1
Q
What do revenues measure?
A
Total income generated from sales before expenses
2
Q
What can affect revenues?
A
Sales volume, pricing strategy, market demand, and economic conditions.
3
Q
What can revenues affect?
A
Investment capacity, business growth strategies, and overall financial health.
4
Q
What does growth measure?
A
The increase in revenue or market presence over a specific period.
5
Q
What can affect growth?
A
Market trends, competitive landscape, and operational efficiency.
6
Q
What can growth affect?
A
Long-term sustainability, investor confidence, and resource allocation.
7
Q
What does ROI measure?
A
The profitability of an investment relative to its cost
8
Q
What can ROI affect?
A
Investment decisions, market conditions, and operational effectiveness.
9
Q
What can ROI affect?
A
Future investment strategies and stakeholder confidence
10
Q
What does profit measure?
A
The total earnings after all expenses have been deducted from revenues.
11
Q
What can affect profit?
A
Cost management, pricing strategies, and sales volume.
12
Q
What can profit affect?
A
Business viability, shareholder returns, and reinvestment opportunities.
13
Q
What does firm value measure?
A
The overall worth of the company, often assessed through market capitalization or valuation methods.
14
Q
What can affect firm value?
A
Financial performance, market conditions, and investor perceptions.
15
Q
What can firm value affect?
A
Mergers and acquisitions opportunities, investment attractiveness, and employee morale.
16
Q
What do returns measure?
A
The percentage of products returned by customers due to dissatisfaction or defects.
17
Q
What can affect returns?
A
Product quality, customer expectations, and return policies.
18
Q
What can returns affect?
A
Customer satisfaction, brand reputation, and financial performance.
19
Q
What do defects measure?
A
The number or percentage of products that fail to meet quality standards.
20
Q
What can affect defects?
A
Manufacturing processes, quality control measures, and employee training.
21
Q
What do defects affect?
A
Customer trust, operational efficiency, and warranty costs.
22
Q
What do warranty claims measure?
A
The number of claims made by customers for repairs or replacements under warranty.
23
Q
What can warranty claims affect?
A
Profitability, customer satisfaction, and brand loyalty.
23
Q
What can affect warranty claims?
A
Product reliability, customer service quality, and warranty terms.
24
What does waste measure?
The amount of resources or materials that are discarded during production.
25
What can affect waste?
Operational efficiency, production processes, and employee training.
26
What can waste affect?
Cost control, environmental impact, and profit margins.
27
What do new products measure?
The number of new products or services launched within a specific timeframe
28
What can affect new products?
R&D investment, market trends, and employee creativity.
29
What can new products affect?
Market share, customer interest, and revenue growth.
30
What do new approaches measure?
The implementation of new strategies or methods in operations or marketing.
31
What can affect new approaches?
Market demands, technological advancements, and organisational culture.
32
What can new approaches affect?
Efficiency, employee engagement, and customer satisfaction.
33
What does idea generation measure?
The number of new ideas generated for products, services, or
processes over a specific period.
34
What can affect idea generation?
Organisational culture, employee engagement, and innovation programs.
35
What can idea generation affect?
Innovation pipeline, employee morale, and competitive positioning.
36
What does cycle time measure?
The total time taken to complete a process, from initiation to delivery.
37
What can affect cycle time?
Process efficiency, employee productivity, and technology usage.
38
What can cycle time affect?
Customer satisfaction, operational efficiency, and time-to-market for products
39
What does unique reputation affect?
The perception of the brand in the market, often assessed through surveys and brand studies.
40
What can affect unique reputation?
Quality of products, customer service, and marketing efforts.
41
What can unique reputation affect?
Customer loyalty, market share, and pricing power
42
What does superior comparative performance measure?
How well the company performs against competitors in key areas such as quality, price, and service.
43
What can affect superior comparative advantage?
Competitive strategies, market positioning, and operational efficiencies.
44
What can superior comparative advantage affect?
- Market share
- Brand reputation
- Customer retention.
45
What does market share measure?
The percentage of total sales in a market captured by the company.
46
What can affect market share?
Customer satisfaction, competitive pricing, and marketing effectiveness.
47
What can market share affect?
Revenue growth, brand recognition, and competitive positioning.
48
What does share of wallet measure?
The percentage of a customer’s total spending within a category that is captured by the company
49
What can affect the share of wallet?
Customer loyalty, product range, and pricing strategies.
50
What can share of wallet affect?
Revenue potential, customer relationships, and overall profitability.
51
What does churn measure?
The rate at which customers stop doing business with the company.
52
What can affect churn?
Customer satisfaction, competitive offerings, and service quality.
53
What can churn affect?
Revenue stability, marketing strategies, and customer acquisition costs.
54
What does net promoter score measure?
The likelihood that customers would recommend the company’s products or services to others.
55
What can affect net promoter score?
Customer experience, product quality, and service levels.
56
What does net promoter score affect?
Customer loyalty, brand reputation, and revenue growth
57
What does turnover measure?
The percentage of employees who leave the company within a specific timeframe.
58
What can affect turnover?
- Job satisfaction
- Company culture
- Compensation.
