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RAISE CUSTOMER PERFORMANCE MEASUREMENT - a measure of the degree to which the product or service
provided raises the performance level of the customer. (For scoring, use:
Dramatically Increases Performance (5); Significantly Increases Performance
(4); Moderately Increases Performance (3); Slightly Increases Performance
(2); No Affect On Customer's Performance or Lowers Customer's Performance
(1).) RAZOR AND BLADE PRICING STRATEGY - see Cross Subsidization. REENGINEERING - essentially means doing things differently. The goal is
to apply people, technology and processes in a more rational way in order to
better support the business strategies and business objectives in today's
environment. RELATIVE COMPETITIVE POSITION IN EARNINGS - a measure used to evaluate the earnings of a business
vis-à-vis its competitors. (For scoring, use: Top Fifth (5); Second
Quintile (4); Middle Fifth (3); Fourth Quintile (2); Lowest Fifth (1).) RELATIVE COMPETITIVE POSITION IN MARKET SHARE - a measure used to indicate a the market share of a
business, in terms of industry volume, vis-à-vis the competition. (For
scoring, use: Leader of the Pack (5); Major Player (4); Middle of the Pack
(3); Visible, But Small Market Share (2); Not Yet on the Market Share Pie
Chart (1).) RELATIVE COMPETITIVE POSITION IN REVENUE - a measure used to evaluate the revenue of a business vis-à-vis
its competitors. (For scoring, use: Top Fifth (5); Second Quintile (4);
Middle Fifth (3); Fourth Quintile (2); Lowest Fifth (1).) RELATIVE PRICE PERFORMANCE OF SUBSTITUTES - see relative value / price. RELATIVE VALUE / PRICE - is the value/price of a substitute relative to the
value/price of the product it seeks to replace. RVP is sometimes further
modified as expected (or buyer's perception of) RVP, and reality of RVP.
[Source: M. Porter] RESIDUAL VALUE - liquidation or sale value - the value of the firm at the
end of the forecast period. Residual value depends on a careful assessment
of the competitive position of the business at the end of the forecast
period. (Alternative method for defining residual value using the perpetuity
method: "Residual Value" = "Perpetuity Cash Flow" /
"Cost of Capital") [Source: A. Rappaport] RESOURCE ALLOCATION MISSION - a measure of the change in the level of equity required by the business unit. (Frequent terminology used to describe resource mission alternatives include: Grow, Maintain, Shrink, Fix, and Exit.) RETURN ON EQUITY - is the ratio of Net Income divided by the Book Value of Shareholders Equity. ROE is a commonly used measure at the corporate level. (ROI is commonly used at the business unit or divisional level. ROI and ROE are both subject to accounting conventions and distortions. Discounted Cash Flow measurement is often used to overcome accounting distortions because it is an economic measure.) RETURN ON INVESTMENT - is the ratio of Net Income divided by the Book Value of Assets. ROI is a commonly used measure at the business unit or divisional level. (ROE is commonly used at the corporate level. ROI and ROE are both subject to accounting conventions and distortions. Discounted Cash Flow measurement is often used to overcome accounting distortions because it is an economic measure.) RISK - please see Business Interruption Risk; Business Risk; Commercial Automobile Risk; Computer Risk; Contingency Risk; Country Risk; Credit Risk; Data Risk; Director / Officer Ins.; Earthquake Risk; EEO Insurance; Employee Health Insurance; Employee Life Insurance; Environmental Risk; Errors & Omissions; Fidelity and Surety; Financial Risk; Finite Risk; Flood and Fire Risk; Foreign Exchange Risk; Fraud Risk; General Liability; Health Care Management; Interest Rate Risk; Ocean Marine Insurance; Operating Risk; Product Liability Risk; Privacy Risk; Processing Risk; Professional Liability; Property Insurance; Settlement Risk; Sexual Harassment Risk; Timing Risk; Workers' Compensation; zRisk of Everything Else. |
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