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36 Cards in this Set

  • Front
  • Back
cash generation
realization of cash from what you do, where everyone is involved
what is the purpose of business?
to create a customer
return on investment
a profit from an investment expressed as a percentage of your return
financial measures are...
a way of understanding your financial state, a calculation between data sets
cash flows and time value of money are notions that have ____ as their major factor
finance and economics are the study of...
how we represent and manage resources in the pursuit of growth
net margin
total revenue minus direct and indirest costs
sales, general, and administrative
net present value
takes into account cash flows and time value of money to determine whether an investment makes sense
innovation is...
wide in focus, large scale adoption; something newly created that is widely adopted
invention is...
narrow in focus; an idea
measures of value and efficiency
sales forecast
estimate of demand
why do sensitivity analysis?
to answer what if questions by calculating the NPV vs changes in various dimensions
6 nuclei of business
1. cash generation, 2. margins, 3. return on assets, 4. velocity, 5. growth, 6. customers
capacity to satisfy demand
cash flow statements
a document that tracks your in-flow and out-flow of cash
cash flows are...
a pattern of income and expenses that exist for a given economic situation
key challenge: moving from a cost-based mindset
to an investment-based mindset
for customers, you must...
develop an empathy so that your offering resonates
turn; the speed at which value is delivered
reflection of value created over time
profit margin
measure of value
spreadsheets are a...
tool to build numeric models that give you a sense of the dynamic behavior of a situation
gross margin
total revenue minus direct costs
time value of money
a notion that states if you design the way you appropriate your investments, you will have more today than you would otherwise
What does Drucker say profit is?
NOT the purpose of business; it is a measure, a test of validity
to spend or devote resources for a future advantage
an investment-based mindset is focused on...
FUTURE benefits and the time value of money
true measure
cash flow exist to...
work with the time value of money
sensitivity analysis
gives you a sensitivity to key assumptions in your financial model
cost-based mindset is focused on...
the now
marketing is a...
full life cycle activity
ramp-up costs
costs incured up front to start a project
return on assets
ratio of return over assets employed (including fixed)