BU121 Study Guide - Midterm Guide: Competitive Advantage, Social Business, Kodak

117 views22 pages
School
Department
Course
Professor
BU111 Midterm Review
The relationship between the firm and its external environment
Critical success factors
What they are
Why they are important
How they connect to each other
How they apply to different types of businesses
What they are
Achieving Financial Performance
o Positive trend of profitability
o Expansion and growth = continued profit
o How profitable a company is in comparison to other companies of same
industry
Meeting customer needs
o Not just meeting needs today, but what they want tomorrow (creating
something they didn’t even know they needed)
o Understanding their wants
o Socially accountable customers (people starting to care more about the
social impact of the products they’re buying)
o Customers are what generate sales, so need to meet their needs or
someone else will
Building quality products and services
o Giving them the quality they paid for => money reflects value and
customers want value for their money
o Consistency is key => need to be high quality product every time; this is
what franchises are built on
o If we don’t build quality products and services, we create more expense
for ourselves (having to fix it, refund - giving money back to customer, or
garbage of product wasting resources)
Encouraging innovation and creativity
o Creating same products at lower costs = financial performance (expenses
going down and revenue going up)
o Creating new products that people don’t even know they want
o If you are innovative, competition will be
Gaining employee commitment
o Employees are stem of any organizations
o Attracting, keeping and motivating high quality employees is key!
o If they don’t like it, they will leave but you have spent money and time
training them = competition will benefit and you’ll have to train someone
new
o Achieving - Getting your employees incentives to innovate, make them
feel involved in end product, making them a part of the organization to
gain full commitment
find more resources at oneclass.com
find more resources at oneclass.com
Unlock document

This preview shows pages 1-3 of the document.
Unlock all 22 pages and 3 million more documents.

Already have an account? Log in
Creating a distinctive competitive advantage
o In perfect competitions, all products are the same, deciding factor is price
(ie gas station with lower price will get more customers)
o Achieve this through sustainability
o Example Apple people believe Apple is a better product so will spend
much more
How
they
relate
Financi
al
Perfor
mance
Custom
er
needs
Quality
products and
services
Innovation
and
creativity
Employee
commitment
Competitive
advantage
Finan
cial
Perfor
manc
e
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
More
committed
employee will
sell more due
to passion
(more time and
effort) and
knowledge
about product
IE Walmart
Financial
powerhouse
- more
money =
able to do
more to
increase
advantage
Custo
mer
needs
People
willing to
spend more
on quality
products or
target may be
people who
don’t want to
spend a lot =
less quality
product
Constantly
meeting
customer
needs
through
innovation
-
customers
may have
a need that
you can
create a
product to
solve that
need
Good
Employees
will identify
and meet
customer
needs
IE WestJet
Is known for
their
customer
service and
is therefore
their distinct
competitive
advantage
Qualit
y
produ
cts
and
servic
es
- new
innovation
makes the
product/se
rvice
better
Employees
will take pride
in their work
when creating
quality
products
Quality of
their
products may
be their
distinct
competitive
advantage
Innov
ation
and
creati
vity
If employees
have an outlet
for their
projects to be
showcased =
Constantly
creating new
products and
services is a
competitive
find more resources at oneclass.com
find more resources at oneclass.com
Unlock document

This preview shows pages 1-3 of the document.
Unlock all 22 pages and 3 million more documents.

Already have an account? Log in
more
committed
employees and
new products
advantage
(samsung,
apple)
Empl
oyee
comm
itmen
t
With a
competitive
advantage,
employees
will want to
work for you
(known
brand)
Comp
etitive
advan
tage
IE
Joes Java
o Meeting customer needs
o Achieving financial performance
Studio Celtica
o Gaining employee commitment
o Quality products and services
High Tech Bar Top
o Innovation and Creativity
o Competitive advantage
SOS
o Achieving financial performance (price high enough to help people but
low enough for people to afford to attend sessions)
o Building quality services (having an 11 or 12 in the course) -> meets
customer needs
o Employee commitment (returning employees he knows what works well
creating a better service) -> will return and therefore make sessions better
for future years, learning from mistakes and creating better products
o Innovation and Creativity (bringing in new people to create new products/
improve services) -> leads to gaining employee commitment because
engages them fully and take pride
o Meeting needs of customers is when the customers need the help and
support when students need it the most -> lead to financial performance
for charity
o Competitive advantage the best session so far
Why they are important
Tell you how to be successful in a business
Need them all because all related if one fails there will be a domino effect and
financial statement will suffer
find more resources at oneclass.com
find more resources at oneclass.com
Unlock document

This preview shows pages 1-3 of the document.
Unlock all 22 pages and 3 million more documents.

Already have an account? Log in

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.

Get access

Grade+
$10 USD/m
Billed $120 USD annually
Homework Help
Class Notes
Textbook Notes
40 Verified Answers
Study Guides
Booster Classes