In deze samenvatting vind je de stof die behandeld is tijdens de colleges ter voorbereiding van de endterm.
Met afbeeldingen vanuit de slides ter extra illustratie.
● Economic value created = difference between perceived benefits gained by a
customer and the full economic costs.
- Value: What are you willing to pay?
- Price: What you pay
- Cost: How much it costs to produce
● Consumer surplus: Value - price
● Producer surplus: price - cost
● Economic value: value - cost
● Accounting measures;
- Profit ratio’s
- Liquidity ratios
- Leverage ratios
- Activity ratios
● Economic measures
- The cost of debet
- The cost of equity
- Weighted average cost of capital (WACC)
WACC < ROA < Industry Avg. ROA
● Why external analysis?
- Discover opportunities/threats
- Analyze potential for profits
- Understand the nature of competition
● Level of Analysis
- General environment
- Industry (part of the task environment)
- Strategic group
- Individual Group (internal/competitor)
,● General External Environment (outside -> not in the industry)
● Concepts of general environment:
- Demographics: Age, sex, ethnicity, income etc.
- Culture: Values, beliefs, norms etc.
- Economic climate: Health of economic systems within which a firm operates.
- Legal and political conditions: law/legal system -> rules etc.
- Specific international events: Wars, terrorism, nature etc.
- Technological: A change in technology (come-up of the internet for instance)
● The Structure-Conduct-Performance model (SCP model)
- Developed to spot anti-competitive conditions for anti-trust purposes
- Became a model that assesses the possibilities for above normal profits for
firms within an industry.
,● Industry Analysis - 5 forces
● Industry: Set of companies that fulfill a similar need with a similar process.
- Too narrow: Actual competitors are labelled substitute or new entrant
- Too broad: Actual substitutes are labelled direct competitors
● Industry conditions that generate a high threat of existing competitors:
- Large number of competitors
- Slow or declining industry growth
- Low product differentiation (leading to low customer loyalty and switching
costs)
- Industry capacity added in large increments
● Industry conditions that generate a high threat of new entrants:
- High industry growth rate
- Low barriers of entry
- Economies of scale
- Product differentiation
- Government regulation of entry
- Retaliation of incumbent
- Proprietary technology
- Managerial know-how
- Favorable access to raw material
- Learning-curve cost advantages
● Threat of substitute products -> products are form a different industry but fulfill a
similar need (e.g. Coke and Pespi are rivals, milk is a substitute for both)
● Industry conditions that generate a high threat of substitutes:
- High potential of fulfilling the same need
- Low switching costs for customers
, ● Threats of supplier leverage:
- Small number of firms in supplier’s industry
- Highly differentiated product
- Lack of close substitutes for supplier’s products
- Focal firm is an insignificant customer of supplier
- High switching costs for focal firm (= a central company who control their
supply chain)
● Threat from buyers influence
- Small number of buyers
- Low level differentiation
- Low switching costs
● Complementors as a sixth force
- Customers value the focal firm’s products more when the customers also own
the product of the other firm
- Complementors increase the size of the market
- Examples:
Airline industry and the hotel industry
Consoles and video games
● Drawback 5-forces
- Averages with big variance
- Unclear weight separate forces
- Highly dependent on industry definition
- Oversimplification / not complete
- Catch 22 -> Five forces is hard to make when the industry is complex, but
also most important IF the industry is complex.
Voordelen van het kopen van samenvattingen bij Stuvia op een rij:
Verzekerd van kwaliteit door reviews
Stuvia-klanten hebben meer dan 700.000 samenvattingen beoordeeld. Zo weet je zeker dat je de beste documenten koopt!
Snel en makkelijk kopen
Je betaalt supersnel en eenmalig met iDeal, creditcard of Stuvia-tegoed voor de samenvatting. Zonder lidmaatschap.
Focus op de essentie
Samenvattingen worden geschreven voor en door anderen. Daarom zijn de samenvattingen altijd betrouwbaar en actueel. Zo kom je snel tot de kern!
Veelgestelde vragen
Wat krijg ik als ik dit document koop?
Je krijgt een PDF, die direct beschikbaar is na je aankoop. Het gekochte document is altijd, overal en oneindig toegankelijk via je profiel.
Tevredenheidsgarantie: hoe werkt dat?
Onze tevredenheidsgarantie zorgt ervoor dat je altijd een studiedocument vindt dat goed bij je past. Je vult een formulier in en onze klantenservice regelt de rest.
Van wie koop ik deze samenvatting?
Stuvia is een marktplaats, je koop dit document dus niet van ons, maar van verkoper maikelrutten. Stuvia faciliteert de betaling aan de verkoper.
Zit ik meteen vast aan een abonnement?
Nee, je koopt alleen deze samenvatting voor €7,99. Je zit daarna nergens aan vast.
