Non Financial Performance Measures and Firm

Question: Discuss about the Non Financial Performance Measures and Firm. Answer: Introduction Non financial performances need to be required to analyze by each and every company to know about the expected performances of the company, and for taking an effective decisions. Although financial performances measures the financial results of the company, but non financial performance tells about the performance quality features about the company. These factors plays an important role in making a company different from its competitors that is point of differentiation can be achieved (PMC, 2014). In ensuring the success of the business various elements play a key role. That is, besides financial factors, non financial factors also play a considerable role. Like management of key areas like human resource, quality measurement of the products, company profile and employee reviews, environment sustainability factors (Trillium asset management, 2015). Gilead pharmaceuticals Gilead pharmaceutical company is a biopharmaceutical company; it has a target area across the world as it offers the medicines in 150 countries. It provides treatment on oncology, immunology, cardiology, endocrinology, dialectology, and neurology. It also provides nutritional treatment. The company mission statement is to remain affordable, and provide safe healthcare across the world. The current ratio of the company is 2.50 in 2015 that shows that it will have a good liquidity position (Prezi, 2017). Non-financial performance The aspects of non financial performance are that in analyzing the companys success apart from financial aspects, non financial aspects would also be considered. The performance analysis of the company would be discussed, which describes about compliance to its corporate social responsibility, and the companys internal control system. It also tells about long run aspects of the company. It highlights the companys strength in respect of services to the customers, quality of production and satisfactory performance given to the employees (Emeakponuzo, 2014). The positive aspects of non financial performance of Gilead Inc The key advantage of company in case of its performances is that it does not test on animals for their medicines production. The main strategy of Gilead is to diversify. And for diversification they expands their business so to employee more employees. Another positive aspect the Gilead Inc has is research and development. The company has increased its expenditure too in research and development. The company Gilead Inc has an increase in return on assets. It is due to increase in sales of the company. Apart from this the company has good control over its inventory tool, as they keep record of their inventories across the markets they have; hence by this they are able to avoid the situation of stock outs. The company has a partnership with Clinton health access, this partnership helped the company in purchasing medicines in bulk, hence the company also a gets a cost advantage because of this. In respect to the non financial performance, Gilead was considered as number one position by the Chronicle of Philanthropy in respect of donating funds to many corporations in order to meet the medical needs and to reduce the affects of diseases like viral hepatitis, HIV. In case of production Gilead produces approximately 900 million tablets of oral medicines and approximately 900million liquid medicines as per 2014 report (Gilead, 2016). In respect employees wellness Gilead conduct a campaign annually in which they challenges their employees to stay healthy. It is an eight week program in which the employees have to take 10,000 steps per day. For this personal devices can also be used to keep a record. It is to motivate employees to remain healthy. At this campaign high risk factors like cholesterol level, body mass index, sugar level, and blood pressure are measured. This campaign is free for all regular employees. Apart from this the employees are also allowed to buy fresh fruits, organic produce, vegetables. In case of sustainability of environment, Gilead used to recycle its dugs and medicines so to reduce the environmental impact (Gilead, 2014). Conclusion These factors play a considerable role in performance of the company. In the given case of Gilead Inc, these factors make the company different from its competitor and increase it sales; it made a positive impact on return on assets. The benefits managers get through non financial performance is that it would be easy for them to make corporate decisions and take decisions in an effective manner. These factors are considered as relevant because they increase the brand value and company image in the minds of the consumer in respect of point of differentiation. These aspects describes that whether the company is working in right direction or not. References Emeakponuzo,D,E. (2014) Non-financial performance measures and firm value in Nigeria: What is the link?. British journal of economics, management trade. Vol 4, issue 6. Gilead. (2016) Gilead publishes 2015 corporate social responsibility report. Retrieved at https://www.gilead.com/news/csr-report-2015 Gilead.(2014) Sustainability report 2014. Retrieved at https://www.gilead.com/~/media/files/pdfs/other/gilead_sr_2014_final.pdf?la=en PMC. (2014) Development of an integrated performance measurement (PM) model for Pharmaceutical Industry. Retrieved at https://www.ncbi.nlm.nih.gov/pmc/articles/PMC3977072/ Prezi. (2017) Gilead Science Inc. retrieved at https://prezi.com/gpk0wotaju6i/gilead-sciences-inc/ Trillium asset management. (2015) Gilead science, Inc.- Sustainability reporting (2015). Retrieved at https://www.trilliuminvest.com/shareholder-proposal/gilead-sciences-inc-sustainability-reporting-2015/