Question

Which of the following would be an example of a market performance objective for Record World?

1) Open or acquire five to ten stores over the next year.
2) Increase this year's net profit margin by 3 percent over last year.
3) Improve public relations with customers by holding two major in-store events per six-month season.
4) Increase labor productivity by 12 percent over the next six months.
5) Increase return on assets from 12 percent to 15 percent over the next 12 months.

Answer 1

The objective to Increase the net profit margin by 3 percent is an example of a market performance objective for Record World, as it aims directly at improving financial performance.

Step-by-step explanation:

An example of a market performance objective for Record World would be Increase this year's net profit margin by 3 percent over last year.

This objective is focused on improving financial performance, specifically targeting an increase in net profit margin, which is a clear indicator of efficiency and profitability. The net profit margin measures how much of each dollar earned by the company is translated into profits, and enhancing this margin is crucial for the overall success and competitiveness of the business.

Other objectives outlined, such as opening new stores or improving public relations, contribute indirectly to market performance but are not as directly tied to the financial metrics like profit margin growth or return on assets.