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I am unable to understand one statement. It would be grateful of you if you explain
“Non-financial measures are just as important as for the whole business, but it is with regard to the financial performance that we need to give a little more thought.”You meant to say that Divisional performance can be more precisely mesured with help of Financial Indicitors than Non-financial indicators which are used for entire organisation’s performance.
Is that right?No.
You need to read the rest of the paragraph containing that statement which is explaining that just looking at the divisional profits can be misleading and that the profit needs to be related to the size of the division. I give examples in the lecture as to why this is the case.
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