Area

Business Model Author Main

Vision;Points
Mission Statement;
Strategy
Business Strategic intent
Misison statement =>
Strategy
Business SMART
Levels of Goals & objectives
Tactical-Business;
Strategy
Organisational strategy
structural Operational-Functional
Support Staff; Techno-
Structures
Organisational config'ns
structural Mintzburg Structure
4) Matrix/ Project 5)
Structures
Organisational concepts
Span of control / Mintzburg Shamrock
Span of control Org'n/ scalar
Structures
Organisational scalar chain
Open & closed chain
Systems, Semi-closed
Structures
Organisational systems systems
Single (simple), Double
Structures
Organisational Feedback loops
vertical (internal & and
Horizontal external)
vertical
Structures
Organisational structures integration
franchises (intial payment
Structures
directed & Alliances + annualExternal;
Internal; fee +/or profits)
controlled)
Corporate Stakeholders
Mendelow's Connected
Level of interest: low - high.
Governance
Corporate Matrix
Governance Mendelow Level of power: Relations
Renumeration; low - high. w/
Governance Code
Fundamental shareholders
seem incompatible =
Ethics
Responsibility Principles ethical
4 layersconflict.
CSR: Economic;
(CSR)
the Finance Layers of CSR
information & Caroll & Bucholtz Legal; Ethical;
transactions and Philanthropic
provides
Function
the Finance Users
Tasks of finance info & advice to users.
Reporting for ext'l users 5)
Function
The Finance funciton
Management internal
internal audit
info for planning &
Function
The Finance Accountants
Contemporary control
Process Re-engineering
Function
The Technology Developments
Information (BPR)
& information; good
& IT Technology
The function Systems
Information quality information
that external users can
& IT Technology
The function Systems
Emerging access
Media; E-commerce; E-
& IT Technology
The function Trends
Developments business; Big
companies; Data
Virtual supply
& IT function
System in IT chains
Testing; Training &
Implimentation
System FITT
Switching to a Changeover
operation; Parallel running;
Implimentation
Change new system
switching to a Phased Implimentation
Deficiencies in
Management
Change new system
reason for Kotter & development
different system of
assessment
Management
Change resisting change
resistance to Schlesinger
Kotter & situations
co-optation; explicit &
Management
Change change
The Change Schlesinger implicit
Unfreezecoercion
-> Move -> Re-
Management
Change Process
Lewin's Force Lewin & Schein freeze
Forces for change vs forces
Management
Change Field Analysis
co-ordination & Lewin resisting
maintainschangemomentum;
Management
Maintenance & communication
information review)
Model can analyse
of system, and soeffect of IS
org'n,
evaluation
Maintenance & systems
System on an
going industry.
forward.
Corrective; Perfective;
evaluation Maintenance 5 competitive forces operating
Adaptive
System Outsourcing Bureaux; Facilities
in a competitive environment:
Outsourcing
System Arrangement
Disadvantages Management
serviceof; new
Threat access to
entrants;
Outsourcing of Outsourcing expertise;power
bargaining flexibility
of suppliers;
bargaining power of customers;
threat of substitute products/
Competative Porter's Five services; existing competative
Enviroment
Competative Forces
Generic Porter rivalry in an
(narrow industry
market, eg rela
Enviroment
Computer Strategies
against provacy Porter niche)
firewalls; encrytption; dial-
security attacks back security
IT and moral IT and moral 4. Systems quality 5.
dimensions
Operations dimensions
Porter's value Quality of life
development;
Management
Operations chain Porter procurement)
Passive; Independant;
Management
Supply Chain Procurement
strategic supply Reck and Long Supportive;
Performance Integrative
Measures
Management
Supply Chain wheel
Supply Chain Cousins (costs, complaints)
pipeline. With closer links
Management
Supply Chain Networks
Supply sourcing & co-operation.
Sourcing strategies: Single,
Management
Supply Chain strategies include: Multiple, Parallel, Delegated
