Dupont Exam

Please, explain or give extended answer (3p for each question)

1) Strategic plan might consist of

2) Please name the main methods and tools for contemporary Strategy Analysis.

3) What is meant by Balanced Scorecard? (Please enumerate the main measurable performance categories)

• Financial - incloude profitability, leverage and stock price
• Internal bussiness process - ranks contribution margin and days of working capital
• Customer - examines the company’s product line inclouding how well it satisfies buying criteria and awareness
• learning and growth - evaluates employee productivity

4) Name and describe Capstone basic strategies? (2p)

• Cost leader with Product Lifecycle focus
• Differentiation with Product Lifecycle focus
• Broad Cost leader
• Broad Differentiation
• Niche cost leader (low technology)
• Niche differentiator (high technology)

5) What are the 6 basic tactics in Capstone? (2p)

• Repositioning product
• Marketing product
• Scheduling production
• Modifying plant and equipment
• Raising money and paying debt
• Inventing new products

6) Please complete the equations. (2p)

• Return on sales (or profitability) = …Profit/Sales…
• Sales/Asset = ……Asset Turnover or "Turnover"….
• Leverage = …..Assets.../Equity
• …...Total assent......... = Liability + Equity
• ROI = … Profit/Investment………….
• Profitability * ……Turnover…… = ROA
• Profit/ … Equity…. = ROE

7) Please write the equation which is commonly known as the DuPont Chain. (2p)

DuPont formula = (Net profit / Revenue) * (Revenue / Total assets) * (Total assets / Equity) = Net profit margin * Asset Turnover * Financial leverage

8) True or false. Asset turnover is sales, generated in a particular year, divided by the same period. (1p)

9)  If a company issues $2,000,000 and shares trade at $50.00 per share, the …Market Cap =2 mln*50……….. ? (1p)

10) If assests = $2,000,000 and Owner’s equity = $1,000,000, than Leverage is ……2……… .(1p)