Summary: Business Formula

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  • 1 Business Formula

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  • Net Gain (decision tree)

    Expected value - Initial cost of decision
  • Market growth % in a yr

    Change in size of the market from year 1 to year 2/ the size of the market in the 1st year
  • Sales Growth % in a yr

    Change in sales of product from year 1 to year 2/ sales of product in year 1
  • Operating Profit margins (%)

    Operating profit/ sales revenue, all X100
  • Employee retention rate (%)

    (no. of employees at end of period - no. of leavers)/ no. of employees at end of period
  • Average rate of return % (ARR)

    (Net return from project/ no. of years)/ initial cost of project
     Net return = total income - total cost
  • Tannenbaum Schmidt Continuum

    Highlights the range of different management styles
  • Blake Moulton Grid

     different management styles relating to task and people
  • Hackman and Oldham's model of job design

    influences how they motivate their workers
  • Bowman's strategic clock

    different strategies effect the competitivity
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