Reference no: EM1374394

1. Assume you are consulting for a media conglomerate that is perplexed by the parting fates of Blockbuster and Netflix.

As a consultant, you want to highlight the varying fates of the two companies via a strategic audit.

Focusing on (i) customer (ii) product and (ii) market audits, compare and differentiate Netflix and Blockbuster's differing fortunes to date with difference between the companies for each audit and a KPI (measure) to understand customer engagement, product success and market performance.

Explain the reasoning behind each KPI.

2. KPIs (Key Performance Indicators) are commonly used performance analysis, regardless of industry. Here are some KPIs (I have crafted nearly all of them as examples - all indexed as ratios) (all are for one period).

Choose any three KPIS based on your industry/interests. Explain why the existing KPIs offer a partly-complete measure. For each KPI, come up with an extension that might offer a better and/or in-depth measure.

a. HR and Labor Management: HR Total Cost= (Direct labor-related expenses) / (Total revenue)

b. Technology: Technology Systems Performance= (Contribution of a Technology to Realized and Expected Cost Savings / (TCO (Total Costs of Ownership) of that Technology))

c. Healthcare: Patient Satisfaction= (Number of Patient Complaints) / (Number of total patient interactions).

d. Finance: Compliance Index = (Number of filings and transactions in compliance) / (Total filings and transactions)

e. Supply Chains and Operations: Operations Backlog= Change in the number of order backlogs in year 2 and year 1) / Change in the total number of orders in year 2 and year 1)

f. Accounting: New Products Index = (Revenue of products & services released in last 12 months) / (Total company revenue)

g. Marketing: Market Share Index= (Revenue from products and services) / (Total Cost of market campaign for the products and services)

h. Real estate: Time to Close= (Total number of days a property is in the market before sale) / (National average in days for a property to sell)

i. Environment: Cost of Compliance= (Opportunity costs from lost sales) / (Remedial Costs required for Compliance)

j. Engineering: Machine Utilization Efficiency= (Total Machine Setup Costs for Machine i) / (Total Machine Run Costs for Finished Product)

k. Fashion: Merchandise Display Efficiency= ($ sales from a specific brand per period) / (Inventory and shelving costs for the specific brand per period)