Methods for evaluating the performance of divisions, Strategic Management

Assignment Help:

Q. Methods for evaluating the performance of divisions?

Profit based methods for evaluating the performance of divisions

Operating profit (net profit) margin 

=           (Profit before interest and tax (PBIT)/ Turnover)x 100% 

Gross profit (sales) margin 

   =            (Turnover less cost of sales (gross profit)/ Turnover)   x 100%                

Generally the gross profit or sales margin can also be referred to as the contribution to sales (C/S) ratio e.g. gross profit (sales less variable cost) ÷ sales.                

Mark up

        =          (Turnover less cost of sales (gross profit) / Cost of sales) x 100%          

Controllable profit

The controllability principle indicated that a manager should not be assessed on costs which are not within their own control.


Related Discussions:- Methods for evaluating the performance of divisions

Sales Strategy for next 3 Years, Document printing company create 20 page s...

Document printing company create 20 page sales strategy for next 3 years to address Digital change and less future paper prints

Prepare a brief on decision making, Question 1 "Use anger correctly and...

Question 1 "Use anger correctly and improvements will happen!" To what extent this statement is true? Question 2 Company "Great Success" wishes to train its staffs o

Knowledge audit, Commence the knowledge audit by identifying the knowledge ...

Commence the knowledge audit by identifying the knowledge gaps and blockages in the organisation, as follows: a)  Consider each of the ten checklist issues listed, and assess fr

Planning for sustainability, A university has a small dorm with four rooms,...

A university has a small dorm with four rooms, in which three sophomores, A, E, and J, and a freshman, C, are residing. Not being equipped with gas/electricity meters for individua

Strategy is currently developed in vrc company, VRC is a family owned busin...

VRC is a family owned business which has been manufacturing racing cycles for over a century. Over the years, the company has been relatively successful, although its growth has te

Strategies and actions for objectives, Strategies and actions for objective...

Strategies and actions for objectives The list of strategies and actions for business objectives are as follows: The company will open the new fitness centre in Perth which

Strategic managerial communications, The objective of the term project is t...

The objective of the term project is to demonstrate your understanding and ability to apply the body of knowledge covered in this course. The goal will be on identifying communicat

Evaluating the performance of divisions, Q. Evaluating the performance of d...

Q. Evaluating the performance of divisions? The controllability principle is concerned with assessing performance based upon measures that can be controlled only by a manager a

Costco''s case, what makes costco''s a distnghished and well reputed retai...

what makes costco''s a distnghished and well reputed retail brand?

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd