7. 3 Analysing Internal Position Flashcards
What is Big Data?
Has allowed businesses to spot trends in consumer behaviour but can also be used to a businesses internal functions and assess their strengths and weaknesses
How can big data be used to measure operational performance?
Measures of quality
Capacity utilisation
Productivity of labour and capital in production
What does productivity show a business?
Lower unit costs
The efficiency of how a business converts inputs into outputs
What is multifactor productivity?
Reflects the overall efficiency with which labour and capital inputs are used together in the production process
How can quality be measured?
Repeat purchases
Customer satisfaction
Measuring aspects of operational performance- faulty etc
What is meant by capital utilisation?
Measurement of existing output compared with the maximum figure
What things would HR be looking to track?
Labour productivity Absenteeism rates Health and safety data Labour cost per unit of production Costs associated with employees, such as average wages and recruitment costs Labour turnover and retention
What is important about absenteeism and labour turnover?
Lacks engagement and motivation - less competitive
Short term decline in productivity
Recruitment and training costs
What is a core competency?
The collective learning in the organisation, especially how to coordinate diverse production skills and integrate multiple streams of technologies
Why are core competencies important?
Enable businesses to enhance performance
Provides competitive advantage - market leadership
Right amount of resources in the right area of its operations
Adds value
Market power - distinctive and unique goods/services, increased competitiveness
What could be the issues with core competencies?
Outsourcing - the workforce becomes more fragmented, people are working for different organisations with different goals and objectives
Outdated - in a world with rapid change, having core competencies is unlikely to support managers to meet customers evolving demands
What influences short and long term performance?
R&D Profit quality Employee engagement Customer satisfaction Sustainability
What are the two theorists that measure performance?
Kaplan and Norton
Elkingtons Triple Bottom Line
What is Elikintons theory?
People
Planet
Profit
What is People?
The impact on the people e.g.
Health and safety matters - working environment (suppliers)
Financial matters - wages, paying suppliers fair prices
Fair trade
