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q financial perspective for not-for-profit organisationsthe primary objective is profit for most organisations but for an npo they are non-profit
q process to implement balanced scorecard1 a clear vision of introduction of a bsc communicated and demonstration which senior management are
q limitations of using balanced scorecard- historical performance analysis is no guide to the future- manipulation or massaging of performance
benefits of using balanced scorecard bsc- bsc encourages a long-term view of improving performance through time- bsc considers both non-financial as
four perspectives of the balanced scorecard customer perspective eg what should we do right for our customers and what do they value internal
a new technique to strategic management was developed in early 1990s by drs robert kaplan harvard business school and david norton kaplan and norton
identify suitable performance measures for an insurance company to detect false claims and measure the speed of how they are processing
q multidimensional performance measurementmultidimensional performance indicators recognise that the constant drive to increase profitability can
q explain activity based managementactivity based management abm is about satisfying customers whilst making fewer demands on internal resources
q managing value based management strategic selection of projects that create high shareholder wealth resource allocation and funding should have a
q explain about value based managementvalue based management vbm is an approach which focuses on strategies and actions to create more value for
q behaviour of divisional senior executiveseva can affect the behaviour of divisional senior executives in the following ways1 they would
division y has annual operating profit of pound40 million after charging pound6 million for the development cost of a new product which has been
differences of eva and ri eva uses the replacement not historical accounting cost of assets profit calculated under both methods are different eg
limitations of economic value added eva - not well understood by users of accounts- divisions of different sizes cannot be relatively
merits of economic value added eva- cash not accounting based measure therefore less distorted for performance measurement- consistent or
q explain economic value addedeconomic value added was developed by stern stewart amp co and is a registered trademark eva is an estimate of economic
q define market value addedmva is an external measure of shareholder wealth the market value added from one period to another it is measured by the
free cash flows can be arrived at by using the following calculationoperating profit before interest and tax pbit
q free cash-flow valuationsearnings create dividends for shareholders in theory the value of a company is the value of the companys future earnings
alfred rappaports definition of shareholder wealth value shareholder value corporate business value - debt the corporate value represents the
the following details are available for company z middot share price at the beginning of the year pound387 share price at the end of the year
q evaluate total shareholder returntotal shareholder return tsrtsr dividend per share growth in share price market share price at the start of the
q evaluate the dividend yieldcreating shareholder value dividend yielddividend yield dividend per share market share price x
q problems of pursuing only profit objectives- conflict with other stakeholder goals for example customers will want a better service and not want to