Sensitivity Analysis Examines the Effect of Changing One or More

question 4

Short Answer

Sensitivity analysis examines the effect of changing one or more ______________ to observe the effect on results.

Understand the BCG business portfolio analysis framework and its application.

Classify strategic business units (SBUs) according to the BCG matrix quadrants.

Identify strategies to enhance an SBU's position within the BCG matrix.

Understand the concepts of market penetration, market development, product development, and diversification strategies.

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Definitions:

Operating Cash Flow

Cash generated by a company's normal business operations, indicating whether a company can maintain and grow its operations.

Fixed Assets

Physical assets with a long lifespan that serve operational purposes in a business and aren't likely to be sold or used up within a year.

Stockholders

Individuals or entities that own shares in a corporation, thus holding partial ownership of the company.

Current Assets

Refers to assets that a company expects to convert into cash within one year or one business cycle, whichever is longer.