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13 Cards in this Set
- Front
- Back
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Business condition
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An economic factor that cannot be altered by management. Compare with strategic choice. 534
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Competitive advantage period
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The time that unusually high profitability takes to revert to a normal level. 526
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Driver pattern
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The behavior of a driver over time. 525
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Fade rate
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The rate at which a driver reverts to a typical level; also called persistence rate. 526
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Financial asset buildup
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Increasing financial assets (from free cash flow net of dividends). 543
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Forces of competition
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The tendency of economic factors to force drivers to typical levels. 526
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Full-information forecasting
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Forecasting with complete information about the economic factors affecting the business. Compare with simple forecasting. 535
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Key Driver
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A driver that is particuarly important to the value generation of a firm. 531
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Red-flag indicator
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Information that indicates deterioration in a firm's profitability. 548
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Strategic choice or strategic plan
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A decision to determine an economic factor. Compare with business condition. 535
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Unarticulated strategy
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A strategy that is not specific enough to evaluate with pro forma analysis. 549
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Value type
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Classifies a firm by its key driver. 532
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ReOI
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pg 541
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