Re: [ vuZs.net ] Re: MGT603-answer requested with ref

In strategy formulation phase, what can be the problem when only financial ratios are used to measure organizational performance? 

 

► They need to be compared with competitors to have any real earning.

► They are only understandable by accountants 

► There are many different measures available 

► The measures are usually inconsistent

First option is incomplete. I have completed with green highlights.

Reference

Financial measures need to be compared with competitors to have any value in a strategic sense.

Regards

Umeed

www.vuzs.net

On Sun, Jul 3, 2011 at 4:22 PM, Mehreen Humayun <mc090400472@vu.edu.pk> wrote:

Thank u Naaz, this is same in handouts, page 151.

in this mcq they are asking about the problem associated with using only financial ratios.

so according to me it should be,

► There are many different measures available 

see this:

Some key financial ratios that are particularly useful as criteria for strategy evaluation are as

follows:

1. Return on investment

2. Return on equity

3. Profit margin

4. Market share

5. Debt to equity

6. Earnings per share

7. Sales growth

8. Asset growth

but option no  1 is the strategy used for evaluation.

plz comment on it.......:)

________________

Mehreen Humayun

4th Semester, MBA(Banking)

Distance Learning Student

www.vuzs.net

Quality in Everything We Do

vuZs Banking Group: http://groups.google.com/group/vuzs_banking?hl=en

On Sun, Jul 3, 2011 at 1:27 PM, Mehreen Humayun <mc090400472@vu.edu.pk> wrote:

In strategy formulation phase, what can be the problem when only financial ratios are used to measure organizational performance? 

 

► They need to be compared with competitors' 

► They are only understandable by accountants 

► There are many different measures available 

► The measures are usually inconsistent 

________________

Mehreen Humayun

4th Semester, MBA(Banking)

Distance Learning Student

www.vuzs.net

Quality in Everything We Do

vuZs Banking Group: http://groups.google.com/group/vuzs_banking?hl=en

--
--
Please visit www.vuzs.net For Current & Old Papers, Quizzes, Assignments and study material.
--
You received this message because you are subscribed to the Google
Groups "vuZs" group.
--
To post a new message on this group, send email to vuZs@googlegroups.com
--
Message Posting Rules: http://vuzs.net/faq/4795-vuzs-google-groups-basic-rules-for-posting-messages.html
--
To unsubscribe from this group, send email to vuZs+unsubscribe@googlegroups.com
--
To join this group Send blank email from your virtual university email address to
vuZs+subscribe@googlegroups.com
or visit
http://groups.google.com/group/vuZs/subscribe
---
For more information Contact vuZs Manager at info@vuzs.net

--
--
Please visit www.vuzs.net For Current & Old Papers, Quizzes, Assignments and study material.
--
You received this message because you are subscribed to the Google
Groups "vuZs" group.
--
To post a new message on this group, send email to vuZs@googlegroups.com
--
Message Posting Rules: http://vuzs.net/faq/4795-vuzs-google-groups-basic-rules-for-posting-messages.html
--
To unsubscribe from this group, send email to vuZs+unsubscribe@googlegroups.com
--
To join this group Send blank email from your virtual university email address to
vuZs+subscribe@googlegroups.com
or visit
http://groups.google.com/group/vuZs/subscribe
---
For more information Contact vuZs Manager at info@vuzs.net