BU111 Lecture Notes - Lecture 1: Critical Success Factor, Cash Flow, Liquid Oxygen
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BU111 Full Course Notes
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Chapter 1: environmental analysis & critical success factors. Lo-1: explain why it is important for an organization to know its external environment. A company must be able to know itself (capabilities, strengths, weaknesses, preferences) to be successful. However, must also be aware of the environment as it provides threats and opportunities. A company that aligns its strategy with its environment, it is better able to harness its own strengths/opportunities and avoid weaknesses/threats. Lo-2: describe and explain importance of each of the six critical success factors: achieving financial performance: positive cash flow, growth and profitability (varies depending on life stage of company). Important because organization needs money to finance day to day operations and grow. Without money cannot achieve other csf"s: meeting customer needs: understanding what customer wants/will want in the future. Failure to meet customer needs means they will buy elsewhere.
