and revenues are required for non-routine decision-making such as: 1. Special selling price decisions. 2. Product-mix decisions when capacity constraints exist 3. Decisions on replacement of equipment. 4. Outsourcing (Make or buy) decisions. 5. Discontinuation decisions.
2) Relevant costs: Qualitative factors
• Qualitative factors In applying relevant costs and revenues for decision making Decisions based only on quantitative terms do not tell whole story Qualitative factors must also be considered. E.g.: A company is considering to buy a component from supplier instead of manufacturing it. However, if supplier does not deliver on time or increases prices later co. cannot meet customer demand or requirement on time and may lose customer goodwill and future sales And because of buying outside, component division may close down and result in redundancies employee morale reduces and future output reduces These qualitative factors must be taken into account when making decision and expressed in non-financial quantitative terms e.g.: % increase in ‘on-time-deliveries’; % reduction of defective products to customers; % reduction in customer waiting time
if qualitative factors are not expressed in non-financial quantitative terms & not taken into account, wrong decision may be made – RISKS from decision may outweigh cost savings.
= 50 000 units p/month
= 35 000 units p/month
The excess capacity is temporary. As the excess capacity is temporary, direct labour; fixed man. o/h and the non-man. costs remain unchanged (i.e. based on 50,000 uts. p/mth). A company has offered to buy 3,000 sweaters each month for the next three months at a price of £20 per unit. The customer wants the its logo to be inserted & this would cost £1 p/unit. No subsequent sales to this customer anticipated. The customer will collect the goods & hence no marketing & distribution costs incurred. Should this offer be accepted?
Chapter 3: Measuring relevant costs and revenues for decision-making
1)Difference between relevant & irrelevant costs & revenues 2)Qualitative factors 3)Relevant & irrelevant costs for 5 decision-making problems: (a)Special pricing decisions (b) Product-mix decisions with capacity constraints (c) Replacement of equipment: irrelevance of past costs (d) Outsourcing & make or buy decisions (e) Discontinuation decisions 4)Relevant costs for direct material & direct labour
Relevant & Irrelevant Costs for 5 decision-making problems
• Evaluation of the order (£’s monthly costs and revenues)
Relevant & Irrelevant Costs for 5 decision-making problems
• Only variable costs, the extra selling costs and sales revenues differ between alternatives and are relevant costs/revenues. • Since relevant revenues exceed relevant costs the order is acceptable subject to the following assumptions: 1. Normal selling price of £40 will not be affected in future (If co. is planning to sell product below this price again in the future, this will affect future market price through competition. In the long run profits will be affected – short term gain but long term losses) 2. No better opportunities will be available during the short term period. 3. The unused resources have no alternative uses that will yield a contribution to profits in excess of £27,000 per month. 4. The fixed costs are unavoidable for the period under consideration. E.g. these costs (labour etc.) need to be retained for future upsurge in demand • Note that the identification of relevant costs depends on the circumstances. - I.e. some costs (such as labour) are relevant in certain situations but irrelevant in others. For e.g., casual labour may not be needed in the short term (relevant cost)