BU121 Study Guide - Midterm Guide: Competitive Advantage, Social Business, Kodak
Document Summary
The relationship between the firm and its external environment. How they apply to different types of businesses. Achieving financial performance: positive trend of profitability, expansion and growth = continued profit, how profitable a company is in comparison to other companies of same industry. Encouraging innovation and creativity: creating same products at lower costs = financial performance (expenses going down and revenue going up, creating new products that people don"t even know they want, if you are innovative, competition will be. When custom er needs are met, they will buy product. Better quality products = less returns and more people wanting to buy. Producing same goods at lower price = increase in revenue. People willing to spend more on quality products or target may be people who don"t want to spend a lot = less quality product. More committed employee will sell more due to passion (more time and effort) and knowledge about product.
