overall performance

• Strategic concerns


  The general direction of an organisation, must be detailed/organised, involves moving into new areas, functional, objectives are based on this
• Functional concerns


  Specific functional areas, usually made at middle management level
• Strategy


  What is going to be done, common term, commitment of resources, senior manager
• Tactics


  How the strategy will be carried out, short-term, less commitment, can be changed, junior manager
• External environment


  • Political
  • Legal
  • Economic
  • Social
  • Technological
  • Environmental
  • Competition
  • State of the economy
• Internal environment


  • Ethics
  • Social responsibility
  • Resources available
  • Size of the business
  • Leadership style
• Mission


  The overall aims of a business, the reason for its existence
• Short-termism


  Having a focus on generating profits to benefit the shareholders through dividends but won't necessarily help the business in the long term
• Ownership


  The form of the business, the influence of shareholders, for profit or not, values of the leader, organisational culture of the business
• Balanced Scorecard perspectives


  • Customer
  • Financial
  • Internal Business Processes
  • Learning and Growth
• Balanced Scorecard


  • Specific targets can be monitored, acts as a motivator for employees, links to objectives
• Balanced Scorecard


  • Excessive targets can become too confusing, difficult to balance all four perspectives
• Tesco abandoned the Balanced Scorecard model after 20 years because of the weaknesses
• Learning and Growth


  Employee development, labour retention, staff training, changing the organisational design, how can the business grow to improve
• Internal Business Processes


  Efficiency, capacity utilisation, unit costs, productivity, new technology, how can processes be improved
• SWOT Analysis


  A model that allows a business to assess its overall position through an internal and external audit
• SWOT Analysis


  • Aims to maximise strengths, minimise weaknesses, take advantage of opportunities and avoid threats
• Internal strengths and weaknesses

  Can be influenced by the business (e.g. reputation, location, size, price, quality)
• External opportunities and threats

  Beyond the control of the business, so they must understand how to react to them in the best way (e.g. competition, PESTLE)
• Triple Bottom Line (TBL)


  A way of assessing the overall performance of a business through three factors: Profit, People, Planet
• Triple Bottom Line (TBL)


  • Promotes sustainable development where financial performance is balanced with impact on people and the planet
• Triple Bottom Line (TBL) factors

  • Profit: financial and economic value of the company
  • People: social values, how employees and the local community are treated
  • Planet: environmental values and attitudes towards sustainability