Profits and sustainability | Business & Finance homework help
When measuring a company’s performance, there are five key metrics that should be taken into consideration. The first is customer satisfaction, which measures how well customers feel the company is performing in terms of quality and assistance. Customer satisfaction can be measured through surveys or focus groups and this data can then be used to improve customer experience and loyalty.
The second metric is market share, which is an important indicator of how successful a company’s products or services are relative to competitors in an industry. It can also provide insight into how well the company is doing compared to other businesses in the same space.
Thirdly, return on investment (ROI) should be monitored as it tracks whether investments made are bringing back sufficient returns for the business. A high ROI indicates that capital has been put towards appropriate projects while low ROI could suggest inefficient use of resources or unsuccessful initiatives.
Fourthly, employee engagement levels should be tracked as engaged employees work better and produce higher quality work than disengaged ones who may not care about results they achieve due to lack of motivation or enthusiasm.
Finally, financial health such as cash flow management and cost control should be monitored as this will provide insight into how well a business manages its finances over time. Financial health indicators can help with decision making regarding investments or expansion plans for the future.