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Under Financial Performance the answer has a bullet point:
Annual compound growth rate – what does this mean? I haven’t seen this covered in F5?
Under Competitiveness:
The restaurant is becoming increasingly price competitive – I’m assuming that they mean the price charged to the customer but what evidence is there of this?
For Quality of Service the answer states:
It is difficult to provide a definitive comment regarding the quality of service over the period, especially as the number of customers nearly doubled over the period – does this imply that because they are attending to more customers that the level of service could have been compromised?
Even additional calculations, such as those involving key service quality data per 100 customers would not provide the basis for an overall conclusive comment – why is this so?
If you could please advise me on these points so that I can gain a better understanding of this topic. I hope that this will also help other students.
Thanks
The word compound is rather irrelevant – it is just the normal annual growth rate which is mentioned in performance measurement. (If you want to know more about what the word compounding actually means, then look back at the Paper F2 lectures)
We don’t know about quality of service – thats why we can’t give a precise comment. As the answer says, more customers could be because the quality is good, but as you say, more customers could mean that they are not able to give as good a service. We don’t have enough information.
Whatever extra calculations we do on the information provided, would not give a precise answer to the above.(Incidentally, although the questions at the end of the notes are OK, I will probably remove them in the future because it is far more important to be practicing recent questions in your revision kit.)
Ok, thanks for explaining. I have literally just finished doing all of the 14 Questions.
I have also finished reading all of the articles from the ACCA website today. I may have a few questions on them. Some things that are in them may not be specific to F5 as I think the topic is covered under a few different modules so I will just check with you if this is the case.
However, I will do this in a different thread tomorrow.
Thanks again, and enjoy the rest of your evening
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