Question

Comment on the below non-financial performance indicator of the Next PLC

1) the management of human resources

2) product and service quality

3) brand awareness and company profile.

Answer 1

1) The management of human resources is very important as it adds value to the firm if the company is able to retain most of the talent pool as those resources will be more efficient in their work leading to better efficiency and meeting deadlines easily. So it cannot be quantified into a number but if a company has better human resource mangement, thant firm will be better valued than the other firms whose management is not that good.

2) In todays environment not only the product quality matters but the service quality offered after the sale of the product also matters( for example in auto industry). So a company providing better quality od both product and after sales services will attract more customers and grow its revenues as well its profits.

3) Brand awareness is one of the most important qualitative feature if not the most important one.But brand value will only be built if you provide better quality product at competitive prices which is only possible if the company is able to attract better talent which in turn is the result of better human resource management.So this point is indirectly related to above two points mentioned.