Analysing Performance Flashcards
What are 3 limitations of financial performance indicators? (FPIs)
Historical data
Limited Focus
Short-term
How is historical data a limitation of FPI?
Can’t predict the future
How is limited focus a limitation of FPI?
A barrier for risk taking
How is short-term a limitation of FPI?
May hide a long-term issue that affects financial performance
What is long-termism?
Where a business is focused on sustained growth through long term relationships with stakeholders
What is short-termism?
When a business prioritises short-term performance rather than long-term performance
What are core competencies?
The things that are unique to a business which can create strategic advantage
What is Elkington’s Triple Bottom Line about?
People, Planet and Profit
What does planet mean in Elkington’s TBL?
How positive it is environmentally
What does people mean in Elkington’s TBL?
Are they looking after staff?
What does planet mean in Elkington’s TBL?
Are they making profit fairly?
What are 3 aims of employment legislation?
To protect individuals from unfair treatment
To advance equality of opportunity
To make unlawful discrimination based on protected characteristics
How does the CMA ensure that consumers get a good deal when buying goods and services, and businesses operate within the law?
3 reasons
They investigate mergers
Take action against businesses that take part in anti-competitive behaviour
Investigate entire markets
What does analysing non-financial data allow a business to consider?
Other internal factors
