Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Stylish Ltd produced two types of coffee tables, namely Deluxe and Casual tables. It has recently expanded into the country, Aland. The competitive environment of

Stylish Ltd produced two types of coffee tables, namely Deluxe and Casual tables. It has recently expanded into the country, Aland.

The competitive environment of Stylish Ltd is changing rapidly. The coffee table market used to be dominated by two large manufacturers which make a simple and cheap coffee tables. There are two other major international manufacturers apart from Stylish. One of these has already opened a factory in Aland and is producing tables similar to the Casual type to compete directly with the existing local producers.

The board of Stylish has set the following critical success factors (CSFs) for Stylish Aland's operations:

1. To obtain a dominant market presence

2. To maximize profits within acceptable risk

3. To maintain the brand image of Stylish for above-average quality products

The board is considering using the following key performance indicators (KPIs) for each product: total profit, average sales price per unit, contribution per unit, market share, the margin of safety, return on capital employed (ROCE) and total quality costs.

KPIs should be mainly catered for_________planningcontrol purpose. However, the KPIs considered by the board are mainly __________indicators, as they are likely to be useful for controlling ________.

In order to achieve CSF of dominant market presence, the relevant KPI is ____________. To achieve CSF of maximizing profits within acceptable risk, the relevant KPI is ____________. The other KPI that could address CSF of maximizing profits within acceptable risk is __________.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Horngrens Accounting The Financial Chapters

Authors: Tracie L. Miller Nobles, Brenda L. Mattison, Ella Mae Matsumura

10th Edition

0133117561, 978-0133117561

More Books

Students also viewed these Accounting questions

Question

Identify at least six characteristics of valuable information.

Answered: 1 week ago

Question

1. To understand how to set goals in a communication process

Answered: 1 week ago