3.7.3 Analysing Overall Performance Flashcards
Why might businesses compare data with data from other businesses
-allows them to see where they need to improve.
What are core competences
The capabilities of a business that are unique to that business and give it a competitive advantage over its rivals.
Why is core competences so important?
-Allow the business to compete in different areas.
-Core competencies are hard for competitors to copy
-therefore makes the business more competitive.
-businesses should be able to change its core competences to meeting the changing demands of the market.
What are the four different perspectives managers need to consider when using kaplan and nortons balanced scorecard model?
-the financial perspective
-the internal business process perspective
-the customer perspective
-the learning and growth perspective
What is the balanced scorecard model?
-used to assess business performance and in developing implementing and monitoring strategy.
-uses both financial and non financial data.
-looks at 4different perspectives. For each managers need to consider: -objective eg. Increase profitability
-measure eg. ROCE
-target eg. Increase ROCE by 3%
-initiatives eg. Promotional campaigns.
One advantage and disadvantage of using balanced scorecard model?
Advantage: is valuable as it treats the business as a number of dependant, rather than independent, functions -this means all departments need to consider how their actions will impact others.
Disadvantage: there can be problems implementing the model- there’s a possibility of information overload, potential conflict if one target contradicts the other and difficulty putting the initiatives into place.
What are the areas of performance measured by the elkingtons triple bottom line model?
-profit: the financial or economic value created by the company
-people- a company’s social values and the way it treats its employees and the local community.
Planet- a company’s environment values and impact on the environment.
