following is not a performance standard:
Competitive position
Profit
Market share
Productivity
Following is not a performance standard:
Competitive position
The following is not a performance standard:
Competitive position: Competitive position is a measure of how well a company is positioned within its industry relative to its competitors, and it is often used as a performance metric. However, it is not considered a performance standard because it is more of a qualitative assessment rather than a specific measurable target.
On the other hand, the remaining three options can be considered performance standards:
Profit: Profit is a measure of a company's financial performance and is typically monitored closely by businesses. It represents the amount of money a company earns after deducting all expenses from its revenue. Profitability is an important performance standard as it indicates how well a company is generating revenue and managing its expenses.
Market share: Market share refers to the portion of the total sales within a specific market that a company controls. It is often used as a performance standard to assess a company's position within the market. The larger a company's market share, the more dominant it is in the industry.
Productivity: Productivity measures the efficiency of a company's operations and how effectively it utilizes its resources to produce goods or services. It is often measured in terms of output per unit of input (e.g., sales per employee). Productivity is an important performance standard as it gauges how well a company is utilizing its resources to generate output and can indicate its competitiveness and efficiency.
To determine which of the following is not a performance standard (competitive position, profit, market share, productivity), we need to understand what each term represents in the context of business performance.
1. Competitive position: This refers to the company's position relative to its competitors in the market. It can include factors such as pricing, product differentiation, market share, and customer loyalty.
2. Profit: Profit is the financial gain a company makes after deducting expenses from revenues. It is an essential performance standard as it indicates the company's financial viability and success.
3. Market share: Market share represents the portion or percentage of a specific market that a company holds. It is an important indicator of a company's competitiveness and can influence its potential for growth and profitability.
4. Productivity: Productivity measures the efficiency and effectiveness of a company's resources in producing goods or delivering services. It often compares outputs to inputs, such as labor, capital, or time. Higher productivity generally leads to improved performance and profitability.
Therefore, the performance standard that is not directly related to business operations and outcomes is competitive position. Competitive position is more of a concept that encompasses various factors, including profit, market share, and productivity. It does not represent a tangible quantifiable measure of performance on its own.