Management
Quality Sustainability Quality Assurance &
Management
Quality Key Definition
Management Control
the quality, productivity &
Management
Management (TQM) effectiveness. Teamwork &
Participation,
(TQM)
Quality PRECEPT
Productive Empowerment.
early equipment
Management
Quality Maintenance) management
(iii) TPM
Management
service Ho's TQMEX Ho (iv) TQM dependable
Reliability
industries RATER
Customer service
Word of mouth, customer
Marketing??
Quality Expectations mood/ attitude solutions,
improvements/
Management
Quality Quality Circles unity,
customer quality culture
delight;
Management
Quality Six Sigma profitibility improvement
approach), Self-discipline
Management
Quality 5 Ss (stick
elementswith&it)procedures;
Management
Quality Lean Production defective
Procedures units & re-work.
checked &
Management
Management ISO
Management verified.
reacting to changes in
Strategies
Management Strategies
Management demand
influence
Strategies
Inventory Strategies demand.
Demand pull, goods only
Control
process & Just in Time (JIT) produced when layout,
layout; process needed.cell
technology
process & Layouts & Flow
Proces layout
Aim: speed & efficiency
technology Technology of produciton
sales orientation, product
Marketing
Marketing Definitions
Marketing orientation
product/ service -> obtain
Orientation
Strategtic Orientation
Forecasting marketon
based feedback
forecast demand
Marketing demand
strategies & pricesdel'p't,
market
Marketing
enviroment matrix Ansoff diversification
Threats
research PESTEL
Market & SWOT to be met with specific
Marketing segmentation
Market marketing mix. has distinct
suitably stable,
Marketing segmentation responses, characteristics
(several version for many
Marketing Target market
The Marketing segments).
dependent variables used
Marketing
The Marketing Mix
Price Setting ot influence target
discrimination/ market.
selective
Mix
The Marketing Strategies
Group (BCG) pricing
Mix
The Marketing Matrix
Product Introduction, Growth,
Mix Lifecycle Shakeout,
extension; Maturity, Decline
multi-branding;
Branding
Types of new brands;relationship,
interactive, co-brands
marketing consumer post modern,
decision 5) Post purchase
Marketing buying process
consumer evaluation
factors, personal factors,
Marketing
Organisations buying pychological
Approvers, factors
Buyers,
as buyers Decision Making Unit roles Gatekeepers, Users
Not-For-ProfIt Charity Place: Charity shops,
Org'n
Human Marketing
SCientific Mix websites
Efficienncy etc & Planning w/
Resources
Human Management
Relations Taylor pay incentives
Resources
Human Approach
Hierarchy of Mayo Social
Social,rel'ps
Esteem,aspect
Self-
Resources
Human Needs Maslow actualisation
Motivators & discontent
Resources
Human Hygiene Factors Hertzberg form
want hygiene factors
to contribute & be
Resources
Human Theory X & Y MacGregor fulfilled
(strength of perefence) x
Resources
Human Valence Vroom Expectation
complex man it will happen
Resources
Human Rational man Schein ('psychological contract')
Resources
Human Motivation
incentive Mullins Economic, social,
transparency, intrinsic
self-interest
Resources
Human schemes overredesign,
Job teamwork enrichment,
Resources
Human Motivation enlargement,
Forecasting 3)rotation
Job analysis
Resources
Human HRM Strategy [Mullins] 4) Rectruitment
outcomes & Training
-> performance
Resources
Human HRM Strategy Guest outcomes - fin'l outcomes
rating scales, difficulty w/
Resources
Human Recruitment
BADPIGS abstract
intelligene,qualities.
special
Resources
Human Recruitment Rodgers attributes
(specific vs general, costs,
Resources
Human Training
Training distraction
1) Reactionfor 2) other
Learningstaff
3)
Resources
Human evaluation Kirkpatrick Behaviour 4) Results
performace, potential &
Resources
Human Appraisal
Appraisal training needs.judgement,
Confrontation,
Resources
Human barriers Lockett informal, bureaucracy,
upward appraisal, 180/360
Resources
Human Appraisal degree
Stages: 1) First warning 2)
Resources Dismissal FInal warning 3) Sanctions

