This blog aims at equipping individuals with business and finance tools in simplistic terms. It convers both business finance and personal finance. It also looks at the actions that can help you run a business successfully. It has some juicy flavour in it. It also aims at getting individuals closer to Allah (SWT) Enjoy!
Search This Blog
Measuring efficiency and effectiveness in business
Image courtesy of Stuart Miles at FreeDigitalPhotos.net
Hello readers, we commonly hear sentences like we have to be effective and efficient in business. Today I will be writing about ways to measure effectiveness and efficiency. Most of us know what efficiency and effectiveness mean but anyway I will still define them.
A business is said to be effective when the established goals and objectives of the company are achieved. Thus, effectiveness is said to be achieved when an individual meets its organizational target. While efficiency deals with your ability to use the resources available to the maximum.
Effectiveness measures the achievement of objectives, thus we can measure effectiveness using a quantitative key performance indicator that are tailored to measure your objectives. For example if a business decides to provide excellent customer service, the amount of customer compliants can give you an ideal of how satisfied your customers are. Another example will be an objective to increase production. Comparing the number of units produced last year to the number of unit produced next year will let you know if production has increased.
Efficiency on the other hand measures maximum utilization of resources. Quantitative attributes such as the cost used for production or production time will help measure efficiency. Basically you figure out a quantitative attribute to measure your efficiency. Keep checking out my blog regularly. Cheers!
Hello readers, today I will be writing about buyers behaviour when it comes to purchasing products (goods and services). I hope your week has been good. A buyer is an individual that makes a purchase. That purchase can be influenced by his/her emotions or his/her rational mind.
For your marketing strategy to be successful you have to truly understand the buying behaviour of your customers. Some customers buy goods based on trust and loyalty which falls into the emotional reasons. Thus, you have to build trust between your customers and yourself so they can return back to you. Trust is built when you offer good quality for reasonable prices.
Some products are bought regularly while some products are purchased seasonally. If your products fall into the seasonal category, you should only purchase them to be resold during that season. At times buyers purchase products on behalf of another individual. In that situation, you have to capture the mind of both the buyer and the actual person tha…