Organisational Performance

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Questions and Answers

Which analysis focuses on understanding external factors impacting a business's performance?

PESTLE Analysis (correct)

Internal Business Analysis

Value Chain Analysis

SWOT Analysis

What is the primary purpose of Value Chain Analysis in a business context?

To enhance customer relationship management

To evaluate competitive advantages in macro environments

To analyze market trends and consumer behavior

To identify efficiencies and areas for cost reduction within operations (correct)

Which analysis tool focuses on internal strengths and weaknesses alongside external opportunities and threats?

Market Analysis

PESTLE Analysis

Business Process Improvement

SWOT Analysis (correct)

Which type of customer interaction is primarily concerned with providing support to customers who use the business's services or products?

External Customers Signup and view all the answers

What is essential for improving business processes according to the need for creative thinking?

Identifying and solving consumer problems Signup and view all the answers

Which strategy focuses on offering products at the lowest cost compared to competitors?

Cost Leadership Strategy Signup and view all the answers

What is the purpose of a SWOT analysis in a business context?

To assess internal factors and external opportunities and threats Signup and view all the answers

Which analysis examines the political, economic, social, technological, legal, and environmental factors impacting a business?

PESTLE Analysis Signup and view all the answers

Which strategy seeks to enhance efficiency or performance within existing processes?

Business Process Improvement Signup and view all the answers

Which of the following best describes internal customers?

Departments or employees within an organization relying on one another’s output Signup and view all the answers

Which of the following is a key component in effective Value Chain Analysis?

Identification of primary and support activities Signup and view all the answers

How do economic factors in PESTLE Analysis primarily impact a business?

By affecting market demand and pricing strategies Signup and view all the answers

Which of these strategies involves acquiring or merging with other businesses at the same level in the value chain?

Horizontal Integration Signup and view all the answers

What are the primary elements that need to be evaluated when considering a new product launch?

Pros and cons, along with resource availability Signup and view all the answers

In a PESTLE analysis, which of the following factors does not belong?

Supplier negotiations Signup and view all the answers

Which analysis focuses specifically on internal and external factors affecting a business?

SWOT Analysis Signup and view all the answers

What is a major advantage of improving business processes?

Enhanced efficiency and productivity Signup and view all the answers

Which of the following represents an external customer factor?

Client satisfaction surveys Signup and view all the answers

Which step is essential after identifying the resource gap during problem-solving?

Obtaining these resources Signup and view all the answers

What does a decision tree primarily help businesses evaluate?

Different paths to a decision Signup and view all the answers

When re-launching an existing product, what is a potential disadvantage?

High advertising costs Signup and view all the answers

Study Notes

Formal Business Strategies

Low Cost Focus/Niche strategy can be implemented by using a corporate combination, forward integration, backward integration, decline/defensive strategy, or a revised business mission.
Differentiation strategy can be implemented by using growth strategy, horizontal integration, TQM (Total Quality Management), benchmarking, financial ratios, appraisals, teamwork skills, or continuous skills development
Other possible generic strategies include allocating resources differently.

Environmental Scanning

Process of collecting information about internal and external factors that could have an impact on the performance of a business.
Used to develop strategies to realign resources and obtain a competitive advantage.
Divided into macro environmental (large-scale factors, e.g., political, economic, social, technological, legal, and environmental) and micro-environmental (smaller scale, e.g., market, customer, competitor, and supplier) aspects.

Creative Thinking and Problem Solving

Creative thinking in this context refers to identifying problems that consumers are unaware of and finding solutions to these problems.
The goal of creative thinking is to get a competitive advantage.
Join-the-dots puzzles can be used to train creative thinking.

Problem Solving Process Steps

Identify the resource gap and obtain the resources needed to achieve the solution.
Explain the impact of the resource gap on the business and consider different solutions.
Choose the best solution and explain it in depth.

Creative Thinking and Problem Solving Techniques

Pros and Cons chart
- Useful for evaluating the potential implications of introducing a new product or re-launching an existing product.
- Consider the potential advantages and disadvantages of each option.
Decision Tree
- A visual representation of a decision-making process, with each branch representing a possible outcome.
- Useful for analyzing complex decisions with multiple factors to consider.

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Description

This quiz covers various formal business strategies, including low-cost focus and differentiation strategies. It also delves into environmental scanning, emphasizing its importance in assessing internal and external factors for competitive advantage. Test your knowledge on strategic planning and resource alignment in business.