Empower Your Accounting Team with Sales Performance Management for Accounting

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hi I'm her fees again and I'm going to take you through to the another very important area of the exam syllabus which keeps coming all the time and that's the performance evaluation now performance evaluation has two areas as far as our syllabus of f5 is concerned one area deals with the corporate performance in which the whole organization results are given in the question and then we have to analyze the details of the company business or organization and we have to assess whether the organization has performed better or organization has performed poorly second dimension or second area of these f5 syllabus in terms of performance evaluation is divisional performance which we are going to cover in a separate session and as per divisional performance we will be given two or three divisions in one questions two or three branches two or three departments you can call them and we will compare these divisions whether division a has a superior performance or B has a superior performance something like that okay so let's get going into the measuring financial performance now as far as the performance is concerned of an organization which we call it corporate performance performance can be evaluated on the basis of two parameters okay one is financial performance of the organization which is mostly we are billing in this session and second aspect of the performance is non-financial okay financial performance is through the monetary values meaning we are looking at the financial effects or we are looking at the financial parameters of the organization financial grounds of the organization meaning we are looking at revenue we are looking at cost we are looking at the expenditures we are looking at the gross profit we are looking at the assets we are looking at the liabilities and profits etc so these are the financials which generally come from the financial statements so if the corporate performance is involving you in terms of financial performance examiner has to give you some extracts from the financial statements maybe some information from the income statement which is very popular and something from the financial position or balance sheet but a number of people believe that financial performance sometime does not do much justice to the organization it is very useful but a number of times financial performance may not have long lasting impacts on the organization a reason being because the financial statements are produced for one year of time we produced income statement for the year balance sheet as on at the end of the year so idea is financial performance has got very short-term approach okay that it only monitors the organization on financial grounds whether this organization has done a good job in this year or organization has done a poor job in this year okay what happens that this year they have done a good job but this good job has very poor impacts in three years time then maybe it's not a long-lasting impact this year goes well but maybe the next two or three years don't go well okay so in order to aid financial performance a number of times we are also given to measure non-financial impacts as well known financial impacts can be about the quality of products okay about resource utilization okay it could be dealing with no Asian aspect etc okay so these are those factors which can which may not be expressed directly in monetary values I mean what is the monetary value of quality now it is the satisfaction we look into the customer records and we see whether the customers are happy customers or customers are not happy customers we look at the number of complaints to see whether the quality is going up or quality is coming down we look at the revenue base if the revenue is increasing chances are quality products are being produced if number number of returns are decreasing probably customers are happy about the products okay we look at the resource utilization have we used the resources effectively efficiently or we were just wearing out our assets we look at the innovation that in the last year has the company generated any new ideas which we will have longtime impacts has the company generated new brands has the concrete set up new branches has the complete used new technology has the complete used new plant and machinery has the company used new research and by looking at this we can determine after five years ten years where we can see this company so generally both financial and non-financial measures are used to measure the corporate performance but again choice of the examiner sometime examiner just gives you financial parameters okay that assess the financial performance of the company sometimes they give you both of them assess the financial as well as non-financial performance of the business okay so from here let's get going in financial performances there are some ratios we have to develop okay because financial results come from the financial statements and by looking at the financial statements we can interpret the financial results by developing some ratios now you've seen in different papers maybe in f2 f3 or if somebody has done paper f7 or if somebody has done paper f9 you will find these similar similar or common type of ratios roaming around everywhere for example profitability ratios which can be return on investment or capital employed which is net profit divided by capital employed profit margin is net profit over sales asset turnover is sales over capital employed and if examiner asks you to do gross profit margin it is gross profit over sales if examiner asks you to do expenditure margin it is simply expenses divided by sales so margins are any ratios which are based upon sales okay right we can calculate gross profit margin or any margin based upon the data provided and all of them we believe greater the better okay any of the margins or asset turnover or return on capital employed if they are increasing we feel company is performing better on the financial grounds liquidity ratios test the company's ability to pay its short-term debts in time so current ratio is current assets divided by current liabilities that whether company has sufficient current assets to pay off its current liabilities and why is it important