4B Flashcards
Key performance indicators(KPI’s)(n.)
-Key performance indicators(KPIs)(n.)=Criteria that measure a business’s efficiency and effectiveness in achieving its different objectives.
Net profit figures indicates=
-financial performance
-can be used to compare competitors
-Possible indicator of quality in certain situations
Net profit figures(n.)
-Net profit figures(n.)=Calculated by subtracting total expenses incurred from total business revenue earned, over a specific period of time.
Number of sales indicates=
-financial performance
-customer satisfaction
Number of sales(n.)
-Number of sales(n.)=The total quantity of goods and services sold by a business over a specific period of time
Number of customer complaints(n.)
-Number of customer complaints(n.)=The number of customers who notified the business of their dissatisfaction over a specific period of time.
Percentage of market share(n.)
-Percentage of market share(n.)=The proportion of a business’s total sales, compared to the total sales in the industry expressed as a percentage figure.
Level of staff turnover(n.)
-Level of staff turnover(n.)=The percentage of employees that leave a business over a specific period of time and must be replaced.
Rate of productivity growth(n.)
Productivity(n.) too whilst your at it
-Rate of productivity growth(n.)=is the change in the total output produced from a given level of inputs over time, expressed as a percentage figure.
-Productivity(n.)=(in Business) the ratio of outputs compared to inputs required.
Rate of staff absenteeism(n.)
-rate of staff absenteeism(n.)=The average number of days employees are not present when scheduled to be at work, for a specific period of time.
Level of wastage(n.)
-Level of wastage(n.)=The amount of inputs and outputs that are discarded during the production process.
Number of workplace accidents(n.)
-Number of workplace accidents(n.)=The amount of injuries and unsafe incidents that occur at a work location over a specific period of time.
Number of website hits(n.)
-Number of website hits(n.)=The amount of customer visits that a business’s online platform receives during a specific period of time.
Percentage of market share indicates=
-financial performance
-can be used to compare competitors
-(quality)Therefore, the proportion of Star Cars’ sales compared to its competitors would decrease, resulting in a decrease in its percentage of market share.
Differences between number of sales and net profit figures
One key difference between these two performance indicators is that net profit figures are expressed as a dollar value, whereas the number of sales is expressed as a whole numerical value.3
Number of sales is presents the number of purchases for a good or services a business has achieved, whereas the profit figures relates to the total amount of profit the business has made from its sales
Just because a business has a high number of sales does not mean that it is achieving the objective of making a profit, but if a business has high net profit figures, it is always implying that the business is receiving a profit.
Differences and similarities between kpi’s
(TRY TO KNOW THESE PLEASE FELIX)
Rate of productivity growth indicates=
Productivity(n.) too whilst your at it
-indicate level of efficiency of business(operations system)
-financial performance
-level of resource management
Rate of staff absenteeism indicates=
-Working conditions
-morale and motivation
-do/don’t have strong relationships with management.
-showcases the real corporate culture of the business
Results in=
-store performance to decline
Number of customer complaints indicates=
-increase/decrease in customer satisfaction(derived from quality of service or good)
-quality of goods or service
-can indicate the morale of employees as their motivation effects how well the business provides the good and service.
Level of staff turnover indicates=
-working conditions(e.g. dissatisfaction with workplace safety)
-morale and motivation
-do/don’t have strong relationships with management.
-bad real corporate culture
Number of workplace accidents indicates=
-working conditions
-employees are untrained
Number of website hits indicates=
-Level of customer engagement
Results in=
Improving performance
-can relate to financial performance
-relates to the quality of a business’s online services
Level of wastage indicates=
-impact the environment
-reflect greatly/poorly on the business’s sustainability
-reflect greatly/poorly on the business’s corporate social responsibility practices
-efficient use of resources during operations
-(e.g. May be too many employees scheduled to work each shift resulting in a waste of time and labour resources.)
