Zara: Strategic Analysis of Financial and Competitive Positioning
Corporate Governance
Corporate governance encompasses relationships between management, the board, shareholders, and stakeholders. It provides the structure for setting objectives, achieving them, and monitoring progress. Benefits: improved access to financing, lower capital costs, better accounting performance, higher prices, increased firm valuation and share performance, and reduced risk of crises.
Formulas
Economic Value Added (EVA): EVA = ROIC – WACC
Weighted Average Cost of Capital (WACC): WACC
Read MoreUnderstanding Economics: A Comprehensive Overview
Economics: An Overview
What is Economics?
Economics, a branch of social science, studies the production, distribution, and consumption of goods and services. It examines how societies organize and manage economic activity.
- Definition: Economics explores how society decides what to produce, how to produce it, and for whom, given limited resources.
- Resource Management: It analyzes how scarce resources are managed to produce and distribute goods and services among society’s members.
- Resource Allocation:
Understanding Customer Behavior and Marketing Strategies
Customer Classification Based on Decision-Making
There are three key figures involved in purchase decisions:
- The Prescriber: A professional who recommends the product and whose opinion is valued by the consumer.
- The Buyer: The person who purchases the product, who may not be the end consumer.
- The Consumer: The individual who ultimately uses the product to meet their needs.
Buying Habits
To fully analyze consumer behavior, several questions about shopping habits must be addressed:
- Who buys? In many cases,
International Finance and Open Economy Macroeconomics
Balance of Payments (BOP)
BOP as a Registry of Transactions
Definition: Tracks trade (goods & services) and capital flows (financial assets for money) between residents and non-residents over a period.
Double-Entry Accounting: Every transaction has a credit (inflow) and debit (outflow) entry, ensuring the BOP balances overall.
Challenges: Detecting transactions can be difficult due to issues like smuggling or capital flight, where only one side may be recorded.
Open Economy: The BOP grows as a country
Read MoreFilm Distribution and Exhibition: A Comprehensive Overview
Film Distribution and Exhibition
Legal and Structural Classification of Theaters
Rooms can be classified according to two criteria:
- Legal Criteria: Theaters are classified as either standard theaters or halls x, which are permitted to project X-rated movies subject to special advertising classification and higher VAT.
- Structural Criteria: This classification depends on capacity and screen availability, encompassing the following categories:
Theater Types
- Parker: Large-capacity, single-screen theaters
Business Fundamentals: Costs, Financing, and Investment Strategies
Distribution Channels
A distribution channel comprises all intermediaries between producers and consumers, facilitating product movement. Channels are categorized by the number of intermediaries:
- Short Channel: Few intermediaries operate.
- Long Channel: Many intermediaries are involved.
Distribution Process
- Manufacturer: Develops the product and sells to the wholesaler.
- Wholesaler: Purchases large product quantities from the manufacturer and sells to other intermediaries.
- Retailer: Purchases products from