to have an impact on financial performance simply because if company doesn't have enough sufficient cash resources company may struggle now okay in the financial crisis few years ago if we remember a number of companies were shut down simply because they didn't have enough cash resources companies were not remained liquid and that's why they had to shut down because they couldn't pay off their creditors their clients and customers and so on quick ratio or asset test ratio which is further refinement of the current rate and that simply current assets - inventory divided by current liabilities because the number of times we believe inventory in the financial statements may be misleading because there are different inventory valuation models first in first out last in first out average cost next in first out standard cost so a number of times we we don't know exactly which method is reliable because every method gives us different results number two in a force forced sale or in a forced closure inventory may not fetch the right price which is shown on the balance sheet if inventory is shown at hundred thousand dollars we may not even get half of it in a forced closure when we close down the business or business is going down we may have to get rid of inventory at a very low value so that's why we eliminate inventory from the total current assets and then we find out more refined quick ratio okay so these are some of the ideas we'll see we may have to develop more ratios where I'll explain in a minute problems with the financial measures as I explained before short termism because the financial statements are produced for one financial cycle or one year they can only tell us whether this year was ok or this year was not ok but financial measures may not be our direct indication of the long term objectives or long term goals I mean to say if we have made more money this year doesn't reflect we will make more money next year as well ok because a number of times companies do overtraining and due to over trading revenues go up a number of times the cash the the receivables or current assets increase because of the over trading asset turnover goes up but not necessarily in the long run ok it ignores qualitative data ok because it does not take into account the efforts of our skills or experiences of the employees or staff it doesn't take into account the efficiency levels of different men who are performing okay and it gives us an overall view a rather than internal view of every department also it ignores key performance areas okay for example flexibility quality resource utilization etc and lastly it has purely internal focus it ignores the relationship with the performance and that of our competitors because simply it simply tells us what revenue was generated by my company okay and it does not tell us that we could have generate we could have generated more revenue if we had compared it with our competitors and seeing what technology they had applied and by applying that technology we could have improved the results okay so a number of issues with the financial measures but they are still very successful they are still very popular when we look at the interpretation of the financial statements now here is a technique technique how to develop analysis or how to assess the financial performance of an organization now please remember when examiner will ask you a question which will range from 10 to 15 marks examiner will ask you discuss evaluate or assess the financial performance of the business okay if it is worth 15 marks for example now please do not think that all 15 marks are purely based upon calculations and computations out of 15 marks maximum maximum 5 to 6 marks can be allocated for calculation of ratios and the remaining 9 to 10 marks will be allocated for discussions interpretation of those ratios that based upon this ratio what is the likely financial impact on the business that due to this ratio looks good performance or it looks bad performance and what were the reasons okay so keep in mind 5 or 6 for calculation of ratios and rest of the nine or ten marks for the discussions okay narrative part of the ratios so in order to get those nine or ten marks which are narrative part best piece of advice is develop as many ratios as you possibly can from the data provided okay create analytical view as much as you possibly can from the information provided and even you write down three to four lines against every ratio if you would have plenty of lines of narrative part or discussions and your discursive area will look quite positive and stronger okay now here is the technique to build more and more ratios so that we can gain not only those five six marks calculations but also from the discussions as well one method is called as horizontal or periodic analysis some people actually call it trend analysis as well because it simply compares two periods remember our financial statements are presented to the shareholders for two years one is the current year and second is the last year and we can compare the results of current and last year to see where the trends are going have we performed better than last year or have we performed worse than last year in horizontal analysis some people apply this line by line line by line line analysis works in this way that we compare every line of the financial statement with that of last year meaning we can compare some examples sales of current year with the sales of last year we can compare cost of sales of current year with the sale of a cost of sale of last year we can compare gross profit of this year with the gross of profit of last year expenses of this year expenses of last year net profit of this year net profit last year so whatever lines are given five for ratios can easily be developed through horizontal style comparing this year with that year how do we do it very simple formula all we do is simply current year figures - last year figures divided by last year figures again times by 100 and you will be able to develop a ratio meaning to say is if I am looking at these sales so current year sales figures - last year sales figures divided by last year sales figure that will tell me whether the sales have gone up by a percentage or sales have gone down by a percentage okay and then we can do it with cost of sales gross profit