The Market Continues to Grow

The market continues to grow. Chances are you will make significant investments in new plant and equipment. What mix of long term debt, stock issues, and retained earnings will you use to fund investments? Why your particular mix?

List your performance ratios and the priority weights that you want to give to them. The most you can weight each measure is 40%. Your weights must ad up to 100%. Therefore, you must select at least three measures.

Predict the effect your performance measures will have on these tactics:

• Inventing a new product
• Reducing price
• Adding automation
• Adding capacity
• Increasing promotion and sales budgets
• Abandoning a segment to concentrate on a niche position
• Harvesting an old product