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Using Financial Analysis to Assess and Improve Business Performance

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Please provide three examples of how financial analysis can be used to assess and improve business performance. How do financial analysis tools help managers and their companies?

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Financial analysis implies evaluation of the performance of the business in such a way that the maximum return can be attained from the investment made in the business. Financial analysis highlights the weaknesses in the business, and therefore steps can be taken to remove the weaknesses. Financial analysis will provide both internal and external information to the managers. Examples of tools used for financial analysis are: ratio analysis, trend analysis, comparative income statement, common size statements, balance score card, etc.

Ratio analysis informs the managers about the financial performance of the company. For example, if ...

Solution Summary

This solution provides three examples of how a financial analysis can be used to assess and improve a business's performance, including how exactly financial analysis tools help managers and the companies they are affiliated with.

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Integrated Case Project: System Feedback Loops for National Presto Industries Inc.


In this final Case of the Integrated Case Project, you will take a look at feedback loops in National Presto Industries, Inc. Identify one Balancing Loop and one Reinforcing Loop. Draw on the background readings from this module in constructing your diagnosis. Within each of these feedback loops there are opportunities for learning and improvement.


Bellinger, G. (2004) Introduction to systems thinking. Retrieved from http://www.systems-thinking.org/intst/int.htm


You need to present two cases in this paper. For each Feedback Loop (Balancing and Reinforcing) Make a Case for the Learning Opportunities.

Be sure to include references.


This is what you need to do:

*Generate evidence for the grounds of your cases. Describe each Feedback Loop that you identify in National Presto Industries, Inc. and explain why you selected them. Make sure you explain the Loop, the cause and effect process within the Loop. You could also include a Causal Loop Diagram. If you do, show the arrows and direction of affect (+ or -). Also, determine what the warrant is for your case.

*Briefly discuss the theory of organizational learning (the warrant and additional grounds.

*Identify the opportunities for organizational learning in each Feedback Loop. Make a Case that these are learning opportunities. Logically show how the feedback process provides an opportunity for the organization to learn and improve its performance. Be precise. Depth and breadth in your discussion is always a good thing.

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