PM- Past Papers Questions and Answers

Why businesses calculate market size and market share variances- (4 marks)
Market size and market share variances
The market size and market share variances are a breakdown of the sales
volume variance. The sales volume variance shows the effect on profit of the
actual sales level being different from the budgeted sales level. However,
without considering how the market itself has changed, it is difficult to draw
conclusions about performance from the sales volume variance. Therefore, the
sales volume variance is broken down into its two components. By doing this, it
is possible to assess the extent to which changes in profit are as a result of:
(i) A change in the size of the market as a whole, which is beyond the control of
the sales manager; and
(ii) A change in the share of the market which the company holds, which is
deemed to be within the control of the sales manager.
Consequently, the variances become far more meaningful for performance
management as businesses can identify external and internal factors which can
influence the results and what was controllable and uncontrollable.

Benefits of an organization using the balanced scorecard approach to measure

performance instead of using solely financial measures- (4 marks)
The benefits to an organization of using the balanced scorecard to assess
performance instead of relying solely on financial measures are as follows:
Not all organizations have profit or financial return as the main objective. In an
altruistic not-for-profit charity, the objectives are based on delivering a service
which can be measured in benefit to people who are unable to pay for the
service. Therefore, it is necessary to have measures which are not purely
financial to reflect the different emphasis of the mission and supporting
objectives.
Financial performance indicators are ‘lagging’ indicators. This means that the
events and decisions which caused these indicators occurred long ago. The
balanced scorecard includes ‘leading’ indicators. For example, the learning and
growth perspective may encourage spending on training or techniques which
will depress profits or increase costs in the short term, but will have much
greater benefits in the future.
The balanced scorecard helps to align key performance measures with strategy
at all levels. This means that all employees will be able to link their individual
goals to those of the organization as a whole. The benefit of this is that it
ensures that what gets measured is important to the organization.
Financial measures used in isolation are relatively easy to manipulate in the
short term. For example, a high return on investment figure may be considered
an indicator of good performance whereas it may have been caused by a
manager delaying the purchase of a necessary asset. The balanced scorecard
provided a range of indicators which makes this type of manipulation more
difficult to conceal.

Problems which not-for-profit organizations face as a result of having multiple

objectives-
The primary objective of commercial organizations is to maximize the wealth
they generate for their owners (shareholders). In contrast, the objectives of
NFPO’s are often non-financial and reflect the interests which the various
stakeholders have in an organization. These stakeholders often have varying
interests in the organization, meaning that the organization will also have a
number of different objectives.
These conflicts may make it difficult to set clear objectives on which all
stakeholders agree. Consequently, the organization’s management will face a
dilemma when trying to decide which objectives are most important and
therefore prioritized in the course of strategic planning and decision-making.
This can be a particular problem when different objectives make different
demands on resources or require different courses of action.
Another problem is that these organizations often do not generate revenue but
simply have a fixed budget for spending which they have to keep to and are
often subject to strong external influences which will influence the setting of
objectives e.g., political factors.
Difficulties in assessing performance of not-for-profit organizations due to the
qualitative nature of their objectives-
1. Difficulties of measurement
2. Subjectivity
Four perspectives of the balanced scorecard-
1. Financial perspective – this perspective is concerned with how a company
looks to its shareholders. How can it create value for them?
2. Customer perspective – this considers how the organization appears to
customers. The organization should ask itself: ‘to achieve our vision, how
should we appear to our customers?’ The customer perspective should
identify the customer and market segments in which the business will
compete. There is a strong link between the customer perspective and the
revenue objectives in the financial perspective. If customer objectives are
achieved, revenue objectives should be too.
3. Internal perspective – this requires the organization to ask itself: ‘what
must we excel at to achieve our financial and customer objectives?’ It
must identify the internal business processes which are critical to the
implementation of the organization’s strategy. These will include the
innovation process, the operations process, and the post-sales process.
4. Learning and growth perspective – this requires the organization to ask
itself whether it can continue to improve and create value. The
organization must continue to invest in its infrastructure – i.e., people,
systems, and organizational procedures – in order to improve the
capabilities which will help the other three perspectives to be achieved.
