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Profitability and Productivity: Decision Areas

In: Managing Retail Productivity and Profitability

Author

Listed:
  • David Walters
  • Dominic Laffy

Abstract

Before we consider decision-making in detail we do need to consider a framework within which we can assess the effectiveness of the decisions made within the business. Fitzgerald et al. (1991) made a major contribution to the area of performance measurement in service businesses. They offered a controlling framework for service businesses which includes both quantitative and qualitative measures. They argue that many businesses offer a product which is intangible … it is difficult to measure performance: ‘hard’ measures such as profitability tend to drive out ‘soft’ measures like customer satisfaction, even though the intangible aspects of services may be important sources of competitive advantage. Monitoring the amount spent on them and their efficiency and effectiveness may be vital to competitive success.

Suggested Citation

  • David Walters & Dominic Laffy, 1996. "Profitability and Productivity: Decision Areas," Palgrave Macmillan Books, in: Managing Retail Productivity and Profitability, chapter 3, pages 79-100, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-1-349-24621-2_3
    DOI: 10.1007/978-1-349-24621-2_3
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