Strategic planning is borne out of the fact that all markets - capital, labor, and product are imperfect and hence they need effective measures to gain profitability. That is why strategies are made to manage business organizations in imperfect and changing markets. It is also believed that imperfections and changes ... Read More

The BCG model is the simplest tool for businesses to understand their strategic position in the business lifecycle. The model helps business firms understand what they must do in order to achieve more profits in accordance with their position in the BCG matrix.The implications of the model in strategic financial ... Read More

What is a BCG Model?The Boston Consulting Group (BCG) put forward a model of corporate posters of companies at different stages of their business position. It is the BCG model that charts market shares against market growth.The BCG model, also known as the Growth-Share Matrix, is a market model which ... Read More

What is Strategic Planning?Strategic planning ensures that a company’s portfolio is balanced in terms of profit, overall risk, and cash flows. Strategic planning is, therefore, the tool by which the progress of a company can be ensured.Strategic planning decides the strategy. Planning is done at the top level of a ... Read More

Although strategy and strategic plan are considered as the same, it is wrong to assume so. There are some distinct differences between strategy and strategic plans. Strategy and strategic plan are the parts of financial planning wherein companies try to chart their future course of action depending on the resources ... Read More

What is Discriminant Analysis?Discriminant analysis is a widely used tool in Machine Learning, Statistics, and Finance. It is a manner to classify the targets based on some assumptions, and then use them to predict the future of a process. As is obvious, since investors and analysts want to predict a ... Read More

Parametric Methods of Efficiency Vs Non-Parametric Methods of EfficiencyParametric and non-parametric methods of efficiency measurement have gained significant momentum in the current decade. However, the choice of the method for efficiency management has been a matter of lengthy debate. The parametric method has the advantage of being free from the ... Read More

What is Ratio Analysis?Ratio analysis is a good way of comparing the conditions of a business with its peers. It helps businesses understand their own strengths and weaknesses.Ratio analysis are basically tools to measure the various relationships between two or more financial items. It also helps businesses compare themselves with ... Read More

What is Inter-Firm Comparisons?Financial ratios can be compared with one another in order to get a gist of the performance and other attributes of a company in relation to the other major firms. Such a performance of a company that shows the financial ratios is known as Cross-Sectional Analysis or ... Read More

Businesses use past and present data in order to find a pattern and predict the future. This review of past and present forms of data is usually known as Trend Analysis which is one of the most popular tools in the hands of financial analysts and managers. Ratio analysis, on ... Read More