expenses and net profit as well okay secondly please remember when we are discussing the performance okay remember one principle and principle is about the cost or expenditures or expenses a number of times it looks like our cost or expenses has increased cost or expenses have gone up as compared to last year now please remember increase in expenses or increase in cost is not always bad if we have spent more money in this year as compared to last year it may not be bad it will only be bad if we have spent more money on expenses as compared to last year if it is above the increase in sale meaning if sales increased by 5% and expenses increased by 15% then it is bad if sales gone up by 5% as compared to last year but expenses increased only by 2% of 3% then it is not bad so idea is if increase in expense is less than increase in sales it reflects good financial performance and vice versa is the okay please remember wild discussions vertical analysis now this is another attempt to develop some more ratios by doing the vertical analysis you develop your famous popular ratios as you develop in other papers as well for example we can develop a number of margins you just need to remember that margins are any ratios which are based upon sales denominator used is always sales meaning gross profit over sales is gross profit margin net profit over sales is net profit margin cost of sales over sales is cost of sales margin and expense over sales is expense margin okay we can also develop return on capital employed or alternatively cold as return on investment which you see in the formula which is based upon net profit or operating profit of the company divided by capital employed capital employed may also be called as net assets okay so a number of ratios can be developed based upon the data provided so long as you can develop a good five six indicators we can discuss things quite well let's have a look at a question which appeared a few years ago in the exam paper okay Oliver is the owner and manager of Oliver salon which is quality hairdresser that experiences high level of competition the salon traditionally provided a range of hair services to female clients only so in the past they were providing services to female clients including cuts colouring and straightening a year ago at the start of 2009 financial year Oliver decided to expand his operations to include hairdressing needs of male clients so before it was only female clients now they have included male clients as well male hairdressing prices are lower the work simpler mainly haircuts only and so the time taken per male client is much less the prices for the female clients were not increased due to whole of 2008 and 2009 and the mix of services provided for female clients in the two years was the same okay we are given some latest financial results of current year as well as past year which is 2008 sales cost of sales and then gross profit expenses etc etc okay right so these are some kind of informations provided to us is that okay now here if I introduce some more information okay because the requirement aces calculate the average price for hair services per male and female client for the years 2008 and 2009 okay and second requirement is it should be be assess the financial performance of the Salone using the data provided above using the data above right so we were talking about let's have a look at the requirements calculate the average price for hair services per male and female client for each of the years 2008 and 2009 and requirement B is assess the financial performance of celery using the data above okay so first requirement is just like your number crunching assessment whether you can develop some numbers or not how can we calculate average price we are given some information if we look at the information provided we are given number of clients in 2008 and 2009 female clients were 8,000 in 2008 and 6800 in 2009 whereas there were no male clients in 2008 remember at the start of 2009 female sorry male clients were introduced at the start of 2009 male clients were introduced so revenue from male clients will only be generated from 2009 so we were given sales of each period and we are given number of customers so sales divided by number of clients does it not give us average price and this is what we are going to apply here okay so requirement a average price per client first of all let's calculate for the female clients in 2008 and then 2009 okay now in 2008 the female clients were 2000s at least 8,000 and the revenue generated was $200,000 so this $200,000 was purely generated from 8,000 clients so 200,000 sorry I forgot to write down here female it is from female clients $200,000 / 8000 clients or customers that gives us average price so here is 200,000 over 8,000 it works out twenty-five dollars per female client service okay per female client service now because the price of female clients remained the same in 2009 as well that's given to us so we can say in 2009 based upon information provided the price charged to female client remained the same which is 25 dollars per client okay let me take you back into the information it says here the prices for the female clients were not increased during the whole of 2008 and 2009 meaning to say if the price of the female client has been calculated for 2008 the same was charged for 2009 as well now I'm looking at average price per client from the male customers okay now is it okay if we do it in this way that the revenue from 2009 which is two hundred and thirty eight and a half thousand dollars that comes from a mixture of both male and female clients so this comes from a total of male and female clients so two hundred and eighty thirty eight and a half thousand comes from both so total revenue or total sales - female revenue wooden it gave us the revenue from male clients okay so let's work out two hundred and thirty-eight thousand five hundred is the total revenue of 2009 - female revenue which is six thousand eight hundred female clients multiplied by the average price which is twenty five and that leaves us with a revenue from male clients so 6,800 into twenty five minus two three eight five hundred expected revenue from male clients was sixty eight and a half thousand dollars and if we divide it by number of clients ten thousand that gives us sixty eight five