Non Financial Measures

Question 1

What are the 6 Non Financial performance indicators ?

Answer 1

Productivity, Market share, Sales target, Environmental impact, Quality, Customer Satisfaction

Question 2

Define Productivity A01

Answer 2

The output produced in relation to the
inputs used for a given time period(Outputs per worker)

Question 3

Result of improving productivity for a business?

Answer 3

The firm can make more profit per unit or can reduce the price to become more competitive

Question 4

5 Example Methods of improving labour productivity

Answer 4

^ Number hours worked, training, investment in equipment + tech, changing the way work is done, motivating employees

Question 5

Define market share + Formula a01

Answer 5

Sales of a firm relative to the market size > Sales of a business/ Total sales in a market x 100%

Question 6

Why is Market share important?

Answer 6

Indicate if a firm is leading - which can influence strategies/tactics for business .Indication of success or failure due to its strategy

Question 7

What would a business do with small MS ?

Answer 7

They may set a target of increasing its share by a certain amount over a fixed period

Question 8

Examples of Environmental policies organisations now have?

Answer 8

Limit the amount of noise pollution they do(noise, air, waste), Restricting wildlife damage, using renewable energy sources

Question 9

What’s an environmental audit?

Answer 9

Assess the environmental impact their activities are having

Question 10

What is customer satisfaction?

Answer 10

Meeting the needs of customers- important due to market orientation.
Business offer good customer satisfaction - more likely customers return/ recommend to others.

Question 11

How can Customer satisfaction be measured?

Answer 11

Questionnaires, repeat purchases, referrals, recording telephone convos

Question 12

How does quality affect the business?

Answer 12

Firms always look to improve quality - poor quality=lack of efficiency,it ^ cost + reduces profit.Alos affects repuattion.

Question 13

Define Sales target A01

Answer 13

Amount of sales taht a firm makes in either money or volume in a specific time period compared with its objectives.

Question 14

Why are targets set?

Answer 14

Set for goals to aim for- included in firms budget- revenue generated from sales indicate how high expenditure budget can be .Can motivate/ demotivate

Question 15

Benefit/Drawbacks Productivity A03

Answer 15

+High productivity -lower unit costs
-Speed of working - reduce quality

Question 16

Benefit/Drawbacks Market share A03

Answer 16

+^indicate the success of business
- Doesn’t show market growing/shrinking

Question 17

Benefit/Drawbacks Sales Target A03

Answer 17

+Whether objectives been met
-Factors outside buisness cause sales target be missed

Question 18

Benefit/Drawback Environment A03

Answer 18

make the firm appear more environmentally friendly - impress current + potential customers
- Long time for environmental policies to take effect- require new suppliers/ gradual reduction in pollution

Question 19

Benefit/Drawback Quality A03

Answer 19

+Rise in quality- lead to increase in demand+ increase in profit
- Measures used not be cost-effective, cost outweighs potential gain

Question 20

Benefit/Drawback Customer Satisfaction A03

Answer 20

+Content customers vital for success
- Difficult to measure-if using Questionnaire those not happy may not respond.