APPLIES TO ACADEMIC YEAR 2016/2017 Norwegian version

VHL 3558 Business Analysis and Calculation in Retailing

Responsible for the course
Robert Ingvaldsen

Department
Department of Marketing

Term
According to study plan

ECTS Credits
7,5

Language of instruction
Norwegian

Introduction
The retail trade is an industry undergoing a rapid development and it is characterized by fierce competition. The owners, officers, employees and other interested parties in this trade are dependent on financial control in the individual shop. This requires necessary knowledge and skills in the area of finance and calculation in order to secure reliable operation and future yield.

Learning outcome
On completion of the course in Business Analysis and Calculation in Retailing, the students should be able to carry out calculations and analyses showing the financial development of an enterprise. The objective is to create an understanding of how economics can be applied in practice as a basis for decision-making in connection with planning and follow-up of the enterprise and in connection with corrective measures related to operations. Furthermore, they are to understand the importance a critical attitude to such analyses and the information presented in the financial statements. The students should also be able to comment on the analyses and assess measures that may be implemented to follow up on the financial objectives of the enterprise.

Acquired knowledge

• A general understanding of how economics can be applied in practice as a basis for decision-making in connection with planning and follow-up of the enterprise and in connection with corrective measures related to operations.
• A special understanding of the need for financial management in modern retailing enterprises.
• An understanding that a sound retail concept depends on a focused Pricestrategy

• Be able to perform calculations and analyses showing the financial development of a retailing enterprise.
• Be able to comment on financial analyses and assess measures that can be implemented to follow up on the financial goals of the enterprise.
• Be able to calculate prices and follow up through actual cost calculations by means of the “calculation column”.
• Be familiar with gross profit as a concept and how it may be applied to utilize the possibilities presented by better purchase, better calculations, better control of price reductions and reduced wastage.

• Understand the importance of a critical attitude to short-term periodic analyses and to the information presented in the financial statements.
• Understand there are som legal and etical pricing issues
• Develop a general focus

• Costs and income, including gross and net turnover
• Calculation and pricing, including the contribution method and the full costing method, the calculation column, selective calculation
• Pricing, including price elasticity, price sensitivity, reference price
• Markup, and Markdowns.
• Balance sheet and profit and loss statement, principles
• Gross profit and contribution margin stated in NOK an as a percentage
• Analyses, salary percentage, return on assets (equity and total assets)
• The purchasing budget and the sales budget
• Liquidity planning
• Price strategies. How to fight a price war
• Price discrimination
• Price promotion