Introducing the traditional measures/methods, such as ROI and RI and how they can be used in measuring divisional performance. o Good answer here should include examples. o Then, you should discuss the problems of using these measures alone (e.g., they just focus on the financial measures and focus on the short term). o The role of transfer pricing may be discussed here too. o Finally, the student is expected to introduce more developed measures such as the balanced scorecard very briefly.

Critically analyse how divisionalised organisations measure the performance of individual divisions.