Chapter 1

Question 1

What does is mean to achieve financial performance?

Answer 1

The achievement of positive cash flow and profitability.

Question 2

What are the 6 critical success factors?

Answer 2

1. Achieving financial performance
2. Meeting customers needs
3. Producing quality products and services
4. Encouraging innovation and creativity
5. Fostering employee commitment
6. Creating a distinctive competitive advantage.

Question 3

What does producing quality products and services really mean if it does not mean producing the best quality?

Answer 3

It means producing at a level of quality that customers view as appropriate for the price paid

Question 4

Define innovation and creativity.

Answer 4

Defined as the ability to identify and implement new and improved ways to execute any of the organizations activities.

Question 5

What does it mean to create a distinctive competitive advantage?

Answer 5

It means the organization is able to do something significant in a way that is unique and valuable in comparison to other organizations.

Question 6

Define strategy.

Answer 6

Strategy is the plan the organization has put in place to pursue opportunities or avoid threats it has identified in the environment.