1.

​ Describe 3 initiatives to have an ethical culture in your company

-​ Recognition, code of ethics, and encourage reflection
2.​ Risk assessment is a tool that companies use to measure customer satisfaction (False)
-​ It is a tool to analyze Identify, assess, mitigating potential risks that may impact a
business's objectives or operations
-​ To measure customer satisfaction you have to use customer surveys or mystery
shoppers
3.​ According to your company's financial structure explain the main sources of financing
-​ Mercado Libre raises funds through equity offerings (shares in the market)
and also by having private investments
4.​ Strategy is a set of integrated activities to achieve the main objectives of a company
(True)
-​ Strategy is the direction and scope of an organization over the long term,
which achieves advantage in a changing environment through its
configuration of resources and competencies with the aim of fulfilling
stakeholder expectations.
5.​ Why do companies perform the SWOT analysis?
-​ summarises the key issues from the business environment and the strategic
capability of an organization that is most likely to impact strategy development.
This can be useful as a basis against which to judge future strategic choices. it
examines strengths, weaknesses, opportunities, and threats relative to those of
competitors
-​ helping them make strategic decisions, capitalize on advantages, mitigate risks,
and adapt to changes in their environment.
6.​ What are the differences between PESTEL and the 5forces Porter framework?
-​ PESTEL → Focuses on external macro-environmental factors affecting an
industry or company. And helps identify risks and opportunities from the
external environment for strategic planning.
-​ 5 forces → Focuses on industry-specific competitive dynamics. Analyzes
competitive forces: threat of new entrants, threat of substitutes, bargaining
power of buyers, bargaining power of suppliers, and competitive rivalry.
Helps understand profitability and competitive strategy within an industry.
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7.​ ROA indicator shows the debt level of a company (FALSE)
-​ ROA stands for Return over assets, meaning it shows the efficiency of the assets
and the profitability that generates
-​ The solvency shows the level of debt of the company
8.​ Mention and explain 3 finance principles used in Walmart's strategy to improve financial
performance
-​ Operational Efficiency and Logistics: Walmart has been known for its focus on
operational efficiency and logistics management. The company constantly seeks
ways to streamline processes, cut costs, and enhance productivity across its
supply chain, from procurement to distribution and warehousing.
 -​ Low Price Strategy: Walmart is renowned for its strategy of offering low prices to
its customers. This strategy not only attracts consumers but also contributes to
improving the company's financial performance by driving sales and customer
loyalty. Walmart works closely with its suppliers to negotiate low prices and
passes those savings on to its customers.
-​ Technological Innovation: Walmart has made significant investments in
technology to enhance its operations and customer experience. From advanced
inventory management systems to mobile applications for online shopping,
Walmart utilizes technology to streamline processes, offer more convenient
services to customers, and adapt to constantly evolving market trends. This
technological innovation helps improve efficiency and profitability for the
company.
-​ Sustainable growth
9.​ Describe 2 goals of your group company
-​ The company aims to provide a platform where people can buy and sell goods
and services easily, fostering economic development and inclusion in the region.
-​ The vision of Mercado Libre is to be the leading e-commerce company in Latin
America. This involves not only providing a marketplace for buying and selling
but also incorporating various financial and technological services
10.​Explain the differences between internal and external analysis
-​ The internal analysis is based on the analysis of the company itself like SW
employees, etc., instead, the external analysis is about every external factor that
can have an impact on the company, like competitors, social environment,
politics, etc
11.​Mention 2 advantages and 2 disadvantages of doing M&A as a strategy for growth
-​ Advantages:
1.​ Elimination of competitors (if the merge is horizontal), if you integrate a
supplier (vertical ) you can cut costs
2.​ Grow and diversification
-​ Disadvantages:
1.​ Large quantity of money required
2.​ Most M&As do not go as expected
3.​ Cultural clashes
4.​ Sometimes you do not know the debts that the other company have
12.​Describe the difference between market value and book value
-​ book value represents the value of a company's assets according to its
accounting records (equity of the company) (past info) → is the value of a
company's assets minus its liabilities, according to its financial statements. →
represents historical accounting data.
-​ market value reflects the value of the company as perceived by investors in the
stock market. (adjusted book value) .- future information
13.​Vision means why the company is a business (False)
-​ The mission is the overall purpose of the company, meaning the why of the
company. On the other hand, the vision is the desired future of the company.
14.​The balanced scorecard only includes financial indicators of a company (False)
-​ The balanced scorecard includes both financial (ROE, ROA) and non-financial
indicators of a company (customer satisfaction, employment).
15.​Explain the differences between SWOT analysis and the BCG matrix
-​ SWOT analysis focuses on assessing internal strengths and weaknesses and
external opportunities and threats to inform overall strategic planning
-​ the BCG matrix is specifically designed to analyze and manage a company's
portfolio of SBUs or products based on their market growth and relative market
share → analyses the different SBUs of the company and see which of them are
the ones that generate more profits
16.​Mention and explain 3 main risks when you evaluate an M&A
-​ One of the risks is the uncertainty for the customers because it could lead to
product/service changes, also pricing, and this leads to losing customers
-​ Another risk is the financial risk that may be debts of the other company, or
overpaying the company
-​ Finally, operational risk could happen because of having two different cultures
and work ethics
-​ Lawsuits against the other company
17.​Describe 3 activities performed by the finance department
-​ Evaluate performance
-​ Decision making
-​ Monitor key areas (with the balanced scorecard)
-​ Cost Leadership Strategy:. This principle involves controlling expenses rigorously
across all aspects of the business, including procurement, distribution, and