Issues of encouraging divisional managers to take decisions in the interests of
the company as a whole, where transfer pricing is used-
Divisional managers’ performance is assessed using a metric as decided by the
company. This may simply be the profit for the period, or, depending on the
type of responsibility center being used, a metric such as residual income or
return on capital employed. Whatever the metric being used, the division’s
profit figure is going to affect it and divisional managers are therefore going to
be keen to maximize their individual profits. By focusing on individual decisions,
divisional managers are often not aware of the impact of their decisions on the
company as a whole. This would particularly be the case where a decision which
is in the best interests of the company actually makes an individual division’s
performance look worse.
The transfer pricing system in place needs to take into account the behavioral
impact of the prices being charged. Sometimes, this can mean that a ‘dual
transfer pricing system’ needs to be introduced in order to ensure that
divisional managers act in the interests of the company as a whole.
Problems involved in using ROI to measure the managers' performance-
The main disadvantage of using ROI is that the percentage increases as assets
get older. This is because the net book value of the assets decreases as a result
of higher accumulated depreciation, hence capital employed falls. This, in turn,
can lead managers to hold onto ageing assets rather than replace them,
especially where their bonuses are linked to ROI. It may be that Division P’s
manager would not have made the same decision which Head Office made to
invest in the more advanced technology for this reason.
Another disadvantage is that ROI is based on accounting profits, which are
subjective, rather than cash flows. It is therefore open to manipulation.
Additionally, it does not take into account the cost of capital. It merely looks at
profits relative to capital employed without taking into account the cost of the
capital which has been invested. It is therefore not consistent with maximizing
returns to investors.
How the standards and rewards blocks support the dimensions block in
Fitzgerald and Moon’s building block model-
The standards block sets the target for the performance indicators chosen for
each of the dimensions. The targets must meet three criteria – they must be
achievable, fair and encourage employees to take ownership. If the targets set
do not meet these criteria, then the performance of the organization could
suffer.
The rewards block ensures that employees are motivated to achieve the
standards. It also considers the properties of good reward schemes which are
that they should be clear, motivating and based on controllable factors.
If standards and rewards are set appropriately, the staff will be engaged and
motivated and it is then more likely that the goals, i.e., dimensions, of the
organization will be achieved.
BRIEFLY describe the sales mix contribution variance and the sales quantity
contribution variance-
The sales mix contribution variance measures the effect on profit of changing
the mix of actual sales from the standard mix.
The sales quantity contribution variance measures the effect on profit of selling
a different total quantity from the budgeted total quantity.
Problems which may be encountered when a company tries to implement the
new budgeting system-
1. The first problem may be trying to obtain the right information needed to
update the budget.
2. Staff will need training.
3. If wrong assumptions are made, the new budget may be unreliable.
Financial and other factors that should be considered when making a further
processing decision-
The following factors should be considered when making a further processing
decision-
1. Incremental revenue
2. Incremental costs. A decision to further process can involve more
materials and labor. Care must be taken to only include those costs that
change as a result of the decision and therefore sunk costs should be
ignored. Sunk costs would include, for example, fixed overheads that
would already be incurred by the business before the further process
decision was taken.
3. Impact on sales volumes and customer loyalty.
4. Impact on reputation
Factors to be considered before making an outsourcing decision-
1. Cost. Outsourcing often involves a reduction in the costs of a business.
Cost savings can be made if the outsourcer has a lower cost base than.
Labor savings are common when outsourcing takes place.
2. Quality
3. Confidentiality
4. Reliability of supply
5. Primary function
 6. Access to expertise
Problems trying to capture and use big data-
1. Volume
2. Variety
3. Velocity
Three types of MIS and how they could be used in the organization-
Transaction Processing Collect, store, modify and retrieve the
System (TPS) transactions of an organization. A transaction is
an event that generates or modifies data that is
eventually stored on an information system.
There are two types of TPS:
Batch Transaction Processing (BTP) collects
transaction data as a group and processes it
later, after a time delay, as batches of identical
data.
Real Time Transaction Processing (RTTP) is the
immediate processing of data. It involves using
a terminal or workstation to enter data and
display results and provides instant
confirmation.
Executive Information Give executives a straightforward means of
Systems (EIS) access to key internal and external data. They
provide summary-level data, captured from the
organization’s main systems, data manipulation
facilities and user-friendly presentation of data.
