Fundamentals of Finance

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Fundamentals of Finance Marketing
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Faculty of Economics and Business Administration
Presented by Sanjeev Nath
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Presentation Goal

• Put in context where we are in this class
• What you have covered?
• Plan the semester
• Where are we going?
• How are these topics inter-related?
• Approach to the class
• Your role
• My role

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So far
Business in a Changing World

• Goals, People, and Activities
• Different Economic Systems Capital, Social,
  Communism
• Supply/Demand, Competition
• Ethics Social Responsibility
• IB Trade, Barriers, Block/Alliance
• IB Exp/Imp, FDI, JV, MNC Franchise, Strategy
• IT Managing Info, B2B, B2C, C2C

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So far
Business in a Changing World

• Sole Proprietorships, Partnerships, and
  Corporations
• Mergers and Acquisitions
• Small Businesses

Starting Growing a Business
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So far
Business in a Changing World

• Managment Functions
• Types and Areas of Management
• Skills of Managers,
• Organizational Structures Contributes to
  Communication
• Groups and Teams
• OM. Capacity, Lead Time, Bottlenecks, Logistics,
  Scheduling

Starting Growing a Business
Quality and Competitiveness
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So far
Business in a Changing World

• Hawthorne Effect, Maslow
• Motivation Techniques
• Recruitment, Selection, Retention, and Separation
• Turnover, Benefits, Unions
• Diversity

Starting Growing a Business
Quality and Competitiveness
Human Resources
Example
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Ebbs, Flows and Residual Impact of Business Fads
1950-2000
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Moving Forward
Business in a Changing World
Marketing
Starting Growing a Business
Accounting
Quality and Competitiveness
Finance
Human Resources
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Inter-Connections
Accounting
Finance
Human Resources
Information Systems
General Business
Labor Relations
Logistics/Production
Marketing
Strategy
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Example
Accounting
Finance
Human Resources
Information Systems
A Party
Labor Relations
Logistics/Production
Marketing
Strategy
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Moving Forward
Business in a Changing World
Marketing
Starting Growing a Business
Quality and Competitiveness
Human Resources
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Marketing Section
Introduction
Target Market
Distribution
Promotion
Pricing
Product
Env. Factors

• Five Types of Utility
• Marketing Concept and Functions
• Customer Relations Management

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Marketing Section
Introduction
Target Market
Distribution
Promotion
Pricing
Product
Env. Factors

• Target Market Strategies
• Ways to Segment a Market
• Buying Behavior

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Marketing Section
Introduction
Target Market
Distribution
Promotion
Pricing
Product
Env. Factors

• Developing and Classifying Products
• Product Life Cycle
• Identifying Products Crossing the Chasm

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Marketing Section
Introduction
Target Market
Distribution
Promotion
Pricing
Product
Env. Factors

• Distribution Channels
• Intensity of Coverage
• Actual Distribution

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Marketing Section
Introduction
Target Market
Distribution
Promotion
Pricing
Product
Env. Factors

• Strategies
• Relavance of Contribution and Gross Margin
• Competition

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Marketing Section
Introduction
Target Market
Distribution
Promotion
Pricing
Product
Env. Factors

• Methods
• Push and Pull Strategies
• Location

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Marketing Section
Introduction
Target Market
Distribution
Promotion
Pricing
Product
Env. Factors

• Four forces affecting your product

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Moving Forward
Business in a Changing World
Starting Growing a Business
Accounting
Quality and Competitiveness
Human Resources
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Accounting Section
Introduction
Journal Entry
Income Statement
Balance Sheet
Break Even Analysis
Ratio Analysis

• Who uses Accounting, and for what?
• Double Entry Book Keeping
• The Accounting Cycle

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Accounting Section
Introduction
Journal Entry
Income Statement
Balance Sheet
Break Even Analysis
Ratio Analysis

• Debits and Credits
• Importance of Understanding the Terms

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Accounting Section
Introduction
Journal Entry
Income Statement
Balance Sheet
Break Even Analysis
Ratio Analysis

• Creating the Income Statement
• Calculating Cost of Goods Sold
• Calculating Gross Margins

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Accounting Section
Introduction
Journal Entry
Income Statement
Balance Sheet
Break Even Analysis
Ratio Analysis

• Creating the Balance Sheet
• Calculating Contribution Margin

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Accounting Section
Introduction
Journal Entry
Income Statement
Balance Sheet
Break Even Analysis
Ratio Analysis

• Monetary and CM Break - Even
• Step Fixed Break Even
• Blended Break - Even

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Accounting Section
Introduction
Journal Entry
Income Statement
Balance Sheet
Break Even Analysis
Ratio Analysis

• Using the Income Statment and the Balance Sheet
  to Analyse company performance and provide
  recommendations

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(No Transcript)
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Questions
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Consulting Question

• Your consulting firm has just been asked to
  examine this situation
• An automotive retail store and garage with two
  stores (one located in the suburbs, the other in
  downtown) is experiencing difficulty.
• Market share is increasing but total profit is
  decreasing.
• What questions should you as to help the company
  start back on the right track? What
  recommendations would you make?