Within any business, having an understanding of the internal and external environment is very important. By undertaking internal and external analysis, a business manager can seek to gain a better understanding not only of the way in which the business operates, but also how the business may be affected by its external environment. Within this module we are going to be considering two distinct and yet interrelated areas of analysis, business analysis and financial analysis.
We will start this module by considering some of the ways in which business analysis can be undertaken. This relates both to the competitive environment and the general environment of the business. Following this, we will then begin to focus on financial analysis in more detail. We will firstly look in Unit 2 at the concept of financial statements and how these are created. Then in Unit 3 we will consider some of the ways in which financial statements can be analysed. We will particularly focus on ratio analysis as one of the key forms of financial analysis.
In Unit 4 we will then consider how capital investment decisions can be assisted through the use of financial and business analysis, before we finally consider issues of budgeting and risk within unit 5.
By the end of this module you should have a good understanding of the nature of business analysis and financial analysis, and you will be able to apply some of the tools of business analysis and financial analysis to your own work.