Supplier performance management is crucial for a company’s success, with managers setting goals and evaluating suppliers using scorecards. Communication and determining the importance of suppliers are also key factors, with software used to generate graphs and compare suppliers. In the manufacturing sector, companies depend on suppliers who provide raw materials, equipment and utilities. Many business […]
A performance fee is an incentive-based compensation that investment managers may charge, based on a percentage of the profit made on an investment for a client. The structure varies, and some managers receive a regular salary instead. Critics argue that performance fees may incentivize managers to take unreasonable risks. A performance fee can refer generically […]
Calculating the yield advantage helps companies determine if holding onto convertible securities is a wise financial decision. It compares the dividends from common stock with the yield on convertibles and can indicate if portfolio revisions are necessary. Diversifying the portfolio helps overcome adverse market trends. The yield advantage is an essential tool for understanding the […]
Hospitality yield management systems adjust prices based on demand for products, using historical data to determine future needs and the minimum price to sell goods. This tool is used in the sale of hotel rooms, rental cars, and airline tickets, and helps companies get the highest possible price for their goods and services. Yield management […]
Yield maintenance is a prepayment fee calculated on the movement of interest rates over the period of time securities are held. The formula considers the present value of outstanding payments and helps investors secure a reasonable rate of return on commercial mortgages. Yield maintenance is a form of prepayment fee or premium that is calculated […]
A performance gap analysis helps businesses identify the difference between standard and actual performance, and find ways to close the gap. It can be caused by internal or external factors, and solutions may include training, equipment upgrades, or adjusting standards. A performance gap analysis is performed by a business that wants to determine why there […]
Financial performance management monitors financial results and compares them to budgets or forecasts to achieve specific goals. It applies to investment management and business operations, with constant adjustments to meet changing market conditions. It involves analyzing income and expenses to make decisions on increasing sales, reducing costs, and managing financial performance. It is a necessary […]
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