Using Non-Financial Data to Measure Strengths and Weaknesses

Question 1

What forms on non-financial data can we use to measure strengths and weaknesses of a business?

Answer 1

• Operations Data
• Human Resources Data
• Marketing Data
• Environmental Data

Question 2

What does operations data consist of?

Answer 2

An area of management concerned with planning and controlling the production process within a business.

• Productivity of labour and capital used in production
• Measures of quality
• Capacity utilisation

Question 3

Productivity definition

Answer 3

Productivity measures the quantity of inputs required to produce a unit of output.

Question 4

How could quality be measured?

Answer 4

• Measuring customer loyalty through the number of repeat customers
• Measuring customer satisfaction rates through questionnaires or surveys
• Measuring specific elements of operational performance, such as the number of faulty products

Question 5

What does human resources data consist of?

Answer 5

• Labour productivity
• Absenteeism rates
• Health and safety data
• Labour cost per unit
• Costs associated with
  employees, such as average wages and recruitment costs
• Labour turnover and retention.

Question 6

What does marketing data consist of?

Answer 6

Marketing data is available to stakeholders seeking to assess a business’s performance in relation to that of its competitors in a particular market.

• Historic and forecast data on specific markets, company shares, size and growth rates, segmentation.
• Product life cycles
• Information on issues affecting customer behaviour
• Info on sales figures and brand recognition
• Expenditure on advertising.

Question 7

What does environmental data consist of?

Answer 7

Management of energy, natural resources or waste will affect the current performance of many businesses.

• Emissions to air
• Emissions to water
• Emissions to land
• Use of scarce and non-renewable resources.

Question 8

What is research and development definition?

Answer 8

R&D is the generation and application of scientific knowledge to create a new product or develop a new production process which can increase the business’s productive efficiency.

Question 9

Profit quality definition

Answer 9

Profit quality measures the extent to which a particular type of profit is sustainable.

Question 10

Measuring short term vs long term performance, what matters?

Answer 10

• Profit quality
• Customer satisfaction, (loyalty and market share)
• Brand image and reputation
• Sustainability

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