non financial performance

Question 1

what is non financial performance

Answer 1

non financial perfromance is usrd to measure how a business has perfromed against aims and objectives ,
- market share
- sales targets
- productiivity
- environmental impact
-quality
- customer satisfaction
- employee attitude

Question 2

sales targets

Answer 2

sales targets may be based on sales forecasting techniques, ensure money is spent in correct direction based on what sales forecast suggested would be e.g. summer higher demand for summer clothes ensure money is spent on investment and innovation in summer products to be able to achieve sales targets

to achieve sales targets other techniques may be used such as loss leader products to increase customer sales in other products making a loss elsewherte
sales targetting by targetting exsiiting customers e.g. more expensive packages or other complimentary products e.g. sky and virgin

may loose money in the short term but may lead to increased sales in the long term

Question 3

market share

Answer 3

proportion of total sales a business has in a market
increasing market share is a common long term aim of a business

might invest in adevertising a new product development to increase market share

expensive reduce profit shoert term long term achieve aim

Question 4

productviity

Answer 4

measure of output against a fixed input

increasing producutivity to gain compeptiitve advantage may be an objective

this mayt be doen by increased money on training and investing in new machinery

Question 5

environmental impact

Answer 5

businesses are becoming more aware of the impact on the envoronemnt and trying to minimise impact

e.g. recycling. recycled materials
ensuring pay workers abroad and domestically good wag e
long term commitment and part of brand image

for some businesses environmental vision aims and objectives more important that max prodits and increasing market share

Question 6

customer satisfaction

Answer 6

measures the degree to which customer expectations are met or exceeded
in twems of price and product, quality of service

measures via
- level of repeat purchases
-amount of customer complaints
- level of retuened products
- feeback by questionaires and focus group s

lomg term improvong customer satisfaction and loyalty which will resuly in increased sales and profit

Question 7

employee attitiude surveys

Answer 7

used to find out abiout the views of workers in regard to their roles and overall business performance
allows business too

• identidy ussues and problems that exist e.g. low employee satisfaction
• indicate how motivation can be improved
• judge reaction to propsed change
• asses effectivness of policies

-additional info :
laboour turnover, early leavers improbe recruitment and slelection process, employee retention schemes, communication systems, emplyee reward and recognition polices

imporant if labour resulted in loss of sales and increased costs