hundred divided by 10,000 it gives us approximately six dollars 85 per client so we were charging twenty five doulas per client to the female services because they said that they mention that it's a mixture of hair and color than haircut color and shampoo and straightening and something like that but the male services are just the haircut okay so please don't be surprised these are just the numbers okay so we can calculate now second important part is assess the financial performance of the saloon using data above okay let's have a look at what data is provided well we see in the data already that we are given two years of we are given two years of financial statement income statement okay so horizontal analysis will be comparing sales of one year with the sales of another year so let's do the horizontal analysis first you don't need to write this down in the exams I'm writing down so that you can learn and remember the style how do we develop horizontal analysis okay you don't need to provide this heading you will just start ratios your heading will be ratios so first of all I will build all the ratios and then we can discuss them okay because once all ratios have been calculated or most of the ratios have been calculated on the first page then pages number two three four onwards we can keep discussing them okay so first of all let's compare them horizontally which is these sales sales growth or sales performance you can see the sales which is two hundred and thirty eight and a half thousand minus two hundred thousand dollars divided by last year two hundred thousand dollars into 100 that gives us sales increased over the last year so increase in sales was nineteen point two five percent over the last year sales increased by nineteen point two five percent over the last year now here is another piece of advice write one or two ratios of formulas okay but you don't need to write down all formula for the ratios only right for example if you are developing five horizontal ratios okay please listen to this carefully if you are developing five horizontal ratios just write down one formula how did you calculate this nineteen point two five percent okay and if you are doing the vertical ratios because all vertical ratios are separate so you go to write down not write down the formula but you need to write down how did you collect late so make sure workings should be presented because examiner's like to see how did you calculate the numbers okay second is cost of sales we can see cost of sales as well and this time I'm not writing down okay I'm not writing down the numbers I'm just calculating the difference 126,000 minus 94 thousand divided by ninety four thousand so cost of sales increased by thirty four percent it's the same thing current year's figures - last year figures divided by current year's figures sorry last year figures times by 100 okay now I can compare other things as well for example staff costs within the cost of sales so sixty ninety one thousand minus sixty-five thousand over 65,000 core hairdressing staff costs went up by forty percent approximately okay upwards arrow because I don't want to write increase all the time in the exams I will write down increase when I will discuss in the discussions the next one is hair products female clients so hair products gone down from 29 to twenty-seven thousand which is a reduction of approximately seven percent okay approximately 6.9 percent or you can make it seven percent if you like now there is nothing to compare with the male products because there was no male products last year now I can look at the gross profit gross profit increased from 106 to 112 thousand by the way if I just stop here for a minute based upon whatever I have calculated here you can see on the screen please tell me what how the business is performing on financial grounds and waiting for your opinions how the business is performing on financial grounds oh that's brilliant you are looking at the same thing I am that sales increased by 19% approximately okay but the cost of sales increased by 34% and because the cost of sales increase is a lot more than increase in sales so on any other grounds it may be good I don't know but on financial grounds it's not a very effective policy of the cost control it's like my income has increased by 19% but at the same time my expenses gone up by 34 percent so I am still using the overdraft or credit cards or loans so long as increase in cost or increase in expenses is within the increase of sales it becomes better financial performance but if the sales increased by a smaller margin and the costs have increased by a huge margin on financial grounds it is poor performance okay please keep in mind also we can develop some more statistics gross profit so here is the comparison of gross profit one hundred and twelve and a half thousand minus hundred and six thousand divided by one hundred and six thousand so gross profit increased by six percent approximately let's have a look at another one which are the expenses okay so we can look into the total expenses thirty two and a half thousand minus twenty eight thousand okay divided by last year twenty eight thousand in two hundred which is approximately 16% so expenses increased by 16 percent hold on a moment what do you think about this increase in expenses oh yes because business has grown up business has expanded from female to female plus male so as the business has grown up expenses normally increase and as the business has grown up revenue has increased as well so increase in revenue is nineteen point two five percent whereas expenses increased by only sixteen percent so this side of the financial performance is very effective positive or good performance that revenues increased by a larger margin whereas the expenses increased by an arrow or smaller margin so that reflects good financial performance and we can look at the profits as well that profit of 2008 going up to 2009 by two thousand dollars this is how we develop the horizontal ratios now let me show you some of the vertical ratios again you don't need to write down horizontal or vertical just carrying on with the ratios we can develop gross profit margin then we can develop expense margin then we can develop net profit margin more you will develop more three four lines against each and plenty of useful