 Applied to Marici
More Detail
Strategic intent = direction & Power
coherence
across whole org'n. Can be primary;
secondary; fin'l; non-fin'l.
Operational-Functional = [med term
&] 'day to day management'
Held together by values & culture. eg
start-up.
workforce with temps & contract
support staff) = wide vs narrow. Scalar
Span of control
chain = tall vs&flat
enviroment reacts in a predicatble,
controlled way.
Sensor; Comparator;
forwards eg becomesEffector
its own supplier
or distributor. management; marketing
investments;
strategy Connected (shareholders,
groups);
customers,
interest suppliers,
= keep financiers).
informed. Low
interest,
understanding of objectives).satisfied.
high power = keep
Departures: disclosed & explained.
Philanthropic (desired byt not required
eg charitable donations)
shareholders; financiers; tax-man;
government; public
Reporting for ext'l users: fin'l
statements; tax; regulatory
fraud & intentional misstatements in
fin'l statements.
redesign of business processes to
performanceRelevant Aaccessible
Understandable
Timely Easy-to-use
Big Data - 3 Vs. Volume, Velocity,
Variety
chains enabled through e-business
links (eg
time, the web
be aware of & extranets).
budget & facilities
available)for
selected & direct
Changeover (see below).
changeover (eg
just payroll
users changesystem). Reducespoor
requirements; risk
resourcing
of change 2) Manner of change 3)
scope of change
& provide positive & negative re-
inforcement).
Exploit the driving forces & reduce the
effect of restraining forces
summary, review, cost-benefit review;
recommendations
Adaptive (to adapt to chaning
requirements eg new
focus; long-term; laws)
allows access to
expertise & Co. to focus on core&areas
of IT function (eg opportunities
costs) across org'n
between them are a potential source
of competative
process, productadvantage.
design, suppliers
performance, suppliers
they are working together = partners).
or against
each other.
problem solving, supplier respresentation
on site advantages and disadvantages of
having
each
exceedbutthe
this may lead
capacity to confusion
of the environment to
absorb them.
Feedback, Control Action, Continuous
Improvement
materials w/ ultimate aim of no sub-
standard output.
consistency, waste & cost of quality,
production sheduling, delivery times

resentment, practicalities lost on

employees
pride, standardisation & repeatability
- key elements of efficiency.

sequencing, scheduling, monitoring &

control
software integrate all departments
and functions
elimination of errors, costs will be
reduced.
complext than process, small clusters
of cells work
Decision on products)
Support System: see earlier
Expert Systems:
orientation seeon
(focus earlier
product
dev'p't)
Primary, Secondary. Qualitative,
Quantitative

Demographic, occupation, socio-economic,

geographic,
strenght in education,
serving aect
segment are: the
more it should be targeted.
competition, customers, corporate
strategy (penetration,
pricing (diff skimming))
price for same product
when sold in diff markets(
Question mark (requires investment),
Dog (divest)
Demand tails off as the product is
replaced by something newer.
marketing information in a form they
prefer.

bigger orders so more complex

transactions,
Selection Tests: personality tests, cognitive, psychometric, work profiency
participatory, enviroment, exercises
well planned, repetition & retenion

Techniques: Overall assessment (narrative); grading (numerical); behavioural incident methods (egs o

