Question

Explain the need for monitoring mechanism.

Answer 1

The following are the reasons for need for monitoring mechanism:

1. Understand the business: The main and important reason of monitoring is to understand where the business is heading and what are the upcoming opportunity.
2. Decision making: The monitoring mechanism helps to understand whether the business is making profit and loss and helps to make modified decision.
3. Competitive edge: Monitoring mechanism helps to understand the business which helps to get competitive edge over their competitor.