Cost interactions in evaluating performance of organization


Question 1: Discuss the role of performance measures in helping organization members manage the value chain.

Question 2: Evaluate the issues and problems created by revenue and cost interactions in evaluating the performance of an organization unit.

The usage of accounting reports and performance measures in key decisions about the firm's value chain also applies to major high level areas such as usage of the firm's core competencies, outsourcing production vs. in-house, decentralization vs. centralization, management style and performance measures, and downsizing staff vs. expansion. Value chain management leadership is now a role of the CEO in many organizations.

JMI's CEO wants you to implement performance measures for evaluating the performance of each aspect of the value chain. Based on all you know about JMI and its many products, divisions, and operations, what performance recommendations would you make for each aspect of the value chain? What accounting tools and reports would you use? Use the Library and internet to re-explore value chain management from this view.

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