In measuring the results of a social network what are the a

In measuring the results of a social network, what are the a) advantages and b) disadvantages of performance measures linked directly to revenues verses costs?

Solution

Advantages

Identifying the vital indicators of your company\'s success will help you establish accurate performance targets. For example, the number of customers you have may not be as important as the total revenue your sales generate. Measuring your company\'s success through achievable goals is an aid in analyzing areas where your business excels and where it can be improved. If you rely only on figures that represent total sales, revenue or profits, you may not know where you can do a better job and how you\'ll be able to grow your operation.

Disadvantages

Setting performance targets can be a disadvantage to your company if you do not follow up on their progress. You must assess if your indicators are met by your employees, company-wide and in comparison to your competitors. Review your goals to determine if you must adjust them based on factors, such as the economy, new product releases from others in the industry or any reason that impacts your ability to meet your targets. In addition, if you chose to measure targets that are not as important as you originally thought, they must be replaced with essential indicators that offer an accurate representation of your company\'s activities.