BU111 Chapter Notes - Chapter 1: Main Source, Voice Of The Customer
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BU111 Full Course Notes
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Document Summary
Every firm must be aware of it"s external environment. The goal of an environmental analysis is to determine whether the elements of the business and the environment are a threat or an opportunity. What can limit a firm from achieving success. Depends of the life stage and industry of each firm. Young firms may have negative cashflow while they grow. The firm needs to generate revenue to pay for its operations and future expansions. Consists on offering the demanded good or service. Customer purchases are the main source of revenue. When other firms fill customer needs the firm looses customers. Products must meet in quality the amount of money the customer is giving up for it. Quality products that meet customer needs raise revenue. Customer loyalty is built upon this and need fulfillment. Ability to identify and implement new and improved ways to execute an activity. Innovation is a way to cope with a changing environment.
