Projection of the firm’s performance

The overall performance of a company; how well it is expected to do in the future; the challenges and successes it is likely to face. In the end, the aforementioned elements and more are crucial in determining a firm’s current position as well as its strengths and weaknesses. They also have an impact on a steady trajectory (Zu, 2009).

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The financial performance is calculated as (Operating Profit/Sales Revenue)*100 and reflects the creation of profits. In numbers, this equals (1,596,770/8,260,400)*100=19.33

What is referred to as market performance is the creation of demand for the company. It is calculated by taking the average market share in the primary and secondary categories and multiplying it by 100. A score of 0.68 is a weakness as it is below 0.80. 0.8 is the threshold score for market efficiency. Investment into the firm’s future is also used to evaluate a company’s total performance. It is necessary for a company’s future survival. A score of 3.32 is strength for the firm as it is a score that is above 3.0 (Zu, 2009).

Conclusion

From the preceding, the firm has both weakness and strengths, and a computation of the above scores enable us to determine the substantial portion and the markets. The flaws outweigh the company’s power and hence the need for an improvement in the scores of the above areas highlighted above. These improvements are vital if the firm is to compete in future. For example for productive wealth creation, the marketing division needs to earn more profit than the investments made by the corporate headquarter.

Reference

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Zu, L. (2009). Corporate social responsibility, corporate restructuring and firm’s performance: Empirical evidence from Chinese enterprises. Berlin: Springer.

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