session 5 Flashcards
Evaluation and control processes
- determine what to measure
- establish predetermined standards
- measure performance
- does performance match standards?
-yes => STOP
-no => step 3
Types of controls
-output
-input
-behavior
Traditional Financial measures
-Return on Investment
-Earnings per share
-Return on Equity
-Operating cash flow
-free cash flow
Shareholder value
-Economic value-added
-Market value-added
Business strength
-star
-high attractiveness and high strength
-question mark
-high attractiveness and low strength
-cash cow
-low attractiveness and high strength
-dog
-low and low
Balance scorecard
Combines financial measures that tell results of actions already taken with operational measures on customer satisfaction, internal processes, and corporation’s innovation and improvement activities
4 areas
-Financial
-Customer
-Internal business perspective
-Innovation and learning
Benchmarking
process of measuring products, services and practices against the
toughest competitors