operational efficiency
-​ Efficient Supply Chain Managementoptimizing their supply chain to minimize
inventory holding costs, reduce stockouts, and improve product availability.
-​ Data-Driven Decision Making: Through advanced analytics and technology, they
gather and analyze vast amounts of data related to customer preferences,
purchasing patterns, inventory levels, and market trends.
18.​Which ones are the steps to build a strategic plan?
1.​ Mission - Vission
2.​ Objectives & goals
3.​ Present diagnosis
4.​ Strategic plan preparation (swot)
5.​ Implementation
6.​ Control
19.​How does culture affect the strategy of a company?
-​ "Culture eats strategy for breakfast" Culture forms the strategy.
-​ The culture affects the strategy of a company in a way that the company will start
making business and also in the way that they will develop their activities.
-​ Culture: the way we do things (instinctive reactions and behaviors).
Culture is shaped by shared goals, values, mindsets, and beliefs.
 -​ Culture shapes how decisions are made, communication occurs, innovation is
fostered, leadership is approached, and employees are engaged, directly
impacting the company's strategy.
20.​Detail 3 strategic initiatives to improve results in your company
-​ Proposal shopping program → Implement a program that allows customers to
make purchases for a social or environmental purpose.
-​ Skills, products, and Service exchange platform → Create an integrated platform
within Mercado Libre where users can exchange skills and services instead of
money.
-​ Virtual assistant for personalized shopping → Develop and launch a virtual
assistant integrated into the Mercado Libre platform that utilizes artificial
intelligence to offer personalized product recommendations and assistance
during the purchasing process.
21.​ROE shows the level of liquidity of a company (False)
-​ ROE measures the return generated on shareholders' equity investment in the
company (plata de los SH)
-​ Mide la rentabilidad que una empresa genera utilizando el dinero invertido por sus
accionistas
22.​Explain the 5 forces Porter framework and describe the weaknesses or missing concepts
of such a tool
-​ I Porter analyses the competitive dynamics and attractiveness of an industry from
the point of view of a company. It helps develop effective strategies to navigate
and thrive in their respective markets
-​ It has limitations in capturing certain aspects of dynamic and rapidly evolving
industries, such as technological disruptions, regulatory changes, and shifts in
consumer behavior.
-​ It may not always provide actionable insights in industries where traditional
competitive forces are less relevant or where the boundaries between industries
are blurred
23.​Mention 2 reasons why a company should not prepare a one-year business plan
-​ Rapidly Changing Market Dynamics: In industries where market conditions
evolve swiftly, a one-year business plan might become obsolete before it's fully
executed.
-​ Uncertain External Factors: Economic, political, or social uncertainties can
significantly impact business operations and outcomes.
-​ Lack of Flexibility: A one-year business plan may lock the company into a rigid
set of goals and strategies, leaving little room for adaptation or course correction
in response to unforeseen events or changing market dynamics. Without
flexibility, the company may struggle to respond effectively to emerging
opportunities or challenges throughout the yea
-​ Inconsistent Profitability: If a company operates in a sector with
fluctuating revenue streams or experiences short-term losses due to
 investments or market conditions, a one-year plan may not accurately
reflect its financial trajectory
24.​People read financial statements to analyze the quality of products and customer
satisfaction (False)
-​ False, people read financial statements to assess the company financial health,
performance, and stability of a company, as well as to make informed investment
decisions
-​ To analyze the quality of a product and customer satisfaction you have to read
the marketing statements
25.​Mission statement is what the company wants to become in the future (False)
-​ The vision is what the company wants to be in the future
26.​Define the strategy for a company. Give the example of your group company
-​ Strategy -It is about choices → making choices on how we will achieve the
objectives set in the mission. It delineates the approach and actions needed to
progress toward the desired future state
-​ For Meli, the strategy is about Mercado Libre's mission to democratize commerce
and payments, making them accessible to all in Latin America. The company
aims to provide a platform where people can buy and sell goods and services
easily, fostering economic development and inclusion in the region.
27.​Controlling is the management function which focuses on achieving goals (False)
-​ Controlling will help improve performance.
-​ The strategy is the management function that focuses on achieving goals
28.​The objectives for preparing an annual budget are the following (?????)
a.​ Plan the future, it serves as a
b.​ Comply with accounting rules (financial statement → auditor report)
c.​ Control performance (step de la strategic plan)
d.​ Define responsibilities
29.​Explain the weakness that Walmart is facing in the present market. How should the
company change its strategy to deal with these new risks?
-​ Hay muchos customers que ocmparan en online sales, y hay mucho costo con los
supermercados y deberian enfocarse en las online sales yv acotar costos de los
sitios fisicos
-​ Many competitors in online sales, change the way to sell and not become obsolete
30.​Analyze and conclude regarding the economic and financial situation of the following
companies
a.​ Firm 1 → because its current assets cover its current liabilities
●​ Current assets = 1000$
●​ Non current assets = 2000$
●​ Current liabilities = 800$
●​ Equity = 2200$
b.​ Firm 2
●​ Current assets = 1500$
●​ Non current assets = 3000$
●​ Current liabilities = 1800$
 ●​ Equity = 2700$

PREGUNTAS EN CLASE
1.​ The integration process comes before you buy another company.
-​ False first you buy then you do the integration process
2.​ Synergy is a potential saving that a company could have by buying another company.
-​ True, potential revenues! Could be False, saving, or revenues.
-​ Synergy can be when merging companies to save cost and can increase revenue
3.​ Enumerate 5 information requests to analyze a purchase from another company:
1.​ financial balance sheet statement (sales, debt)
2.​ Contracts
3.​ Ethics
4.​ information hr
5.​ mission and vision
6.​ Assets
7.​ Competitors
8.​ Organizational structure
4. Describe cash flow
-​ Assets, profits and losses
5. Which initiative uses your company to teach the culture:
-​ Training events
-​ Posters
-​ mails