Enterprise Resource Integrate the key processes in an organization
Planning Systems (ERP) so that a single system can serve the
information needs of all functional areas. They
primarily support business operations like
Finance, HR, Marketing and Accounting and
work in real time, meaning that exact status of
everything is always available to all users. They
can be deployed at all sites around the world;
they can work in multiple languages and
currencies.
Advantages and disadvantages of Full cost-plus pricing strategy-
Advantages-
It is quick, cheap and relatively easy to apply. Pricing can therefore be delegated
to more junior management if necessary.
It ensures that all costs are covered and that the organization makes a profit,
provided budget figures used in the pricing calculation are reasonably accurate.
The costs of collecting market information on demand and competitor activity
are avoided.
Disadvantages-
Its focus is internal- internal costs and internal targets. It therefore takes no
account of the market conditions faced by the entity. By adopting a fixed mark-
up, it does not allow the company to react to competitor’s pricing decisions.
Absorption bases used when calculating the full cost are decided arbitrarily.
Depending on the absorption basis used in the calculation of total cost, the
strategy can produce different selling prices.
Market penetration pricing-
Market penetration pricing is a policy of low prices when a product is first
launched in order to achieve high sales volumes and hence gain a significant
market share. It may discourage competitors from entering the market.
Market skimming strategy-
This pricing strategy involves charging high prices when a product is first
launched and spending heavily on advertising and promotion to obtain sales so
as to exploit any price insensitivity in the market. It is particularly suited for
products with inelastic demand.
Price elasticity of demand and implications of elasticity-
Price elasticity of demand is a measure of the extent of change in market
demand for a good in response to a change in its price. It is measured as:
Percentage change in demand/Percentage change in price
Since the demand goes up when the price falls, and goes down when the price
rises, the elasticity has a negative value, but it is usual to ignore the minus sign.
The value of demand elasticity may be anything from zero to infinity.
Elastic and inelastic demand-
Demand is referred to as inelastic if the absolute value is less than 1. Where
demand is inelastic, the quantity demanded falls by a smaller percentage than
the percentage increase in price.
Where demand is elastic, demand falls by a larger percentage than the
percentage rise in price. The absolute value is greater than 1.
Pricing decisions-
In circumstances of inelastic demand, prices should be increased because
revenues will increase, and total costs will reduce.
In circumstances of elastic demand, increases in prices will bring decreases in
revenue and decreases in price will bring increases in revenue. Management
therefore has to decide whether the increase/decrease in costs will be less
than/greater than the increase/decrease in revenue.
In situations of very elastic demand, overpricing can lead to a massive drop in
quantity sold and hence a massive drop in profits, whereas underpricing can
lead to costly stock outs and, again, a significant drop in profits. Elasticity must
therefore be reduced by creating a customer preference which is unrelated to
price (through advertising and promotional activities).
In situations of very inelastic demand, customers are not sensitive to price.
Quality, service, product mix and location are therefore more important to a
firm’s pricing strategy.
Decision rule-
Maximin decision rule The maximin decision rule involves
choosing the outcome that offers the
least unattractive worst outcome, in
this instance choosing the outcome
which maximizes the minimum profit.
Maximax decision rule The Maximax criterion looks at the
best possible results. It means
‘maximize the maximum profit’. In
this case we need to maximize the
maximum contribution.
Minimax regret rule The Minimax regret decision rule
involves choosing the outcome that
minimizes the maximum regret form
making the wrong decision.

Reasons for uncertainty arising in the budgeting process-

Uncertainty arises largely because of changes in the external environment over
which a company will sometimes have little control. Reasons include:
Customers may decide to buy more or less goods or services than originally
forecast.
Competitors may strengthen or emerge and take some business away from a
company. On the other hand, a competitor’s position may weaken leading to
increased business for a particular company.
Technological advances may take place which leads to a company’s products
or services to become outdated and therefore less desirable.
The workforce may not perform as well as expected, perhaps because of time
off due to illness or maybe simply because of lack of motivation.
Materials may increase in price because of global changes in commodity
prices.
Inflation can cause the price of all inputs to increase or decrease.
If a company imports or exports goods or services, changes in exchange rates
can cause changes to prices.
Machines may fail to meet production schedules because of breakdown.
Social/political unrest could affect productivity, e.g., the workforce goes on
strike.

Explain what would happen to the breakeven point if the products were sold in
the order of the most profitable products first-
If the more profitable products are sold first, this means that the company will
cover its fixed costs more quickly. Consequently, the breakeven point will be
reached earlier, i.e., fewer sales will need to be made in order to break even. So,
the breakeven point will be lower.
