Management Essay Example | Topics and Well Written Essays - 500 words - 24

Management - Essay Example This is because when a company is operating independently within the market they may be more privy or more â€Å"in the loop† to market information that exists. This could make them more capable of adapting to market changes and could also make them more capable of gaining a competitive advantage through things like innovation. An example of information being lost is if, say, a company has its own program for measuring performance and then has to switch to the program of the company that acquired them. Certain information may not transfer in the same way or may be considered irrelevant by the absorbing company. In this way information could get lost in the mix. This is not only true for information but for the organizational culture and structure of the company as well. Since economic performance is important to any company, implementing performance methodologies that are in line with overall economic performance is crucial to a company’s success. An effective performance methodology should be in line with the company’s overall performance. In other words, anything that influences a company’s economic performance needs to be accurately measured. Once these measurements are in place, a more accurate assessment of the company’s overall performance will be realized. An effective analogy could be to look at a football game. The goal of a football game is to score more points than the other team. All of the other measurements statistical measurements used in football are secondary. Yet it is also important to find out which of these measurements led to one team scoring more points than another team. In this way you can get a better idea of how the team is winning games and focus on improving in those areas that are the most i mportant for success. Finding the optimal transfer price is important because it can help to maximize a firm’s overall profits. Effective transfer pricing is therefore important to the overall economic performance of the