BU111 Study Guide - Midterm Guide: Profit Maximization, Cash Flow, Voice Of The Customer
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BU111 Full Course Notes
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Document Summary
Achievement of positive cash flow and profit maximization. Dependant on life stage of organizations as well as the whole industry. Importance: needs to have financial resources to continue running and expanding, continuous growth. Must understand what customers wants are currently and anticipating wants that customers may have in the future. Importance: if you do not meet customer needs/wants than they will go to someone who will and will not attract new customers: meeting customer needs, building quality products and services. Does not mean producing the best quality out there. Customers have the get what you pay for mentality, therefore they are willing to sacrifice some of the quality of the product for a cheaper cost. Importance: builds loyalty, goodwill, and a reputation that retains existing customers and is likely to attract new ones: encouraging innovation and creativity. Ability to identify and implement new and improved ways to execute: creating a distinctive competitive advantage.
