Business and Management

Discuss briefly the difference between strategic and tactical decision making.
A. Is the decision to enter the handbag distribution business strategic or tactical?
B. What indications of financial performance must a company consider in evaluating whether an investment has
successfully increased shareholder wealth?
Calculate liquidity ratios of the firm for the prior year and current year: current ratio, inventory turnover, and
the accounts receivable turnover (for the denominator of the turnover ratios, use the year presented). Show your
calculations and interpret the trend. What conclusions do you draw from this analysis?
B. Calculate the following solvency ratios of the firm for the prior year and current year: debt to equity and
times interest earned. Show your calculations and interpret the trend. What conclusions do you draw from this
analysis?
C. Calculate the following profitability ratios of the firm for the prior year and current year: gross profit
margin, net profit margin, return on assets, and return on equity (for the denominator of the return ratios, use the
year presented). Show your calculations and interpret the trend. What conclusions do you draw from this analysis?