Measuring Performance Essay Example | Topics and Well Written Essays - 2500 words

Measuring Performance - Essay ExampleIt comprises of Strengths, weaknesses, Opportunities and threats. Strengths are internal factors that screwing be concluded as advantages to the furrow (current advantages). Factors such as a focused management, hardworking employees, low costs are positive points for the firm. For Jengo Ltd, a spirited regard for their clothes by the customers is an impressive point for the future of the business. Weaknesses are internal factors as well that maybe termed as disadvantages for the firm (current disadvantages). Negative factors deal a poorly trained workforce, ageing equipment etc need to be evaluated for a solution to arise. For Jengo Ltd, the failure to produce budgets or forecasts for the financial year hints weak prep on the part of the management. However, Opportunities are potential areas for expansion of the business (advantages that can arise in the future). These areas are obtained after an external audit in the marketplace the firm o perates in. Identifying new markets, expansion of the product portfolio and favorable government policies amalgamates in outdoing competitors. Moreover, threats are not to be forgotten while forecasting future business plans (problems that may arise in the future). These usually comprise of the macro environment factors that alter the economic environment, strength of the competition, globalization etc. Jengo Ltd should be careful near changing customer demands as it operates in a highly uncertain business. SWOT analysis draws the primary sketch for foreseeing the future for any business. It is an returnive direction of gathering information and generating interest in the business activities quickly, mostly used to plan the marketing strategy (Hall, D et al. 2004) Factors in the macro environment effect closings by the top management. Demographic change, government laws, trade barriers etc are some examples of macro change (Varoufakis, Y. 2007). These factors can be categorized by the PESTEL (political, economic, tender, technological, environmental, and legal factors). governmental developments regionally, nationally and internationally might effect a businesss strategy. Political decisions can change vital areas of the company such as fosterage for the employees, health benefits, infrastructure, and subsidies for instance. Economic factors may involve the effect of consumer demand patterns, willingness to spend, inflation, fiscal and monetary policies, exchange rates, fixed and variable costs, and changes in the labour market on the business. Businesses may also need to plan out the effects of government policies to haul out the country from a recession (Hall, D et al. 2004). Changes in social trends can create competitive advantages for businesses. Falling birth rate, ageing population, increase in life expectancy can all effect a business. An ageing population would mean a shift in the sort of products demanded and more pensions paid to employees. P ressure groups can also force a business decision leading to serious consequences. Technology uplifts products and processes. Online shopping, bar coding, CAD and CAM are all technological advancements that aid in the advent of superior products. Furthermore, environmental factors might acknowledge a legislation to control pollution or views of certain groups about the ingredients of the product. Major climatic changes due to global warming have significantly wedge many industries and external factors related to a