Sucess Factors Flashcards
In the past how were business run
Run by autocratic managers
No ethical consideration
Unfair labour policies
Exploited resources and workers
New trends
Triple bottom line (people planet profit)
Ethics- Morals and values impact decisions
Laws that protect workers and govern labour practices
Businesses must consider Macro, market and micro environment issues which impact the business
Business try to explain variables
What makes a business successful
Effective management and leadership SMART goals Mission statement Competitive advantage Controlling the critical success factors
How is success measured
Financial ….. Non-financial…..
- value of assets -employee satisfaction
- profitability -customer satisfaction
- turnover - goodwill
- sustainability
Success Factors For Restaurants
Tight control cost Trained and dependable staff Convenient location Food quality Cleanliness Controlled wastage Friendly service Target market needs
Success factors for retailers
Product lines and variety Customer credit available and controlled Personalized service Location Competitor strategies Store management and leadership
Success factors of manufactures
Manufacturing cost per unit Distribution cost per unit Quality of products On time delivery Meet needs of customers Economies of scale (demand and supply)
Factors contributing to a businesses success
~Sustainability- means that the business can continue to exist despite all the challenges
~Profitability- money is managed in such a way that there is a sound return on investment
~Customer base- you have a continuous base to sell to
~A great idea- goods and services must fulfill the needs of consumers and a successful business will offer better goods than its competitors
~A clear strategy, this means having visions and goals and plans to achieve them
~good man agent principals- having the elements of management in place and being professional and ethical
~Correct form of ownership- operating the business under the most suited form of ownership
The 3 p’s
People
Planet
Profit
Business that are sustainable…
Are more successful
Attract and keep more employees and customers
Experience less of a financial risk and reputation
How to manage a sustainable business
~Have the skills to ensure the business is successful and will continue in the future
~Be able to put stratagems in place to address problems and threats
~ensure that all sufficient funds are available for the future
Practices that promote businesses sustainability include..
~involving stakeholders in all decisions mailing and learning from them as well as your customers and community
~having environmental management systems in place to minimize the effects of business activities and avoid causing damage to the environment
~analyzing the environmental and social impacts of the products/services and aiming to reduce waste
~being transparent, this means reporting all info relevant to the business to stakeholders such as its true financial position
Profitability
A business must ensure it is able to make maximum profits and grow on a year to year basis
It can be measured in 2 ways..
- costing
- pricing
Costing
Calculating exactly how much the products costs to produce
Overhead costs consist of… labour, maintaining equipment, rent, water and electricity..etc
It also includes the break even point
Break even point
Where all costs of the product are covered by the sales and anything after this point is a profit