Capability, Breach of statutory duty,

Other substantial reason, redundancy

ncident methods (egs of behaviour from grades & characteristic); results orientated schemes (targets)
hemes (targets)
Area Model Author Main PointsIFRS Advisory Council
guidance),
IASB & IFRS& IFRS
framework Disadvantage (collabs
acceptedw/principles
industry = & advises
form frame IASB).
of
GAAP
framework & s reference for for fin'l reporting
Dynamic concept signifying all the
GAAP
IASB GAAP
fin'l rules which govern
Fin'l position (SOFP),accounting
Fin'l Performance
FRamework
Corporate statements (SPLOCI & statement
directors, shareholders of &cash
otherflows)
Governance
Corporate Definition stakeholders.
probity, responsibility, accountability,
Governance
Corporate Concepts
Principles vs reputation, judgement, Code
Corporate Governance integrity
Governance
External rules
expectations 2010 .report giving expression of
issue
Audits
External gap
Rights & opinion
GMs, give notice to hold GM, review
Audits
External duties an
Forming copy of
view? If written
no, opinion proposed resolutions
is modified/
Audits opinion
based qualified.
to change, can include prohibition/
Ethics guidance
Fundamental min. standards.
competence & due care,objectivity,
Ethics Principles professional behaviour
services, contingent fees, corporate
Ethics Threats finance), intimidation
review procedures, threat,of senior
rotation
Ethics
Conceptual Safeguards
characteristic staff.
Faithful Representation (free from
Framework
Conceptual s error,
Position:neutral,
Assets, complete)
Liabilities & equities.
Framework
financial Elements
Fundamental Performance: Income,
representation, going concern, expenses
statements
financial Requirements
accounting IAS1 accruals
standard,basisappropriate presentation.
statements
financial policy
accounting IAS8 E.g.
E.g. changesFIFO
LIFO-> in bad inventory accounting
debt provision, life
statements
financial estimates
accounting IAS8 of depreciable asset
account in the preparation & etc
statements
financial estimates
Operating IAS8 presentation
makers;have of those fin'l
discrete fin'l statements.
info
statements
financial segments
Interim Fin'l IFRS8 available.
in Equity; Statement of cash flows.
statements
Non-Current Reporting IAS 34 Selected
of note disclosures
use of assets economic benefits,
Assets I
Non-Current Measurement IAS16 periodic
the asset'sreview
originalof dep'n method
cost which has so
Assets I
Non-Current Depreciation
Depreciation IAS16 far Dep'n
Dr been written
Expense off.
(SPLOCI)
Assets I
Non-Current double entry
Changes in Cr Provision
recognise asfor dep'nto
income account
the extent(SOFP)
of
Assets I
Non-Current value IAS16 the reversal
deduct of the previous
in reporting the relevantdecrease.
Assets
Non-Current Grants
II Investment IAS 20 expense.
Owner occupied property cannot be
Assets
Non-Current Property
II Borrowing IAS40 classified
amount ofas investment
time to get ready property.
for
Assets
Non-Current costs
II assets & IAS 23 intended use/ sale.
future benefits flow ii) cost can be
Assets
Non-Current goodwill
III reliably measured
Assets III
Impairment of R&D / PIRATE
Recoverable Research
fair valueNOT recognised.
- selling costs vs Expensed
value inwhen i
Assets
assets held amount
discontinued IAS36 use - selling
as current costs
asset and not charged
for sale operations dep'n.
in the fin'l statements; other
Currency Concepts IAS21 currencies
its SOFP which treated were asobtained
foreign currency
in a
Translating Currency IAS21 foreign currency.
adjustment based on over/under
Income Taxes
the reporting IAS12 estimates
occur b/w end of previous
reporting periods.
period & date
period
Employee IAS 10 fin'l statements
monetary authorised for use.
(eg healthcare,
Benefits
Employee IAS19 accommodation)
assets to pay all employees benefits
Benefits of Indirect
Statement Pensions relating
liquid & to employee
readily service
convertible
Cash Flows Method investments w/ min. risk)
Statement of cash statement is different.
Cash Flowsof Direct
Statement Method
accounting [I'm assumingperformance,
management the rest is thesuppliers
same]
Cash Flowsof adv
Statement & disadv
Statement of can assess statement,
in primary ability to pay
not just as
Cash Flows Cash
Consolidated Group Flows reserves
20% voting rights)
SOFP
