Topic 2- Value And Importance Of Information. Flashcards
Why do managers need information?
They need information to make decisions, for planning, directing, controlling and forecasting.
How does information aid decision making?
- The more information that is relevant, the less of a risk in making the decision.
- Enables managers to make actions.
- Simulations can be performed.
How can information be used to monitor progress?
Companies can be used to see how well they are performing against their targets.
What advantage does information give?
Understand customers to why they chose specific customers.
Ensure that customers are satisfied but accurate stock control.
Be able to anticipate customer demand.
Why should data be accurate?
Customer may be sent the wrong items.
Customer being invoices the wrong amounts.
Buyers basing stock ordering on incorrect sales information.
Misreadings can mean embarrassing results.
Why is up-to-date information important?
Legal requirement to keep data up to date of not it could lead to prosecution.
A letter could be sent to someone who has died but information is not up to date.
Could threaten legal action for a customer not paying but they have paid.
Why should data be complete?
Manager may have to base a decision on results that aren’t complete and missing something that could change the decision.
Not included a postcode could slow the letter down in the delivery process.
