CHAPTER 3- non financial performance assessment

Question 1

what are the two theories to judging overall performance of a business

Answer 1

Kaplan and Nortons balanced scorecard

Elkingtons triple bottom line

Question 2

what are the four sections of the Scorecard?

Answer 2

Financial perspective
Internal perspective
Learning and growth perspective
Customer Perspective

Question 3

what do the the four areas of the Scorecard allow the business to do

Answer 3

assess the vision and strategy of the business

Question 4

what does Elkingtons triple bottom line measure business performance on?

Answer 4

Planet, People and Profit

Question 5

what is the profit of the business?

Answer 5

the financial or economic value created by the business

Question 6

what does the people aspect mean?

Answer 6

the social values of the business and the way it treats its employees and the local community

Question 7

what does the planet aspect mean?

Answer 7

the companies environmental values and impact on the environment

Question 8

what is the are in the middle of the venn diagram?

Answer 8

the area of sustainability- ideal balance between social, environmental and financial performance

Question 9

what is the advantage of Elkingtons triple bottom line?

Answer 9

good at assessing overall performance, it takes into account that businesses may have other objectives than just increasing profit

Question 10

what is the disadvantage of Elkingtons triple bottom line?

Answer 10

hard to measure the businesses impact on planet and people

Question 11

what are performance metrics?

Answer 11

Measure a businesses activities and performance. need to be suited to all stakeholders rather than just the managers and shareholders

Question 12

what are the core competences of a business?

Answer 12

the unique abilities of a business that enable it to achieve a competitive advantage

Question 13

what is short termism?

Answer 13

a tendency for businesses to prioritise current performance rather than the long term sustainability of the business

Question 14

what is elkingtons triple bottom line theory

Answer 14

assesses business performance via three different factors: profit, people and planet

Question 15

name a business which has become more sustainable by using elkingtons triple bottom line

Answer 15

Bt

Question 16

what was bt ranked in the world for sustainability in 2015?

Answer 16

15th

Question 17

why has bt invested in its sustainability/corporate social responsibilty?

Answer 17

it believes that there is a correlation between customer satisfaction and csr

Question 18

what are some of the things that bt has done to improve the ‘planet’ factor of the triple bottom line (2013-2014)

Answer 18

• cut waste to landfill site was targeted at 30% but actually cut it by 57%
• 1% of pre tax profit was invested in sustainable activities

Question 19

what are some of the things that bt has done to improve the ‘people’ factor of the triple bottom line (2013-2014)

Answer 19

• higer percentage of the uk have access to high speed internet
• relations with suppliers improved
• customer satisfaction rose by 1.5%