In organisation structure entities are classified by Miles and Snow as one of prospectors, defenders, analysers and reactors. However, while analysers seldom exist in practice, likewise analysers combine attributes common to both the defenders and prospectors as stand alone entities. The interest is to measure the impact of adopted business strategy on tax behaviour of listed companies in Nigeria. Please, promptness in your response will be appreciated.
I think it is better if you adopt some survey questioners? then it may be easy to identify their typology which involves one of the strategic types: defenders, prospectors, analysers and reactors. Finally, you will consider their tax behaviour parameters.
Hi Akeem, There are two schools of thought, one suggests that a firm follow both strategy as combine at time while the other school of though says that firms must have to distinguish about the two strategy and the two will be perform exclusively. The two strategies pertains separate extraction and out puts. Dont to be worried about, the strategy can be measured through survey and secondary data based.
Defenders will try to use the same methods as prospectors, hoping to add value without attracting a hostile take over.
Net tangible assets and growth rate are probably the most researched financial parameters. As a result both parameters have declined over time as assets are withdrawn and debt is increased to support the business.
The rapid growth of debt puts instability into the whole economy.
In most cases analysis is done on income statement, cash flow, and balance sheet. From these over several reporting periods it is possible to compute the break even sales and the operating cost per dollar of sales. Costs separate easily into fixed cost and variable cost. The analyst compares competing companies to discover competitive advantage, lean cost structure, and in some cases an impossible result that points to inaccuracy in the reporting.