Performance Evaluation Flashcards
What is the benefit of performance evaluation?
improves goal congruence (incentive alignment)
What is the difference between ROI and RI?
ROI: a percentage calculated for a product, division, or company
RI: shows return that company is making
What are the 4 perspectives of a balanced scorecard?
customer, financial, internal business, innovation/learning
What are Porter’s 5 Forces? (strategy)
threat of new entry, buyer power, competitive rivalries, threat of substitution, supplier power
What are the 2 generic strategies?
product/service differential and cost leadership
What is Product/Service Differential?
offering products or services that customers believe are superior to those provided by competitors
example: apple, coke
What is Cost Leadership?
offering products or services at lower costs than competitors
example: home depot, dollar tree
