Topic: Strategic Performance Measurement Systems

14.12 Explain the advantages non-financial performance measures offer for managing resources and creating value, compare with financial measures.

E14.23 For each of the following businesses, select two performance measures that could be used to support the competitive strategy of superior product of service quality. Make sure that your measures are specific to each other type of business.

1.Accounting firm

2.Company that manufacture electric garden equipment

3.Firm that design advertising campaign for sporting events

4.Company that sells children's toys

5.Taxi company

E14.30 Zippy Cola is a multinational soft drink manufacturer. The Australian Plant, located at Doveton, in Victoria, is currently attempting to improve its performance through benchmarking activities. The best performing pant in the Zippy Cola group is located in Seattle, in the USA. The general manager of the Doveton plant has approved a benchmarking visit to the Seattle plant by a team of employees. The benchmarking team consists of the manufacturing manager, two manufacturing team leaders, a member of a third manufacturing team and the plant's human resources manager. The functions that the benchmarking team has identified for the study include employment contracts, the operation of self-managed teams in manufacturing and short cycle times at the Seattle plant.

1.What type of benchmarking is the Doveton plant planning to undertake?

2.Explain the advantages and limitations of this form of benchmarking.

3.What are the advantages of forming a multidisciplinary benchmarking team similar to the one used by the Doveton plant?