Analysing Nonfinancial Performance

Question 1

7 ways a business can analyse non financial performance?

Answer 1

Market share
Sales targets
Customer satisfaction
Quality
Productivity
Employee attitude surveys
Environmental impact

Question 2

What is market share?

Answer 2

Proportion of total sales a business has in market.

Question 3

What is market share?

Answer 3

Proportion of total sales a business has in market.

Question 4

How might a business improve market share?

Answer 4

Invest in advertising
Invest in new product development

Question 5

What 3 things might a business do to increase market share?

Answer 5

Brand loyalty
Competitive advantage
Profitability (due to economies of scale)

Question 6

What are customer attitude surveys?

Answer 6

Customer satisfaction measures the degree to which customer expectations are met/ exceeded.
Consider level of repeat purchases, amount of customer complaints, % of products returned and questionnaires.

Question 7

What is environmental record?

Answer 7

When businesses are becoming more aware of their impact on the environment and try to minimise this impact.

Question 8

Ways a business may measure environmental impact?

Answer 8

Recycling or using recycled materials.
Ensuring suppliers in developing countries get a good deal and pay workers well.

Question 9

What are employee attitude surveys?

Answer 9

Used to find abt views of workers in regard to their roles in business and overall business performance.

Question 10

What do employee attitude surveys allow a business to do?

Answer 10

Identify issues like satisfaction
Show how motivation could improve
Judge reaction to proposed change
Assess effectiveness of policies

Question 11

What can businesses do with employee attitude surveys?

Answer 11

Make improvements to do with recruitment and selection processes, retention schemes, communication systems, employee rewards.