7 - Overall Performance

Question 1

How Can A Business Measure Its Overall Performance?
(7 Points)

Answer 1

~ Financial situation of the business. E.g. Income statement and balance sheet.

~ Compare to previous times to find trends.

~ Compare to key rivals or the industry averages, via benchmarking.

~ Look at functional data metrics to evaluate performance.

~ Core competences.

~ If decisions made in the ST will affect the LT.

~ Elkingtons triple bottom line.

Question 2

What Are Core Competences?
(3 Points)

Answer 2

~ A set of skills or activities that an organisation performs better than other functions.

~ They are capabilities that rivals do not have.

~ Can lead to a competitive advantage.

Question 3

What Is The Importance Of Core Competences?
(3 Points)

Answer 3

~ Offer benefits to consumers, so they choose your brand.

~ Can be hard to copy, or are patented.

~ Create added value.

Question 4

What Are The Drawbacks Of Core Competences?

Answer 4

Hard to maintain overtime, due to the dynamic nature of the business.

Question 5

What Is Elkington’s Triple Bottom Line?
(3 Points)

Answer 5

~ Used to measure performance and to encourage sustainability.

~ Idea is that the business is responsible to all their stakeholders and the planet, not just towards profit.

~ Gets the business to consider its actions and social responsibility.

Question 6

Describe The Features Of Elkington’s Triple Bottom Line
(4 Points)

Answer 6

~ Profit -> Economic performance, for stakeholders.

~ Planet -> Environmental performance, for society.

~ People -> Social performance, for stakeholders.

~ Middle -> Sustainability.