Large global companies produce and sell a wide variety of products throughout the world. Because of the complexity of their operations, it is difficult for top management to control operations directly. It may therefore be appropriate to divide a company into separate self-contained segments or divisions and to allow divisional managers to operate with a great deal of independence. ‘Head office’ will require a division to submit regular reports of its performance.

Describe and discuss three measures of divisional operating performance that might be included in such reports.

Answer rating: 100% (QA)

Divisional performance measurement involves both quantitative and subjective evaluations of the departments or divisions that make up an organisation ... View the full answer