LLA advertising agency, December 2012

P5 places a lot of emphasis on non-financial performance measures and this question does not specify that it wants financial performance measures only. Here is an extract from the examiner’so report:

The second part required justified recommendations of alternative metrics. Most candidates realised that nonfinancial indicators would be useful and those that made suggestions appropriate to LLA scored well. Those that offered lists of metrics that could apply to any company scored significantly less well. There were many answers that provided lengthy (possibly rote-learned) proposals of ROCE, EVATM and RI although these were of limited use in this scenario, as they did not address the issues in the different offices nor did they address the fact that LLA would be likely to have a large intangible asset base. The better solutions made sure that their comments on these alternatives were consistent with their criticism of the existing measure.