BU111 Lecture Notes - Lecture 1: Critical Success Factor, Cash Flow, Voice Of The Customer
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BU111 Full Course Notes
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Document Summary
6 critical success factors: strategy, mission, vision, achieving financial performance. Financial performance is defined as the achievement of positive cash flow and profitability. Financial performance is important because firms need cash flow to pay for day-to-day operations and expand as a business as well as generate revenues to keep expenses low: meeting customer needs. Firms must please the customers to continue making profits and once a firm develops a customer trust sales will increase: building quality products & services. Customer"s recognize you get what you pay for" - getting fair value for what they pay for. Producing quality products/services builds reputation, goodwill, and loyalty and attracts new customers: encouraging innovation & creativity. Innovation and creativity leads to new designs and improvements of products being sold and allow new opportunities to be created. Business environment is always chaining so innovation/creativity is needed. New strategies can generate more revenue: gaining employee commitment.
