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Week 3 Understanding performance, b302_blk_01_wk_03_f003.eps, Capture,…
Week 3 Understanding performance
1 Why is performance important?
2 Inputs, outputs and outcomes
effectiveness
mesuring
Efficiency
2.1 Measuring performance in public organisations(and private sector)
public sector
private sector
3 What is competitive advantage?
definition
3.1 Value creation and value capture
fronm costomer point of view
for economic point of view
value creation calculation
Customer surplus + producer surplus = value created
producer surplus
Customer surplus
3.2 Maximising shareholders’ value MSV
the concept
4 Short-term performance measures
profitability ratios
4.1 Return on equity
calculation
net profit /equity *100=%
Interpretation
4.2 the return on capital employed (ROCE)
calculation
operating profit/capital emplyed*100=%
interpertation
4.3 Return on sales
calculation
operating profit /sales*100=%
Interpretation
4.4 Asset utilisation ratio
calculation
sales/capital employed*100=%
interpertation
ratios comparison
ROS& AUR
comune calculation
5 Long-term performance measures
Profit growth and other indicators
how mesured
Market value
share value*number of share outstanding
interpertation
using methode
