3.7.3 analysing the existing internal position of a business

Question 1

what are some examples of marketing data?

Answer 1

loyalty cards, trend information, customer feedback, demographics etc.

Question 2

what are some examples of HR data?

Answer 2

labour turnover, labour retention, employee absenteeism etc.

Question 3

what are some examples of financial data?

Answer 3

liquidity, OPM, GPM, current ratio, ROCE, gearing ratio, balance sheet etc.

Question 4

what are some examples of operations data?

Answer 4

inventory turnover, faults data, labour productivity etc.

Question 5

what are core competencies?

Answer 5

the unique abilities of a business that provides it with a competitive advantage

Question 6

what is profit quality?

Answer 6

the sustainability of profit

Question 7

what is the balanced scorecard?

Answer 7

Kaplan and Norton’s theory. 4 different perspectives: financial, internal processes, customer and organisational capacity.

emphasises the importance of financial and non financial measures of success.

Question 8

what are some benefits of the balanced scorecard?

Answer 8

broad view of business performance, links performance to long term, involves everyone in the business, highly flexible etc.

Question 9

what are some drawbacks of the balanced scorecard?

Answer 9

hard to have balance between the 4 perspectives, needs to be updated regularly etc.

Question 10

what is Elkington’s Triple Bottom Line?

Answer 10

Profit, planet, people.
business performance is not just financial. business should be equally considering all 3 points