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Hi,
Answer given read through also don’t quite understand.Gromit , can you explain in a simple way:
There is an indirect measure of the customer value being offered by the group through gross profit which , when compared to the industry average, gives a partial measure of value but without data on the price /quality mix compared to competitors,it is difficult to be conclusive about this.
You are not asked to evaluate performance, you are asked to evaluate the performance report ie how it’s set out and the information it contains.
The point from the answer you query is a criticism of the report (which is what the examiner wants) because without fuller information the report is inconclusive – so not very useful.
Industry averages will average every food and drink retailer (presumably) form up market to cheap and cheerful. Even within Cantor we have two different sectors being compared to the same average, so it is difficult to make much of a judgement on performance.
Thanks Gromit,
What is price/quality mix? How does it link to performance measurement and management?Price and quality are usually linked. So you might be up market selling goods at a high price and high quality or low market with low quality and prices.
Where you really win is if you can sell low quality for high prices (I won’t name any suspect companies in case of legal consequences!)
It links to performance measurement and management by having set objectives for quality and, for example GP%. You then monitor these qualities and compare to budgets.
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