Section Eight • Internal Analysis - Analysing Overall Performance Flashcards
What are examples of non financial data?
3 bullets
- Marketing
- HR
- Operations
What are examples of non financial data from marketing?
2 bullets
- Calculations of market share, market growth and sales growth
- Portfolio analysis- the products a company has, what stage they’re at in their life cycle and their perceived and actual quality.
What are examples of non financial data from HR?
2 bullets
- Calculations of labour productivity, labour turnover, labour retention, employee costs as a percentage of turnover and labour cost per unit.
- An assessment of staff skills and qualifications, as well as HR plans for training and recruitment - to see if these are matched to the needs of the business. Staff morale and methods of motivation may also be assessed.
What are examples of operations data?
- Calculations of capacity and capacity utilisation, unit costs and fixed/variable costs.
- The age and condition of any machinery, the operations processes used, etc.
What is benchmarking?
Looking at successful businesses and identifying what they do well, then trying to apply their strategies to your business.
What are Core Competences?
Core competences are the capabilities of a business that are unique to that business and give it a competitive advantage over its rivals.
They are capabilities that rivals do not have.
What counts as a core competence?
They can be any feature that makes a business different - a specific piece of technology that allows a firm to produce items in a different way, specialist staff training, an innovative production process, an understanding of their customer base, etc. They can also be a combination of different features, or the way they work together.
Why are core competences fundamental to business success?
Core competences are fundamental to the success of the business and should allow the business to compete in different areas. For example, WeightWatchers® started off as meetings and support groups - this understanding of how support helped people lose weight allowed the business to expand into food products, recipe books, magazines and even electronic items.
