Identify and critically analyse principles and trends in Performance Measurement and Control.
Learning Outcome 1:Identify and critically analyse principles and trends in Performance Measurement and Control.
Learning Outcome 2:Determine the different budgeting techniques and critically evaluate their use in short term decision making.
Learning Outcome 3:Analyse the current approach to performance measurement and control in a selected global organisation and critically appraise suggestions for improvement of current practices.
Learning Outcome 4:Critically appraise the application of performance criteria in Not for profit and Public sector organisations
Your Task Dog`s Habitat is a dog rehoming shelter where stray dogs can go in order to find a new family. This organisation is a not-for-profit business which has been successfully operating for five years. In the last three years, Dog`s Habitat has seen an increase in the costs of food, toys, and other running costs. The shelter has therefore had to try to reduce the costs associated with its operations and has done this by reducing the number of paid employees that work within each shelter. This has meant that there has been a reduction in the number of hours that the shelter can be open each day. In addition to reducing the number of paid employees, the shelter has started to charge an admission fee for individuals who wish to visit the shelter. By charging an admission fee, the shelter is able to cover some of the costs associated with the shelter, such as food and toys for the dogs. The shelter also charges an adoption fee for any pet who is adopted and sells food and other accessories for dogs.
The financial results of the business from 2016 to 2018 are shown below. Inflation within the country in which Dog`s Habitat operates is around 2% per year.
Dog`s Habitat Financial Results 2016, 2017, and 2018
Required:
Question 1
You have been appointed as a performance management consultant for Dog`s Habitat. You have been asked to write a report for the management of Dog`s Habitat on the performance of the business. Within your report you should include:
a. An assessment of the financial performance of Dog`s Habitat using the information given above and how the current financial performance may impact upon the business within the short term. (LO2, LO3).