BU111 Study Guide - Midterm Guide: Small Business, Customer Switching, Starbucks
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BU111 Full Course Notes
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Document Summary
The relationship between the firm and its external environment. Is needed for the customer to buy the product and thus increase revenue. Revenue is needed to achieve financial performance: gain employee commitment, linked to creating quality products and services, innovation and creativity, meeting customer needs, and achieving financial performance. Indirectly effects financial performance by meeting the other factors. Effects expenses because consistent quality can be achieved processes that are continuously improved and standardized. This reduces expenses by reducing number of defective products: building distinctive competitive advantage, financial performance: effects the prices the organization can charge. It is linked to all other success factors because it can be the result of a strength of the other success factors. The critical success factors are important because they: guide strategic and daily action, ensure success overtime, ensure holistic thinking, used to evaluate whether the businesses are on track. Diamond-e model: key variables, connection among variables, principal logic, examples.
