Quality considerations should be a priority for all companies, but some are more committed in ensuring their business operates and delivers quality in their products and services. Most businesses understand the consequences involved if their products or services are not delivering at the very least the expected quality to its customers, the organizations reputation and permanency takes a huge risk. As stated by GBScorporate.com, "Good quality management can enhance your organization's brand and reputation, protect it against risks, increase its efficiency, boost its profits and reduce waste, and position it to keep on growing" (2015). Providing quality is a key attribute for businesses to maintain a competitive advantage and guaranteeing customers stay loyal. Quality has many definitions depending on the perspective and environment, and sometimes its subjective but primarily in business, Quality is providing a set of requirements or characteristics to a service or product that adds value and essentially satisfies or exceeds customer's needs (Parnell, 2021). As Diaz points out, "In the end, quality is an outcome, a characteristic of a good or service provided to a customer, and the hallmark of an organization which has satisfied all of its stakeholders. Customer requirements are the core ideal behind all quality definitions (2014). References Diaz, E. (2014). What is your definition of quality? https://www.gbnews.ch/what-is-your-definition-of- quality/#:~:text=Quality%20is%20the%20degree%20to, with%20a%20set%20of%20requirements. Gbscorpotae.com. (2015). Why quality matters more than ever in business. https://www.gbscorporate.com/blog/why-quality-matters-more-than-ever-in- business#:~:text=Good%20quality%20management%20can%20enhance, making%20staff%20and%20customers%20happier. Parnell, John A. (2021). Strategic Management: Theory and Practice 6th Edition. Academic Media Solutions. https://www.academicmediasolutions.com/parnell-strategic-management-6e Given recent accounting scandals, how important is financial ratio analysis in assessing firm performance and developing a firm's financial strategy? What might be better measures of firm performance? Conducting a financial ratio analysis helps compare the firm's performance to other competitors and industry averages (Parnell, 2021, p. 208-209). It allows investors and companies to discover financial leverage and health. Financial ratios include liquidity and activity ratios, such as the current ratio, asset turnover, and debt-to-equity ratio. These ratios can be very insightful in industry-specific analysis. However, financial ratios can be manipulated and may not always reflect the true financial position of a company. Numerous high-profile accounting scandals, such as those involving Enron, Freddie Mac, and AIG, have occurred, where companies have engaged in accounting fraud by manipulating financial records in order to meet expectations or avoid penalties (Adkins, 2021). Companies distort financial statements by recording revenue prematurely, adding fictitious income, concealing liabilities, and shifting revenue periods or expenses. Relying on financial indicators tells a small story of the company's health and does not reflect functional strategies in marketing, human resource, IT, and other segments. Strategic decisions should be based on several factors, not solely on financial ratio analysis. Some methods of measuring firm performance include implementing total quality management (TQM) practices like Six Sigma, assessing innovation through product/service R&D, or acquiring top talent through effective human resource (HR) management (Parnell, 2021, p. 197-218). These performance indicators effectively measure a company's satisfaction rate and ability for future growth. References Adkins, T. (2021, December 12). Financial Statement Manipulation. Investopedia. Retrieved March 14, 2023, from https://www.investopedia.com/articles/fundamental- analysis/financial-statement-manipulation.asp Parnell, J. (2021). Strategic Management: Theory and Practice, Sixth Edition (Paperback-4C) (6th ed.) [Paperback]. Academic Media Solutions.