agribusiness quizzes 6-8

forecasting allows the firm to

plan for the future

failure to predict change is the

leading cause of business failure

forecasting

is vital to a firms ability to achieve its purpose and goals

2 ways to look at data are

cross-sectional and time series

when forecasting you should study

past customer buying habits

what are the 3 types of budgets

operating, cash flow, capital expenditure

a budget is an

estimate

accounts payable consists of money

owed BY the firm

what are variable costs

costs that can change depending on consumption

the purpose of the cash flow budget is to

help manage the firms cash balances so sufficient cash is available to meet obligations as they come due

this environment is made up strengths and weaknesses

internal

what is step 1 in developing a strategic plan

creation of mission and vision statements

the things that will enable a firm to realize its objectives are known as

strengths

what does SWOT stand for

strengths, weaknesses, opportunities, threats

a swot analysis is broken into

internal and external environment

firms should understand their ____ and work towards it

competitive advantage

which statement explains what the firm aspires to be

vision

which statement defines the firms purpose

mission

this environment is analyzed first to identify opportunities and threats

external

things that could reduce the firms ROIC and profits are known as

threats

the process by which managers choose a set of strategies that will allow them to be the first choice and so they can achieve superior financial performance

strategic management

a weakness can be transformed into

a strength

how many forces make up porters model

5

what is a value statement

a statement that explains how the business and employees are going to conduct themselves

what does return on invested capital measure

profitability and value-creating potential of a firm relative to the amount of capital invested

the porter model identified and organized five forces that affec

a firms competitive position