3.7.3 Analysing the existing internal position of a business to assess strengths and weaknesses

What does the term ‘Core competencies’ mean?

unique qualities that a business posess that gives them competitive edge (e.g creativity, brand reputation, loyal repeat customers)

Why are ‘Core competencies’ important?

• they’re hard for other businesses to copy

• important for long-term success as they maintain novelty (not going old)

Why should a business assess it’s Core competencies?

• helps identify strengths and weaknesses

• ensure resources are used on areas that add the most value

What is ‘Short-term performance’?

performance over a short period (weeks,month or a year)

How is ‘Short-term performance assessed’?

• financial metrics

• operational efficiency 

What are financial metrics?

numbers that help quantify the success of a business

What is operational efficiency?

how efficiently objectives are completed

What is ‘Long-term performance’?

performance over several years

How is ‘Long-term performance’ assessed?

• brand loyalty and reputation

• employee retention

• social and environmental impact

• sustained competitive advantage

What is ‘Benchmarking’ and why is it used?

comparing business to their competitiors to identify weaknesses and ways to improve

Name 3 types of operations data used to assess performance

• productivity

• capacity utilisation

• inventory turnover

Which HR metrics can indicate business performance?

• employee turnover

• absenteeism

• staff retention

• training hours

• employee satisfaction

• motivation levels.

Name 3 marketing metrics that may help assess business performance

• market share

• customer satisfaction

• number of complaints

• brand recognition

• customer loyalty

What are KPIs?

Key performance indicators - financial and non-financial metrics e.g operation, HR, marketing

How are KPIs used?

help monitor strengths, weaknesses, and overall performance.

What is the Elkington’s Triple Bottom Line?

• Profit

• People

• Planet

How is Elkington’s Triple Bottom Line used?

it encourages long term performance by using impact to quantify success over short-term profit

Why is non-financial data important?

• shows success beyond finances

• supports long-term strategy by measuring employee, customer, and operational performance.

Name 3 examples of non-financial data

• employee turnover

• customer satisfaction

• capacity utilisation

What are the limitations of non-financial performance measures?

• can be subjective (e.g., employee satisfaction surveys)

• hard to compare if businesses measure these values differently