Evaluating with Criteria Flashcards
What are the four key criteria used to evaluate business strategies?
A: Competitiveness, Effectiveness, Efficiency, and Stakeholder Satisfaction.
How does competitiveness affect a business’s success?
It determines how well a business performs against its rivals in terms of price, quality, and innovation.
What is the difference between efficiency and effectiveness?
A: Efficiency is about minimizing costs while maximizing output, whereas effectiveness focuses on achieving business goals.
How can businesses measure stakeholder satisfaction?
Through customer surveys, employee feedback, investor confidence, and supplier relationships.
Why is financial performance a key evaluation tool?
It helps assess profitability, liquidity, and long-term sustainability.
What is benchmarking, and why is it important?
Benchmarking compares a business’s performance against industry standards to identify areas for improvement.
How does customer loyalty impact competitiveness?
A loyal customer base ensures steady revenue and reduces reliance on advertising.
Why is evaluating legal compliance important in business?
A: To avoid fines, lawsuits, and reputational damage.
How can businesses improve efficiency without sacrificing quality?
A: By investing in automation, employee training, and lean management techniques.
What role do sustainability and ethics play in stakeholder satisfaction?
A: Ethical practices and sustainable initiatives enhance brand reputation and customer trust.
