When Establishing Criteria to Measure the Success of a Customer-Oriented

question 111

Multiple Choice

When establishing criteria to measure the success of a customer-oriented business, managers should

• A) limit their attention to financial measures such as profit and return on investment since these are the only objective and quantifiable measures available.
• B) focus most of their attention on measures of employee satisfaction, since without good employees the firm will not be competitive.
• C) focus primarily on financial measures, but pay some attention to nonfinancial concerns.
• D) recognize that, while financial measures are important and should be considered, the purpose of the firm is to satisfy both internal and external customers.

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Definitions:

Seasonal Variation

Periodic fluctuations in data or events that occur regularly based on the season or time of year.

Systematic Patterns

Regular and predictable behaviors or formations that follow a determined order within a data set or observed phenomena.

Moving Average

A statistical method to analyze data points by creating a series of averages of different subsets of the full data set.

Yearly Observations

Refers to data points or measurements that are collected once every year.