Part 1 - Evaluate performance report

Question 1

Phương pháp chung để đánh giá PERFORMANCE REPORT

Answer 1

• B1: Xác định OBJECTIVES and STRATEGIES
• B2: Đánh giá OVERAL:
  + Có KPI liên quan đến OBJECTIVES không?
  + List KPI có đầy đủ không (financial and non-financial, history and future, long and short, benchmark, relative value and obsolute numbers)
• B3: Đi chi tiết từng STRATEGIES, có KPI để giải quyết không
• B4: Presentations, Other issues (liquidity, phân nhóm…)

Question 2

KPI: Measure shareholder value and its growth

Answer 2

• Economic value added (EVA™)

- Total return to shareholders

Question 3

KPI: How the company works with customers

Answer 3

• The number of joint product development projects undertaken

Question 4

KPI: Customer value-for-money

Answer 4

• The gross profit which, when compared to the industry average
• The price/quality mix compared to competitors

Question 5

KPI: Measure of innovation

Answer 5

• The number of new products

- The revenue or profit generated from them

Question 6

Divisions operating in different markets

Answer 6

• The report treats the divisions in the same way AS THE GROUP, using profit and comparison to industry average margins and budgets. This may NOT BE HELPFUL as the divisions are in DIFFERENT markets and so may NOT be easily COMPARABLE => providing the targets set for EACH of the divisions for the major financial indicators.

Question 7

In terms of PRESENTATION

Answer 7

• The data are CLEAR and in a form which would be EASILY RECOGNIZABLE to those used to reading accounts. However, it is common to provide a NARRATIVE COMMENTARY with such a report in order to HIGHLIGHT the key features in the report such as major deviations from target or performance well outside industry norms.

Question 8

KPI: Becoming the largest clothing retailer

Answer 8

• Chiven’s market share,

- With an indication of the market leader

Question 9

Delivering exceptional value to its shareholders

Answer 9

• Growth of these indicators year-on-year which would be more useful to assess performance rather than the absolute amounts
• Market average information

Question 10

Measures of web sales or the impact of technology on the activities of Chiven

Answer 10

• Sales are for the website separately.

Question 11

Streamlined supply chain

Answer 11

• The number of suppliers

- The number of product lines supplied by each supplier