3.7.2 Analysing Internal Position. Flashcards
Types of non financial information to asses internal position.
Big data.
Different elements to big data.
Operations data.
HR data.
Marketing data.
Outline operations data
Plannin and controlling the production process:
Productivity of labour and capiral.
Measures of quality.
Capacit utilisation.
Outline productivity data.
Measured with two types of productivity.
Single productivity and multi-factor productivity.
Single factor productivity measures
Labour productivity.
Capital productivity.
Analysis of productivity data leads to
Measure of efficiency (converting inputs into outputs)
Efficiency definition
How well inputs are converted to outputs.
Measure of efficiency leads to
Higher productivity = less inputs
Lower costs per unit.
Make lower than competition - flexibility.
Flexibility = competitive advantage.
Multi factor productivity definition
Measures all outputs in relation to inputs.
Efficiency is measured in unit
Unit costs of production
How to measure quality.
Customer loyalty and satisfaction.
Specific elements in operational performance e.g. number of faults and response times.
Capacity utilisation chain of analysis.
(- - = links)
Measures existing output relative to the maximum figure - -
- allows cheaper production costs to offer competitive prices - -
- some businesses generate extra revenue at little extra costs - -
- price competitive industries (price elastic), high levels of cu = low unit costs = acceprable profit margins = competitive prices.
Measuring capacity utilisation weakness
Takes no account of cost resources, just measuees efficiency.
Capacity utilisation formula
(Actual output / maximum possible output) x 100.