Explain the limitations of CVP analysis-
The limitations of CVP analysis are the unrealistic assumptions required.
 1. Uncertainty in the estimates of fixed costs and unit variable costs is often
ignored.
2. Production and sales are assumed to be the same, so that the
consequences of any increase in inventory levels or of ‘de-stocking’ are
ignored.
3. It is assumed that sales prices will be constant at all levels of activity. This
may not be true, especially at higher volumes of output, where the price
may have to be reduced to win the extra sales.
4. It is assumed that fixes costs are the same in total and variable costs are
the same per unit at all levels of output. This assumption is a great
simplification. The assumption is only correct within a normal or relevant
range of output. It is generally assumed that both the budgeted output
and the breakeven point lie within this relevant range.
Use of expected values-
Where probabilities are assigned to different outcomes we can evaluate the
world of a decision as the expected value, or weighted average, of these
outcomes. The expected value is calculated as the probability of the outcome
multiplied by the outcome. The principle is that when there are a number of
alternative decisions, each with a range of possible outcomes, the optimum
decision will be the one which gives the highest expected value. However, the
expected value may never actually occur.
Expected values are more valuable as a guide to decision making where they
refer to outcomes which will occur many times over. Examples would include
the probability that so many customers per day will buy a loaf of bread, the
probability that a customer services assistant will receive so many phone calls
per hour, and so on.
Use of sensitivity analysis-
Sensitivity analysis can be used in any situation so long as the relationships
between the key variables can be established. Typically, this involves changing
the value of a variable and seeing how the results are affected.
It can help to concentrate management attention on the most important factors
and can be particularly useful when launching a new product.
Participative budget and its advantages and disadvantages of involving senior
staff in the budget-setting process, rather than the managing director simply
imposing budgets on them-
Participative/bottom-up budgeting is 'A budgeting system in which all budget
holders are given the opportunity to participate in setting their own budgets'.
Advantages-
1. Accuracy of the budget can be improved as they are based on information
from staff who are most familiar with their department.
2. Staff are more likely to be motivated to achieve targets that are set by
themselves as they have a sense of ownership and commitment.
3. Morale amongst staff is likely to improve as they feel that their
experiences and values are included.
4. Knowledge from a spread of several levels of management is pooled.
5. Coordination is improved due to the number of departments involved in
the setting process.
Disadvantages-
1. The whole budgeting process is more time consuming and therefore
costly.
2. The budgeting process may have to be started earlier than a non-
participative budget would need to start because of the length of time it
takes to complete the process.
Behavioral problems that may arise from using standard costs-
Standard costing is principally used to value inventories, to prepare budgets and
to act as a control device. The focus in using a standard cost system should not
be to attribute blame, but to influence behavior through positive support and
appropriate motivation.
The perception of a standard costing system can affect its success or failure. A
negative perception is often the consequence of unreasonable standards, lack
of transparency in setting standards, poor communication or uneven reward
systems. Such situations can make a good standard cost system a failure.
Ways to reduce negative perceptions/motivation-
Organizations should set understandable and achievable standards, otherwise it
neither motivates nor rewards employees. Complex financial measures and
reports mean nothing to most employees.
Employees should be involved in setting standards and developing performance
measures. This should result in realistic targets and increase employee
motivation.
Standards should be well defined and communicated to all employees so that
operational efficiency can be achieved. Management should ensure that any
performance-related scheme does not reward behavior that goes against the
best interests of the organization.
Finally, performance pay plans should be reviewed and updated on a regular
basis to meet the changing needs of employees and business as a whole.
Advantages and disadvantages of incremental budgeting-
Incremental budgeting bases the budget on the results for the current period
plus an amount for estimated growth or inflation in the next period. It is
therefore suitable for organizations that operate in a stable environment where
historical figures are a reliable guide to the future.
Advantages-
Incremental budgeting is very quick compared to other methods of budgeting.
The information required to prepare a budget under this approach is readily
available.
For the above reasons, incremental budgeting is very easy to perform. This
makes it possible for an employee with little accounting training to prepare a
budget.