59
What can turnover affect?
- Recruitment costs
- Team dynamics
- Overall productivity
60
What do applications measure?
The number of job applications received for open positions, indicating interest in the company as an employer.
61
What can affect applications?
- Employer branding
- Company reputation
- Job market
conditions.
62
What can applications affect?
- Talent acquisition strategies
- Workforce diversity
- Organizational culture.
63
What does productivity measure?
The output of employees relative to the inputs used (e.g., hours worked).
64
What can affect productivity?
- Employee engagement
- Resource availability
- Operational processes.
65
What can productivity affect?
- Financial performance
- Operational efficiency
- Employee morale.
66
What are the components of the Diamond-E? And what are the aspects of each?
Management Preferences
● Vision - of the company's future
● Mission
● Preferences and Biases - risky or not?
Organization
● Culture - who are we?
● Capabilities - what are we good at?
● Structure - how do we divide work?
Resources
● Human - employees
● Capital - includes intangibles like patents and reputation
● Financial
Strategy
● The linking component of Diamond-E
● Method companies use to respond to threats/opportunities and achieve KSFs
Environment
● General environment
○ PEST - Political, economic, social, technological factors in the world.
● Specific Environment
○ Industry specific - analyse using Porter’s 5 forces
67
How does strategy connect to environment?
Changes in the environment will alter
company strategies depending on
opportunities/ threats.
68
How does strategy connect to resources?
Resources available will influence
which strategy is feasible
69
How does strategy connect to organization?
What the company is good at and
the structure will influence which strategies are available to use.
70
How does strategy connect to management preferences?
Management decides which
strategy will be used based on their preferences, vision, and mission.
71
How does resources connect to strategy?
Different strategies may require additional
resources.
72
How does resources connect to the environment?
Shifting environments can change what resources are available and what resources are required
73
How does resources connect to organization?
Organisation determines the capabilities of the company, resources must follow in suit.
74
How does resources connect to management preferences?
Management decides what resources the
company should acquire.
75
How does organization connect to strategy?
Strategy can influence who the company is and how the company divides work.
76
How does organization connect to the environment?
Environments can cause a shift in the structure of a company, its culture, and what the company should be good at.
77
How does organization connect to resources?
Resources available make up how the company is structured.
78
How does organization connect to management preferences?
Management decides the culture, capabilities, and structure of the company.
79
What is the principal logic?
- Consistency
- Alignment
● Internal consistency = good execution of strategy
● External alignment = right strategy for environment
80
What are the four segments of Porters Generic Strategies and their definitions? Also provide a company example for each one.
- Cost leadership (Walmart)
● Achieve lowest cost of production across a broad market
- Cost focus (Dollarama)
● Be the lowest-cost producer in a narrow market or niche
- Differentiation (Apple)
● Offer unique products that are perceived to have more value across a broad market.
- Differentiation focus (Ferrari)
● Offer unique products to a niche market
81
What are the strengths of each position to be suitable for a company?
● Cost Leadership - Suited for firms with operational efficiencies, access to cost effective
production inputs, and economies of scale. Large firms with greater capital and market
share are better equipped to pursue this strategy.
● Cost Focus - Smaller firms can adopt this strategy to target niche markets where large
players cannot compete efficiently due to their broader market strategies.
● Differentiation - Larger firms with strong R&D, innovation, or branding are more likely
to succeed using this strategy.
● Differentiation Focus - Smaller firms with deeper levels of expertise in a specific niche
and strong customer relations can pursue this strategy. Also excellent for firms that
innovate within specialised market segments.
82
What positioning do large firms take?
Larger firms tend to use Cost Leadership and Differentiation due to their access to
resources, scalability, and ability to invest into broad market approaches.
83
What positioning do small firms take?
Smaller firms tend to use Cost Focus and Differentiation Focus since they can tailor their offerings and specialize in a specific niche market more efficiently than larger
companies. They also just cannot compete with large companies in terms of costs, so they are pushed into using these strategies.
84
What are the 4 components of PEST?
- Political
- Economic
- Social
- Technology
85
What are the elements of Political - and what impact does it have on EST?
- Laws
- Regulations
- International trade laws and trade agreements
- Political risks.
○ Economic - tax change can affect consumer purchasing power.
○ Social - immigration policies influence workplace demographics.
○ Technology - government funding for research.
86
What are the elements of Economic - and what impact does it have on PST?
- GDP
- Inflation
- Employment
- Exchange
- Interest.
○ Political - government might intervene in weak economies.
○ Social - high unemployment leads to social unrest.
○ Technology - recessions can limit R&D spending.
87
What are the elements of Social - and what impact does it have on PET?
- Values/attitudes
- Customs
- Habits
- Demographics
○ Political - gender equality movements drive for new workplace laws.
○ Economic - changes in consumer behaviour drive up market demand.
○ Technological - demand for connected devices.
88
What are the elements of Technology - and what impact does it have on PES?
- Information technology
- Internet
- Materials & equipment.
○ Political - influence laws around privacy and data protection.
○ Economic - improving productivity through automation, unemployment.
○ Social - rise of social media.
BU111
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