205 analysing non-financial performance Flashcards
1
Q
how can a customer attitude survey be used to evauate performance
A
- mesures the extent towhcih customer expecatations are met or exceeded eg. in ters of price/good service.
- business concideres thelevel of repeat purchases, amount of customer complaints, percebatage of products returned and feedback from focus groups
2
Q
how can market share be used to evaluate perfromance
A
- market share is the proportion of total sales a business has in the market
- increasing market share is an indicator of:
-brand loyalty
-competitive advanatge
-profitibility (due to economies of scale)
3
Q
how can an environmental record be used to evaluate performance
A
- shows how effectively it manages its enviromental imact eg. recycling
- business can asses how well it meets susatinibility targts, reduces waste- impacts efficiency
- for some busisnes environmental aims more important than maximising profits/market share
4
Q
how can employee atttitude surveys be used to evalaute performance
A
survey will allow a business to-> identify issues eg.low employee satisfaction- see how motivation can be improved
-business can use this data in relation to labour turnover/early leavers to make imporvments with recruietment and selection procses, ewared policies, communicaiton systems
-increases sales
5
Q
how can productivity be used to evaluate performance
A
- labour prodcutivity can be used by mesuring output per employee
-business can asses workplace efficiency and identify areas to improve procseses and resources allocation - highr productivity can reduce average cists and make the business more competitive
6
Q
how can sales target be used to evalaute performace
A
- compares actual sales to targted sales
- involves spending money in the short term to generate sales revenue-reducing profitibility
- eg.loss leader products- selling product at a lower price to attarct customerss to buy more profitibale items