Disadvantages-
Incremental budgeting is a reasonable procedure if current operations are as
effective, efficient and economical as they can be. In general, however, it is an
inefficient form of budgeting as it encourages slack and wasteful spending to
creep into the budgets. Past inefficiencies are perpetuated because cost levels
are rarely subject to close scrutiny.
There is also a risk that errors from one year are carried to the next, since the
previous year’s figures are not questioned.
Three main steps involved in preparing a zero-based budget-
The three main steps involved in preparing a zero-based budget are as follows-
1. Activities are identified by managers. Managers are then forced to
consider different ways of performing the activities. These activities are
then described in decision packages, which:
1) Analyses the cost of the activity
2) States its purpose
3) Identifies alternative methods of achieving the same purpose
4) Establishes performance measures for the activity
5) Assesses the consequence of not performing the activity at all or of
performing it at different levels
As regards to this last point, the decision package must be prepared at the
base level, representing the minimum level of service or support needed
to achieve the organization’s objectives. Furter incremental packages may
then be prepared to reflect a higher level of service or support.
2. Management will then rank all the packages in the order of decreasing
benefits to the organization. This will help management decide what to
spend and where to spend it. This ranking of the decision packages
happens at numerous levels of the organization.
3. The resources are then allocated, based on order of priority up to the
spending level.
Principle behind zero-based budgeting-
The principle behind zero-based budgeting is that the budget for each cost
center should be prepared from scratch or zero. Every item of expenditure must
be justified, to be included in the budget for the forthcoming period.
Controllability principle-
The controllability principle is that managers of responsibility centers should
only be held accountable for costs over which they have some influence. From a
motivation point of view, this is important because it can be very demoralizing
for managers who feel that their performance is being judged on the basis of
something over which they have no influence. It is also important from a control
point of view in that control reports should ensure that information on costs is
reported to the manager who is able to take action to control them.
The controllability principle can be implemented either by removing the
uncontrollable items from the areas that managers are accountable for, or
producing reports which calculate and distinguish between controllable and
uncontrollable items.
For example, the controllability principle means that operational managers
should only be held responsible for excess idle time, above that which is
expected, based on realistic forecasts.
Behavioral problems if company uses solely ROI, based on net profit rather than
controllable profit, to assess divisional performance and reward staff-
1. Staff may feel demotivated.
2. They may feel that management has deliberately altered how
performance is measured to avoid paying staff bonuses.
3. Staff may deliberately work slowly and refuse to work overtime to show
their opposition to the system.
Discuss whether or not including fixed costs in a transfer price is a sensible
policy-
Fixed costs can be accounted for in a number of ways. As such, including the
fixed cost within the transfer price could lead to manipulation of overhead
treatment. For example- employing absorption costing or activity-based costing.
Including all fixed costs in the transfer price will benefit the manufacturer, who
can ensure that all costs incurred during the manufacturing process are
covered. Assuming the fixed overhead absorption calculations are accurate, the
manufacturing division should be guaranteed a profit.
The main problem with this pricing strategy is fixed costs are effectively treated
as variable costs from the perspective of the stores, as they are included within
the variable buy-in price. This could lead to poor decision-making from a group
perspective.
Discuss the problems that may arise in the financial management and control of
a not-for-profit organization-
Financial management and control in a not-for-profit organization needs to
recognize that such organizations often have multiple objectives that can be
difficult to define and are usually non-financial.
Performance of such organizations is judged in terms of inputs and outputs and
hence the value for money criteria of economy, efficiency and effectiveness.
Economy means that inputs should be obtained at the lowest cost. Efficiency
involves getting as much as possible for what goes in: i.e., using the resources as
efficiently as possible to provide the services offered. Effectiveness means
ensuring the outputs, i.e., the services provided, have the desired impacts and
achieve the objectives.
Performance measures to determine whether objectives have been achieved
can be difficult to formulate for an organization.
Measures such as the number of free meals served, number of advice sessions
given and number of bed-nights used, show that quantitative measures can be
used to demonstrate that the NFPO is meeting a growing need.
Financial management and control in this organization will primarily be
concerned with preparing budgets and controlling costs.
Preparing budgets
Budgets rely on forecasting and accurate forecasts can be difficult to prepare for
a NFPO. The level of activity is difficult to predict. A high degree of flexibility is
required to meet changing demand, so provision needs to be built into budgets
for this.
