03 BUS 444 Chap 3

Employee bargaining power 2 employee replacement cost

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Unformatted text preview: actors help explain the extent to which employees and managers will be able to obtain a proportionately high level of the profits that they generate 1. Employee bargaining power 2. Employee replacement cost 3. Employee exit costs 4. Manager bargaining power 3-29 Evaluating Firm Performance • Financial ratio analysis Balance sheet Income statement Historical comparison Comparison with industry norms Comparison with key competitors • Stakeholder perspective Employees Customers Owners 3-30 Financial Ratio Analysis • Five types of financial ratios Short-term solvency or liquidity Long-term solvency measures Asset management (or turnover) Profitability Market value 3-31 Financial Ratio Analysis • Historical comparisons • Comparison with industry norms • Comparison with key competitors 3-32 Five Types of Financial Ratios 3-33 The Balance Scorecard • Provides a meaningful integration of many issues that come into evaluating a firm’s performance • Four key perspectives How do customers see us? What must we excel at? Can we continue to improve and create value? How do we look to shareholders? 3-34 Customer Perspective • Time • Quality • Performance and service • Cost 3-35 Internal Business Perspective • Processes • Decisions • Actions • Coordination • Resources and capabilities 3-36 Innovation and Learning Perspective • Introduction of new products and services • Greater value for customers • Increased operating effici...
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