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Key Performance Indicator (KPI) in Business Essay

   

Added on  2019-12-03

5 Pages1456 Words436 Views
KeepPerformanceIndicator
Key Performance Indicator (KPI) in Business Essay_1
ESSAYKeep performance indicator (KPI) is a parameter used by organizations to measure theiradvancement towards organizational goals. Therefore, it help an enterprise in attaining strategicand operational goals. It further help company in determining their own performance. With thehelp of keep performance indicator company can identify hurdles in achieving business targetand take corrective steps on time (Krause and Arora, 2010). However, it is also important fororganizations using KPI to monitor them. Furthermore, there are different implication of KPIs invarious organization based on the priorities of business enterprise and their performance criteria.The KPI serve as a guide to the stakeholders and give a easily understandable overview oforganization working and progress towards overall business goals. Tesco and Morrison are twogiant retailers of UK that use keep performance indicators to keep a track of their ownperformance.Tesco is one of the top most retailer of UK and leader of grocery market. It provide food,clothing and other household products to its customers through its chain of supermarkets,superstores and hypermarkets (Ogunlana, 2010). Tesco use keep performance indicators toensure its performance is directed towards organizational goals and company fulfill theexpectation of its customers in a better way. The KPI of company are focused majorly oncustomers which are key assets for Tesco. The KPI of company is calculated on the basis of love by customers for the brand wherethe management makes an analysis on various factors. Thereafter, it includes analysis on howmany times customer repeat its purchase from Tesco; which was 70% last year which indicatesthat company enjoys brand loyalty from its customers. Further, it includes the flow of newcustomers within company; which is 29.1 % last year and it reflects that company is able toincrease its customer base by attracting more customers for its brand (Franceschini, Galetto andMaisano, 2007). Thereafter, it involves the analysis of the easy accessibility for differentproducts from different channels. The last year 59.7 % customers did their shopping acrosschannels which means company is providing multi channel offer that enhance customerconvenience. Furthermore, the management determines how many customer purchase otherbrands of Tesco; 64.3% customers purchase the family brands of company which means the trustof customers for the brand is increasing. Therefore, on the basis of overall overview of above2
Key Performance Indicator (KPI) in Business Essay_2

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