Controlling costs
This is a key area of financial management due to the need for efficiency and
economy. Inputs such as food, drink, bedding etc. can be sourced as cheaply as
possible and expenses such as electricity and telephone usage can be kept to an
absolute minimum through careful use.
Briefly explain steps that could be taken to encourage managers to take a long-
term view in decision-making-
Steps that could be taken to encourage managers to take a long-term view, so
that the "ideal' decisions are taken, include the following-
1. Making short-term targets realistic. If budget targets are unrealistically
tough, a manager will be forced to make trade-offs between the short and
long term.
 2. Providing sufficient management information to allow managers to see
what trade-offs they are making. Managers must be kept aware of long-
term aims as well as shorter-term (budget) targets.
3. Evaluating managers' performance in terms of contribution to long-term
as well as short-term objectives.
4. Link managers' rewards to share price. This may encourage goal
congruence.
5. Set quality-based targets as well as financial targets. Multiple targets can
be used.
Advantages of allowing divisions to operate autonomously-
1. Divisionalization can improve the quality of decisions made because
divisional managers (those taking the decisions) know local conditions and
are able to make more informed judgements, Moreover, with the personal
incentive to improve the division's performance, they ought to take
decisions in the division's best interests.
2. Decisions should be taken more quickly because information does not
have to pass along the chain of command to and from top management.
Decisions can be made on the spot by those who are familiar with the
product lines and production processes and who are able to react to
changes in local conditions quickly and efficiently.
3. The authority to act to improve performance should motivate divisional
managers.
4. Divisional organization frees top management from detailed involvement
in day-to-day operations and allows them to devote more time to strategic
planning.
5. Divisions provide valuable training grounds for future members of top
management by giving them experience of managerial skills in a less
complex environment than that faced by top management.
6. In a large business organization, the central head office will not have the
management resources or skills to direct operations closely enough itself.
Some authority must be delegated to local operational managers.
Describe the balanced scorecard approach to performance measurement-
The balanced scorecard approach to performance measurement emphasizes
the need to provide management with a set of information which covers all
relevant areas of performance in an objective and unbiased fashion.
The information provided may be both financial and non-financial and cover
areas such as profitability, customer satisfaction, internal efficiency and
innovation.
The balanced scorecard focuses on four different perspectives, as follows.
Customer perspective
The customer perspective considers how new and existing customers view the
organization. This perspective should identify targets that matter to customers,
such as cost, quality, delivery, inspection and so on. The customer perspective is
linked to revenue/profit objectives in the financial perspective. If customer
objectives are achieved, it is likely that revenue/profit objectives will also be
achieved.
Internal perspective
The internal perspective makes an organization consider what processes it must
excel at in order to achieve financial and customer objectives. The perspective
aims to improve internal processes and decision-making.
Innovation and learning perspective
The innovation and learning perspective require the organization to consider
how it can continue to improve and create value. Organizations must seek to
acquire new skills and develop new products in order to maintain a competitive
position in their respective market (s) and provide a basis from which the other
perspectives of the balanced scorecard can be accomplished.
Financial perspective
The financial perspective considers whether the organization meets the
expectations of its shareholders and how it creates value for them. This
perspective focuses on traditional measures such as growth, profitability and
cost reduction.
Advantages and disadvantages of using Residual Income (RI) to measure
divisional performance-
Advantages
The use of RI should encourage managers to make new investments, if the
investment adds to the RI figure. A new investment can add to RI but reduce ROl
and in such a situation measuring performance with RI would not result in the
dysfunctional behavior. Instead, RI will lead to decisions which are in the best
interests of the company as a whole being made.
Since an imputed interest charge is deducted from profits when measuring the
performance of the division, managers are made more aware of the cost of
assets under their control. This is a benefit as it can discourage wasteful
spending.
Alternative costs of capital can be applied to divisions and investments to
account for different levels of risk. This can allow more informed decision
making.
Disadvantages
RI does not facilitate comparisons between divisions since the RI is driven by the
size of divisions and their investments.
RI is also based on accounting measures of profit and capital employed which
may be subject to manipulation so as, for example, to obtain a bonus payment.
In this way it suffers from the same problems as ROI.
Building block model-
Dimensions Standards Rewards
Determinants- Ownership Clarity
Quality Equity Motivation
Resource utilisation Achievable Controllability
Flexibility
Utilisation
Resultants-
Financial performance
Competitiveness