Metrics are policies taken by a company s top most management which would enable it access its performance over the past period and later apply guidelines geared to its success. Metrics are finance based and they determine the behavior of a company leading to its performance. It takes into account the needs from share holders, customers and employees.
In the discussion, I am going to access the metric and history of Abercrombie and Fitch, its performance which include measures of productivity. In addition, I am going to cover the experience of customers in service provision and history of the metrics covered in the past 3 to 5 years.
Abercrombie and Fitch Company was started in the past 122 years, as an outfitter of sportswear equipments. Later on its name was revived into a new investment. In which it started dealing with youth cloths which are mostly luxurious. In the past five years, the company as experienced a steady growth in teams of equity and profitability. This is for the reason of its good strategic plan and a larger customer base.
In order for a company to succeed, there are factors to consider, they include the management and its relationship between customers. Perhaps the methods of cost management depending on the products sold. The company for instance uses target costing, which entails, the production of products depending on the number of customers, it involves the care of customer needs and preferences. It also takes into account the customer s purchasing power. Its products target young customers who desire a luxurious life.
The cost of goods sold and the sales result to a gross profit margin, it’s usually expressed in a percentage. The company lists its gross profit margins quarterly and there is an increase in performance. Another key performance evaluation tool is the share capital and rate of capital return. For this reason we are going figure out the performance based on the tools.
Abercrombie and Fitch Company also use strategic cost management which involves. Production of goods with cost minimization mechanisms. Such as target production of the goods.
Below is a table showing the quarterly gross margin in the past 5 years.
The above table shows the quarterly gross profit margin within the last 5 years.
The metric measure can prove that the company has a great profit margin. An experience of good management of costs also customer relations.
Goranson, H. T. (1999). The agile virtual enterprise: Cases, metrics, tools. Westport, Conn: Quorum Books