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analysing the internal position: overall position (marketing data (market…
analysing the internal position: overall position
operations data
productivity
average output per worker or equipment
increased productivity= increase in efficiency and better value from costs
unit costs
costs of making units
as a frim grows it can benefit from economies of scale
quality levels
vital in developing strong brand image
developing customer satisfaction and loyalty
repeat sales and high market share
can determine price
can be measured by: complains figures, defect rates, punctuality, customer service rates and speed of delivery
capacity utilisation
help to show how efficiently a firm is using staff, assets and resources
figures being consistently too high will cause operational problems such as low moral, quality issues and inability to accept new orders
HR data
labour turnover and retention
high turnover could lose skills and experience
can bring new skills and ideas
motivation and staff morale
can be difficult to measure
poor motivation can impact service, productivity, labour turnover, quality and absenteeism
can ultimately lead to reduced performance in key areas
absenteeism
poor morale and motivation could be the cause
labour unit costs and total staff pay
employer and employee relations
how effective is communication
marketing data
market size and growht
sales figures
market share
brand value and consumer awareness
product porfolio analysis
market structure, number of rivals
social trends, tastes and fashions
importance of analysis
used in comparison to other businesses and industry averages to be effective
core competency
main strengths of a firm
provides a competitive advantage over rivals
offers a distinct product
usually gained by setting lowest prices or offering differentiated products
results from a specific set of skills or production techniques that deliver additional value
the three main criteria
should make contribution to the perceived customer benefits at the end of production
be difficult to imitate by competetiors
provide access t wide variety of markets
methods and theories to access performance
Kaplan and norton
planning and management tool
match business activities to the aspirations set out in the organisations visions and strategies
aims to improve internal and external communications with stakeholders
states financial data insufficient to measure a firms performance
isn't saying that finance doesn't matter
to give balance managers consider 4 key areas:
1) financial perspective
2) customer perspective
how to company is viewed
how does the firm build and maintain loyalty
3) the companies internal process
what needs to be made to make the business more efficient for a business to meet its objectives
4) learning and growth
how the company will continue to improve
each area will highlight what a frim wants to achieve, how it will measure its performance, specifics targets and how they intend to do it
Elkington's triple bottom line
people
impact a frim has on people, how socially responsible it is and aspects such as safety, payment terms, amount and pay levels
profit
planet
aims to limit environmental impacts
states firms have responsibility for all stakeholders affected by operations
critisms
cannot total and compare 3 elements
can't always put monetary value on people and planet
can't translate benefit into financial terms
no legal requirement to do it