BU111 Midterm: BU 111 MIDTERM REVIEW.docx

• School: WLU
• Department: Business
• Course: BU111
• Professor: Roopa Reddy

Document Summary

The relationship between the firm and its external environment. Defined as positive cash flow and profitability. Important b/c organizations needs financial resources to pay for its day to day operation, current projects and expand. Connected to all success factors b/c the impact the efficiency and effectiveness of how the organization functions and therefore its ability to generate revenues or keep expenses low (all other factors lead to financial performance) Important b/c they are the main source of revenue. To meet needs, need to understand what customer wants in current and future products (even if they don"t know it) Unhappy customers will tell others (multiplier effect) Connected b/c customers bring in revenues which leads to profit. Not meeting needs= no customers= no revenue= competitor happy. Producing quality products and services means producing at a level of quality that customers view appropriate for the price paid (fair value for money) Connected because loyal customers bring in more revenue.