Consolidated Accounts
consolidated IFRS 10 uncancelled assets & liabilities
accounts
Consolidated accounts
Goodwill throughout
share capitalthe
+ group.
share premium +
accounts
Consolidated working
Intra-group retained earnings
overvalued inventory at acquisition
now held by B of
accounts
Statement of transactions 20.
Procedure: Combine all P & S results
Profit & Loss
comprehensiv from revenue
owners to profit
of parent for the year.
and controlling
e income interest
view [of subsidiary]
to dispose soon, investor ceases
Associates
Principles of 2 types to haveTax:
Direct significant
Chargesinfluence
directly on person/
taxation of taxation
Principles entity intended
HMRC to pay
focus: Equity, tax
Efficiency,
taxation
Tax Economicincidence
Effective Effects - person or entity
framework
Accounting who actually bears records.
normal accounting tax burden
for taxation:
profits & non-taxable income tax allowable
gains
International dep'n
resident in place of effective
Taxation
International Withholding management.
paid by foreign Co. foreign Co.'s
Taxation Tax profit
Leviedafter tax) & services, rather
on goods
Indirect
Workingtaxes than
spentind'ls or Co.'s
to start production & cash
capital
Working received form customer
few payables. Funds tied up could be
capital ratios invested profitably.
when there is a long operating or
Overtrading production cycle.
Enables management to make forward
Cash
Cash budget
Flow planning decisions.
deferred company tax; reducing
deficits
Cash Liquidity dividendresources;
finance paymentsguard against
Management Maintenance
Cash unexpected movements
deficit
Management working
Cash Overdrafts Terms:
used torepayable
pay pressing on demand
suppliers (as risk
Management FInancing
Cash capital of default time.
transport transferred
Bad debtsto bank).
risk also
Management Other
Cash Exports higher.
Government & local authority stocks:
Management
Cash investments
Other tradeable, low default risk
Management
Cash investments
Risks & Bills of exchange
inflation competition.
Management
Receivables & Return
Credit Control Higher returns mean higher
Overall terms; Procedures forrisk.
offering
payables
Receivables & Policies
Total credit Credit; Control
and refusing opportunities for sales
payables
Receivables & levels
Payment [on
thuscredit].
reduce financing costs; improve
payables
Receivables & Terms
Monitoring liquidity;
wants more encourage customers to buy
credit, receievables
payables
Receivables & receivables
Collecting eposurem
outsandingtightness
bal due, of
age policy)
analysis,
payables
Receivables & debts payment reminder).
for debts, factor finance, payment in
payables
Receivables & Factoring
Cedit advance
Specific receivable amount - claim
payables
Receivables & insurance
Payables if customer
against becomes
interest gained insolvent
through
payables
Managing management
Inventory having
lost monies
sales, for full period
emergency inventory, stock
Inventory
Managing Costs
Inventory out costs order placed when inventory
assumes
Inventory
Managing Costs
purchasing is zero(best
price & is recieved
value overimmediatly
time),
Inventory mix delivery (lead time & reliability)
More Detail2) Discussion paper 3) Exposure draft Applied to Marici Power
committee
4) IASB issues
purposes, IFRS. & implementing standards
preparing
still diff. w/in
standards. framework
National stock exchange rules. IFRS,
other countries' statutory
statements, Directors' report).requirements.
Underlying
Risk; controlassumption = going guard
systems, strategy, concern.
against
resource misuse, accountability to shareholders
rules, criminal sanctions. USA Sarbanes-Oxley Act
2002 (SOx). Gap: what auditors do & what
Expectations
people think
Duties: reportthey do truth and fairness of the fin'l
on the
statements.
Opinion Duty owed
(accounts to shareholders.
are materially misstated &
perverseexpectations,
regional therefore do not
diff give true &legally
to enforce fair view)
& if
voluntary cannot
employer. insist
client, req byon
law,compliance
permitted by
professional duty/ right
disciplinary procedures, external review,
corporate
Enhancing:governance regulations
Comparability, Verifiability,
Timeliness, Understandability
will flow to or from entity; item cas a vost or value
that can be no
separately, reliably measured
