You have been hired to assess the overall health and performance of a major grocery store chain. What management tools will you use to make a thorough assessment about the health and performance of this company? What are the most important managerial and financial accounting skills needed for your assessment?
Management tools for Grocery store chain
Here are some categories of critical performance outcomes:
1. Customer Satisfaction and Quality - Ratings and performance standards for measuring and reporting how well you meet customer requirements.
2. Efficiency and Effectiveness - Many services must be delivered in an efficient and effective manner. For example, timeliness is often a good indicator of efficiency. If you do the "right things," this should get reflected in the form of effectiveness.
3. Resources and Utilization: The ability to maximize the use of fixed assets and use Agency resources is a good indicator of performance. Cost and budget performances are common examples.
4. Productivity and Improvements: If you can accomplish better results through new ways of doing things, then this is a form of innovation and in turn is a very solid indicator of performance.
(Govindrajan, Management Control system)
We will also use balanced scorecard as a tool to assess the performance of the organization. The Balanced Scorecard is an approach to performance measurement that combines traditional financial measures with non-financial measures. This approach provides managers with richer and more relevant information about the activities they are managing, increasing the likelihood of organizational objectives being achieved.
According to the one performance measurement index Balance scorecard the following perspectives are important:
The Balanced Scorecard tends to focus more on critical performance indicators and missing out what can be considered less important indicators (Kippenberger 1996):
? Financial perspective - measures reflecting financial performance, for example number of debtors, cash flow or return on investment.
? Customer perspective - measures having a direct impact on customers, for example time taken to process a customer complaint, results of customer surveys, number of ...
Detailed breakdown of management tools to be used in evaluating a grocery store chain.