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Revenue and Operating Margin

The organization is a corporation manufacturing automobiles such as cars, SUV's, etc.

The first measurement control would be revenue of the firm. I would need to evaluate the actual revenue and growth rate with the planned targets. This control will help me in evaluating the efficacy of the strategic plans of the organization in terms of meeting the desired goals. This control can be reviewed with other related controls such as market share of the organization.

The second measurement control would be operating margin. If the company is improving its operating margin, it will reflect that the efforts made by the organization towards improving internal efficiency is working.

The third measurement control is quality. The organization's quality efforts and initiatives can be evaluated by putting quality checks and controls in various processes of the organization. If the measurement controls related to quality (such as reduction in defects, etc.) reflect improvement in quality of processes and output, it shows that the quality related efforts are moving ahead in the right direction and supporting the strategic plans of the organization.

Follow up question:
How would you assess marketing as a starting type of process for your firm? Wouldn't you want to assess consumer needs and wants and their attributes before designing an auto and assessing what its costs may be?

Solution Preview

How would you assess marketing as a starting type of process for your firm? Wouldn't you want to assess consumer needs and wants and their attributes before designing an auto and assessing what its costs may be?

We would definitely assess consumer needs and wants, including each main attribute, before designing an auto and assessing what the costs may be. As part of a ...

Solution Summary

This solution discusses assessing marketing as a starting type of process, consumer needs, and costs that are involved. Includes 1 reference.

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