NON - FINANCIAL MEASURES OF PERFORMANCE

Question 1

What is SWOT analysis

Answer 1

A tool used for strategic planning that involves analysing a business’s internal resources and its external environment

Question 2

What factors of the SWOT analysis are included in the internal audit

Answer 2

Strenghts

Weaknesses

Question 3

What factors of the SWOT analysis are included in the external analysis

Answer 3

Opportunities

Threats

Question 4

What is the measurement for survival (and the definition)

Answer 4

Often an objective for a new business/ a business in a crisis

Measurement - The business is still running

Question 5

What is the measurement for growth (and the definition)

Answer 5

Measurement:

• Increase in sales revenue
• Increase in customers
• Increase in asset base (i.e. open a new location)
• Increase in number of employees

How to analyse - Some businesses may target growth rather than profitability

Question 6

What is the formula for profit (and the definition)

Answer 6

Formula = Total inflows - total outflows

How to analyse: Cash flow (liquidity) is often more important than profit

Question 7

What is the formula for social and ethical objectives (and the definition)

Answer 7

CSR reporting is now a legal requirement, and is becomeing a source of competative advantage for many businesses.