BU111 Study Guide - Midterm Guide: Cash Flow, Voice Of The Customer

• School: WLU
• Department: Business
• Course: BU111
• Professor: Brandon Van Dam

Document Summary

Achieving financial performance: (cid:862)a(cid:272)hie(cid:448)e(cid:373)e(cid:374)t of positi(cid:448)e (cid:272)ash flo(cid:449) a(cid:374)d p(cid:396)ofita(cid:271)ilit(cid:455)(cid:863, younger organizations are expected to have negative cash flow and be unprofitable, older organizations, whether large or small, typically have achieved profitability and positive cash flows. I(cid:374)(cid:448)esto(cid:396)s a(cid:374)d (cid:373)a(cid:374)age(cid:396)s (cid:449)ill (cid:271)e (cid:272)o(cid:373)pa(cid:396)i(cid:374)g the o(cid:396)ga(cid:374)izatio(cid:374)"s fi(cid:374)a(cid:374)(cid:272)ial pe(cid:396)fo(cid:396)(cid:373)a(cid:374)(cid:272)e against similarly-sized firms in the same industry and will want to see that the fi(cid:396)(cid:373)"s p(cid:396)ofita(cid:271)ilit(cid:455) a(cid:374)d (cid:272)ash flo(cid:449)s a(cid:396)e si(cid:373)ila(cid:396) if (cid:374)ot (cid:271)ette(cid:396) tha(cid:374) (cid:272)o(cid:373)peti(cid:374)g fi(cid:396)(cid:373)s". Important because customers make up majority of revenue. Involves understanding what customers want in the current products and services you offer: also involves anticipating future need and identifying needs the customers want but have not yet expressed. If customer needs are not met, they could stray to the competition. Encouraging innovation and creativity: (cid:862)the a(cid:271)ilit(cid:455) to ide(cid:374)tif(cid:455) a(cid:374)d i(cid:373)ple(cid:373)e(cid:374)t (cid:374)e(cid:449) a(cid:374)d i(cid:373)p(cid:396)o(cid:448)ed (cid:449)a(cid:455)s to e(cid:454)e(cid:272)ute a(cid:374)(cid:455) of the o(cid:396)ga(cid:374)izatio(cid:374)"s a(cid:272)ti(cid:448)ities(cid:863)