Page 152 - BA1 Integrated Workbook STUDENT 2018

Subject E3: Strategic Management

8.3 NN runs a large call centre which deals with customer queries and complaints.
It has recently set itself a number of performance measures in a number of key
areas, including:

 response times to customer calls

 the number of customer queries satisfactorily dealt with in one phone call.

Which of the following dimensions of the Fitzgerald and Moon building
blocks model is NN focusing on?

A Flexibility

B Profit

C Resource utilisation

D Quality issues

8.4 ZAZ is considering the use of EVA as a method of measuring the performance
of its three divisions.

Which of the following statements regarding the use of EVA are correct?
Select ALL that apply.

A It ensures that the focus is on the cash flows of the divisions

B It does not provide a single overall measure of divisional performance

C It does not provide a link between performance measurement and
shareholder wealth creation

D It is unable to deal with non-financial value creation in a division

E Judgement is required in the evaluation and selection of an appropriate
cost of capital

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