offsetting, comparative info
provided.
changes applied retrospectively, or that is is
impractical.
future periods. Nature of effect should be
disclosed.
impractical - an explanation of the circumstances
& how
are 10%error has been
or more corrected
of the combined assets of all
operating segments
WORTH READING THROUGH PRO FORMA OF FIN"L
STATEMENTS
life.Methods: straight line, reducing balance.
Consistency
C/Aat revisedimportant.
date - residual value/ remaining
usefulhas
asset life never has surplus then charge to
SPLOCI
grants, unfulfilled conditions & other
contingencies
model; or cost relating to grants
(dep'n) model. Therecognised.
choice will
apply to all investment property.
directly attributable to the acquisition,
construction
recognised asorasset,
production
ratherof a qualifying
has asset.
to be purchased.
Cannot
publishingbe amortised.
titles, customer lists & similar items
should not be recognised
end of reporting period. as intangible assets.
Impairment chargedprofit/loss,
revenue, expenses, as expense to profit
gain/ loss & loss.
recognised
presentation ascurrency;
assets, and related
sames rulestax expense.
used for
translating foreign operations.
revaluation gain/loss recognised in P/L, exchange
component goes to P/L.
Non-adjusting events concern conditions which
did not exist
maternity at are
pay) the recognised
end of the reporting
when the period.
absences
occur.
interest, contributions, remeasurement
gains/lossesofare
(payments recognised
finance in the accounts..
lease liabilities)
(dividends paid)
(Interest paid)
(income taxes paid)
manipulated; difficult/ impossible to audit;
gives away competitive
vs equity distribution: indicates information
proportion of
reinvestment/ return to investors
compliant consolidated account. Disclosures
regarding interest=inpaid
NOTE: Dividends other entities
from apply. to a
a subsidiary
parent company
subsidiary are notare cancelled with
aggregated on consolidation.
the parent
company's in consolidated
Dr Group retained earning accounts.
Cr Non-current
statement assets
of profit or loss and to the carrying
value of the
between asset.
parent & NCI depending on the NCI
interest in subsidiary's
Statement profits.
of Profit or Loss: Group share of
associate's
authority profit after
practice, tax
supranational bodies, int'l tax
treaties
Evasion = illegal
Avoidance =jurisdiction:
Competent legal, planning
the authority whose tax
laws apply to entity
records; entry & search; exchange info with tax
authorities in otherallowance,
balancing charge/ jurisdictionsif tax dep'n given is
more/less than actual dep'n amount.
another, it can claim double tax relief by:
deduction,
all payments exemption,
sent out ofcredit
country (eg interest
payments, dividends, royalties)
An entity will not charge VAT on its sales and
cannot reclaim
time taken VAT suffered
for customers on its purchases.
to pay
tune finished
Payables goods
turnover remain
period in inventory
= (average trade
payables / credit purchases) x 365
impending bankruptcy. Business need to balance
long-term view w/ short term imperatives.
BACS/ CHAPS
Standard
facility order/
(bank directwithout
lending debits obligation);
revolving facility
customer, (renewable
bank has to acceptafter a set period).
fluctuation in
balances
at short notice; shouldn't exceed asset life; can
have loan-overdraft
obtaining a guarantee mix.
of payment); international
credit unions;
(3month) loandocumentary
note issued by credits
companies. Traded
at discount, unsecured therefore
sum plus interest at maturity), risky.
or discount
basis (specified sum payable at
loans; convertible loan stocks; preferencematurity).
shares;
equities
legislation)); Control (receivables ageing reports,
chasing slow
relating to payers) risk of default, seasonal
customer,
factors
where d is discount offered (5% = 5, etc) & t is
the reduction in paymet period in days
dept.; legal action; external debt collection
agency
w/ customer, cost of interest on advance. If with
recourse then still risk of bad debts.
should older amount be investigated & discputed
(accounting
Min inventoryerrors)?
level (safe inventory) = reorder
level - (average
inventory usuage
quantity x average
x annual lead time)
unit inventory
holding costs
inventory is being held at each branch, only one
buying dept. needed.