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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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