Graviton Dec'13

Qns A: Evaluate the current performance measurement system using the performance pyramid (PP)

I explain and gave a detailed pointer for each components using PP.

Corporate Vision
– mention on Graviton’s mission statements and it critical success factors. However, the company is maximizing its revenue but the profits margins are stagnant over the years. As a result, shareholders are experiencing that the dividend growth is weak despite the high sales.

Market Satisfaction
– insufficient existing measures thus need to include market share (mention on how market share contributes to the market satisfaction), market growth, industry averages for benchmarking and comparison

Financial Measures
– explained ROCE is not an good indicator to measure shareholders’ wealth. Hence should include other financial measure such as EVA, share price, dividends cover and COGS. COGS to determine whether there is efficency in cost savings with regards to the stock on hand.

Customer Satisafaction
– mention on the importance of measuring customer satisfaction thus implementing customer surveys would enable Graviton to improve existing process to meet customer demands. mention on the existing issues that Graviton had faced with regards to the flaw in durability of the clothes.

Flexibility
– mention that there is insufficient measures to measure flexibility despite there is a measurement for design awards won and average time to market (days). Hence introduce a few indicators such as time taken to manufacture products to market its products and time taken to design products to manufacture the products.

– Mention on the importance of the supply chains in Graviton as one of its CSFs is to meet fashion trends.

Productivity
– mention on how staff training would improve its process and productivity which thus enable to meet the fast changing fashion trend.

As for quality, delivery, process and cost factors, i did briefly explain on each factors.

Hence, i would like to know whether does this set of answer fulfill the question requirement?