I need help with qn 8 (b)&(c), i have answers to part (a).

could you give me a detail explantion to part (b) &(c)

Question 8 (a) Explain the purpose and methods of Strategy Analysis. How does good Strategy Analysis lead to better valuations? (10 marks) (b) Give examples of financial ratios and explain how they allow us to assess the current economic performance of a company. (10 marks) (c) Is the intrinsic valuation of a firm's equity affected by accounting choices made by analysts? Explain. (5 marks) Reading for this question Chapters 3, 5 and 6 of the subject guide, and associated readings. Approaching the question (a) Candidates were expected to explain how Strategy Analysis (BSA) acts as a foundation for each of the other stages-for example, once you understand what business the company is in: you know what accounting policies it should be using supports Accounting Analysis, AA) you know how to interpret its financial ratios (supports Financial Analysis, FA) you know how it should finance itself (supports Prospective Analysis, PA) and once you have assessed its risks, opportunities and competitive environment you can make sound forecasts (PA) etc. (b) Here it is probably safest to give examples across a range of profitability, liquidity, solvency, efficiency and other ratios, to explain how one might use them, and how they might be interpreted in different ways. It is only a more complete set of ratios which allows us to put together a coherent assessment. (c) This is a question about mathematical equivalence and accounting bias. Candidates can use examples such as depreciation regimes or intangible assets to illustrate, and if you can think of some simple numerical illustrations, then this may be helpful. Unless unrecognised bias skews our forecasts, accounting choices will have no effect on the valuation. They will, however, affect performance ratios. 27 in me pose and medium ad to 10 mars NA condocring each one wichten over OCE met of Medetand meegegep, Mediterence betwe cu motion and we dessed posti organisation 11 Aitwangent team has men onderstand and then they sem se 5 TEST 10 svwOT ng 3) winnes Portor's five fores Modes wiue chain Morinsey's Sun S A PEST 2 Sande fer calm Sal and Technologic Analys and desobes. Damon mab whers used wiwasan ng component of management SWOT Ancount KAN 2 starte mwing method wed to evo me mengteWeakness opportunines and met wewed in a project or in a lesines verture 3 wolves spruitying to Obiectives of the business were or project and identifying me wernal and na CNS that one evoluable or unfono 6 achieving the active the treaker sulkune products Helpful Harmful The of entry ww competitors Internal Strength Wames - The newly competitive rivalry External opportunities TWEAR wargaining power of womer suppliers Michael Poners 5 forces Analysis Value chain Analysis Value chain anavysis is based on the principle that organismory exity to create want to the customers. In the analysis, the orqanications getivities are divided to separates senectivities ar add value. The 3 steps que #1 separare the organisations operatione vnap primary and support activities #2 Allocate cost to each activity #3 Identily me activimes that are impr 40 wystomer's copy NE Mexinseys to Model It is a management model that describes factors to organise a company in an honetic and erective way Together these factors determine the way in which a corporation operates. Manage should take to account + factors, to be sure of successful implementahon Of a shategy POP bazic #Strategy # System Structure Skills # $16 # shared value TH