... assess how effectively the firm has allocated and arranged resources. Emmanuel, Otley and Merchant point out, there are various other measures that account for a broader series of success criteria, e.g. stock and asset turnover statistics, gearing ratios and figures showing the major sources and application of funds. By analysing these, management and also shareholders (owners of the company) are therefore better informed about how each department within the organisation is performing. Asda for example has extended its brand name into the non-food sector and now sell products such as DVD players, televisions, clothes and mobile phones. Asda's management are able to assess how well they are doing in the non-food sector by examining this particular division's marketing strategy and analyse it's achieved volume of sales, it's current share of the market and consumer responses. If central management did not have such performance indicators, how could they monitor the progress ...

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