When establishing criteria to measure the success of a customer-oriented business, managers should
A) limit their attention to financial measures such as profit and return on investment since these are the only objective and quantifiable measures available.
B) focus most of their attention on measures of employee satisfaction, since without good employees the firm will not be competitive.
C) focus primarily on financial measures, but pay some attention to nonfinancial concerns.
D) recognize that, while financial measures are important and should be considered, the purpose of the firm is to satisfy both internal and external customers.

Question

Quizplus · Accepted Answer

Financial measures of success, such as profit and return on investment, are important and should not be ignored. In fact, these measures have traditionally been the measures most frequently used to judge success. Today, however, the purpose of a customer-oriented firm is to please all of its stakeholders. Thus, nonfinancial criteria also play an important role in measuring the success of a firm.

When Establishing Criteria to Measure the Success of a Customer-Oriented