Page 170 - BA1 Integrated Workbook STUDENT 2018
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Subject E3: Strategic Management
CHAPTER 8 – THE PERFORMANCE MEASUREMENT MIX
8.1 C, E
A is most likely to be measures relating to the customer perspective, while D is
likely to be within the financial perspective of the balanced scorecard. Note that
B may relate to either the customer or financial perspectives.
8.2 B
Competitor benchmarking is inappropriate given there being no other public
broadcasters and an unwillingness on the part of private broadcasters to enter
into a benchmarking arrangement with FF. Internal seems inappropriate, as FF
lacks the skills for effective debt collection – looking inside the business will not
help this!
Process benchmarking may be more appropriate. FF could find another, non-
competing organisation which has a strong debt collection system and try to
benchmark itself against them.
Note that mutual benchmarking is not one of Seber’s identified types of
benchmarking.
8.3 D
By definition.
8.4 A, D, E
By definition. B and C are both incorrect as EVA’s focus on cash flows provides
a direct link to shareholder wealth. In addition, the EVA provides a single figure
assessment of whether or not the division has performed well in the year.
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