discussion can be developed now here is the gross profit margin gross profit in 2008 is 106 thousand divided by sales is the gross profit margin so 106 I can write down here in 2008 it was 106 thousand divided by sales figure times by hundred for a percentage I get 106 over 200,000 which is gross profit margin was 53% meaning if our sales were one hundred dollars out of hundred dollars fifty three dollars were coming out to us as profit or gross profit whereas in 2009 gross profit was 100 100 and twelve thousand five hundred so hundred and twelve thousand five hundred gross profit increased but sales increased as well so divided by the sales times by 100 so one one 12 and a half thousand over two three eight and a half thousand it gives me forty-seven percent and that's what you might have noticed because sales did increase but the cost of sales increased by a larger margin therefore gross profit from the given level of sales gone down in 2008 fifty three dollars were coming from hundred dollar of sales whereas in 2009 only forty seven dollars were coming out of hundred dollars of sales so we started losing some profitability which is a poor financial indicator expense margin we can develop exactly on the same lines and net profit margin we can develop as well let me show you expense margin in 2008 and then in 2009 in 2008 the total expenses were 28 thousand divided by sales that's the expense margin of 2008 whereas in 2009 total expenses were 32 and a half thousand and sales were two hundred and thirty eight thousand five hundred times by 100 okay so twenty eight thousand over two hundred thousand expenses were 14% of sales in 2008 whereas in 2009 expenses were thirteen point six percent of sales and that shows a reduction in total expenses sales increased on one side and expenses decreased on the other side which is a good so business is having a mixture of good and bad feelings good and bad financial performance and finally net profit margin again for 2008 and 2009 separately net profit of 2008 was 78 thousand and this 78 thousand was generated from sales of two hundred thousand dollars whereas the profit of two thousand and nine increased to 80 thousand dollars out of total sales of two hundred and thirty eight thousand five hundred so you can see wherever there is a definition of margin my denominator is sales so 78 divided by two hundred thousand I get net profit margin of 39 percent that out of 100 dollars of sales revenue $39 were coming to me as a profit or coming to Oliver actually as a profit whereas in 2009 eighty thousand divided by two hundred and thirty eight thousand five hundred gross profit so the net profit margin decreased to thirty three point five percent meaning we were receiving less money from the total sales in 2009 and what was the reason if expenses were properly controlled then the only thing was cost of sales cost of sales is one area where only we're really has to look into sales are going up which is good female customers male customers okay expenses are being controlled which is good also you can see the rent has an increased at all meaning Oliver was using the same premises he was using for female clients before and now he's using the same premises for male clients as well okay administration expenses didn't increase that much only five hundred dollars over a year and whenever businesses expand little bit increase is always there and also taking into account some inflation as well okay if you if examiner asks you you can develop some more ratios as well which I can show you so when you will be start looking at discussions okay here is your discussions what you need to do is you need to set up some paragraphs once you need to develop the ratios like this okay don't tell examiner which ratios are horizontal or vertical just that's the sales percentages cost of sales and then staff gross profit expenses and then margins different margins whichever are possible from the data provided once you have done this now you will be setting up some headings first of all discuss with the examiner sales performance what do you think about sales performance of Oliver's business is it good or bad well if you ask my opinion because it's purely judgmental okay what I have seen here is this that business is only two years old okay couple of years ago Oliver set up a business salon business and business has increased its customers or clients from female to male clients in 2008 revenue was only $200,000 and in 2009 the revenues gone up to two hundred and thirty-eight thousand which is 19 percent growth so in my view I can see it's growing and growing business simply reflects its good performance in terms of the excuse me in terms of the sales strategy it's not bad it's a newly started business and if the revenues are increasing with the passage of time brilliant okay also more diverse services before business was only relying upon female clients and now business is relying upon male clients as well so if any of the clients go up or down at least business has got better chances also can I see lower risk as the portfolio of the business has been diversified into male and female clients so any demographic changes any population structure changes or any local immigration changes business has got more chances that if female clients are going down on the other side male clients are going up as well so that business can be going concerned to some extent discuss this and then cost of sales okay so and you need to tell the examiner that sales performance is good but what were the reasons reasons was behind as I explained more male clients were introduced and with the help of more male clients our revenue increased okay because female clients were going down from 8,000 to 6,800 so any increase in this period was purely from the male clients cost of sales cost of sales of course cost of sales have gone up by 34 percent which is a poor spending strategy okay Oliver has spent a lot more than he should have spent he need to look at the staff wages staff wages gone up by 40 percent revenues increased only by 19 percent so if the wages were increasing by 19 percent I would have understood but the wages increased a lot the cost of sales increased a lot so probably Oliver needs to look into this that he should have a balance between revenue and its staffing levels a balance between its cost of sales and then business can improve its financial performance so you can tell the examiner the primary reason behind the increase in cost of sales was the increase in wages if you look at the information issue is hair products are decreasing from 29 to 27 so this cost is decreasing but on the other hand another cost is increasing by a huge margin 40% so that was actually the main reason okay that cost of sale increased by 34 percent which is a lot more than increase in sales revenue then you can discuss gross profit and margin another had a few lines and then you can discuss about expense or expense performance or expense strategy or control and tell the examiner what your ratios are telling you my ratios are telling me very good expense control by oliver sales increased by 19% and expenses increased by a lower margin so even business has grown up but the expenses didn't grow that much very good performance and then last but not the least discuss net profit performance and please don't criticize oliver straight away that profits increased by a smaller margin or profit margins are decreasing but at the same time we will appreciate that there may be less profit margin available from the male clients we are charging $25 to the female services and only 6 or 7 dollars to the male services so it could be a possibility that the male clients are giving us less amount of price and very low margin is available because again please don't criticize that the price charged to male services is very low no it could be in the market in the competitive market price is around six seven eight dollars for example and that's why oliver was charging as well because low margins are available from the male services and therefore profits will be less from the male clients but it's still if the customer growth increases zero to ten thousand and ten to maybe fifteen and then to 20 and so on and then in the long run that overall net profit may likely to increase also there was one thing about the expenses which you might have noticed which you probably you see this advertising as a long-term expenditure because whenever a new business starts whenever expansion takes place new expansion takes place companies spend money to promote its name and its services okay so advertising was 2000 and 2008 which has gone up by two hundred and fifty percent to five thousand dollars okay and it's probably to promote that we are launching mail services as well and I would see not bad thing it could be considered as a future promotion it would help us for a number of years once the mail client is established strong mail market for us and then it will be seen as like a capital expenditure sort of thing I mean not in accounting but in understanding in perception okay and we can discuss about the net profit now if examiner had asked us about qualitative aspects which is not part of this question if examiner had asked us to discuss some known financial measures for example quality now it is not part of this question but if I am looking at the Oliver's business and my issue is to check whether the quality of the business quality of the service provided is improving or it's not improving then what areas do I need to look at here is one thing that number of female clients are going down okay meaning from eight thousand to six thousand eight hundred and if I want to work out a percentage how much clients they lost as it as a percentage of last year it is approximately fifteen percent they lost approximately fifteen percent of their clients in one year and if the trend continues then there is a risk that they may lose more clients so I don't know what could be the reason I can only see because the rent did not increase rent remained the same ten thousand and ten thousand in two years so it could be a possibility Oliver was using the same premises without any change or maybe there was no kind of distinction between female area and male area so it could be a probability it was a unisex hair salon so here was one female client being served and here was another male client being served so I'm not saying please don't judge me on that number of people big may become slightly uncomfortable so a number of female clients may not be happy about this and that's why they said okay let's go to another salon which deals only the female clients okay and that could be one of the reasons the number of clients gone down number two please look at the hair products Oliver spent 27 thousand for 8,000 people 8,000 female clients in 2008 whereas sorry my mistake my mistake its 29,000 whereas the cost of hair products was $27,000 for 6,800 clients in 2009 so if I want to work out hair product cost per client okay it comes to 29 divided by 8 which is approximately three point six three per client and in 2009 27,000 over six thousand eight hundred twenty seven thousand divided by six thousand eight hundred and it just touches four dollars or three point nine seven and it looks like that's where Oliver has spent some more money cost of female hair products increased from three sixty three to three ninety seven and I think I can see better quality I can see better quality thirdly you can see the staff why the staff gone higher okay simply because they are hiring more people number one more hiring extra hiring and number two no staff was made redundant so same or more number of people were serving less number of female clients and I can see better quality because of sufficient staff in there so it could be a possibility I think what I can see from here is it's this downfall of the number of female clients is probably due to this mixing environment mixed environment okay and this is what you need to address as far as this business is concerned so Oliver needs to look into this area so as to put any demarcation you know any separate places and that may help to put the sales of female clients okay so that was all about corporate performance that if you are given one business as a whole organization how can we look into some financial and non-financial areas from the information provided okay so between ten to fifteen marks that's the maximum can be asked in one question so please read that steady text book any extra questions you can practice and any issues always come back to us remember to mail my tutor okay so take care all the very best goodbye