Performance Objectives Design of a Company
Step 1:
Performance objectives of a company refer to its driving motives in the provision of goods or services to the intended customers (Haberberg & Rieple, 2008). These objectives include: speed, flexibility, dependability, and quality. A business benefits by maximizing the volume of its output, thus benefiting from the economies of scale and reduced cost of production.
Step 2:
Fig. 1: Polar diagram for a Bus Company and a Supermarket
Step 3:
Internal effects of speed to:
i) a supermarket
- Reduces the time between serving different clients to a minimum, boosting sales
- Avoids overcrowding at the counters
- Ensures the immediate availability of goods
ii) A bus company
- Reduces time wastage between stages, ensuring that travellers arrive at their destinations in good time
- Maximizes the profits of the company as it is able to serve many customers at any given time
Internal effects of quality to:
- A supermarket
- Keeps the outlet clean and tidy
- The arrangement is neat and attractive
- Attendants are respective, helpful, and friendly to the customers
- A bus company
- Maintains the vehicle in a clean and tidy state
- The bus timetable is customized to the convenience of the travellers
- The driver and the attendants are respective, helpful, and friendly to the travellers
Internal effects of dependability to:
- A supermarket
- Early opening hours and late closing hours to allow for adequate shopping
- A higher proportion of goods are kept in stock to meet the customer demands
- Availability of amenities and support services such as parking spaces
- High speeds of service to reduce the length of queues in the supermarket
- A bus company
- The bus adheres strictly to the published timetable on arrivals and departures
- Fares remain fairly constant throughout the year
- Seats are always available on the bus for passengers
Internal effects of flexibility to:
- A bus company
- The company will continually explore new routes to reach more customers
- Buses will reach all the marked destinations
- The company will easily reschedule or adjust the timetable according to customer demands
- A supermarket
- The supermarket should be able to introduce new goods as they are manufactured or demanded by the customers
- The retail outlet should be able to adjust the numbers of customers served
- The company should have the ability to acquire out-of-stock goods in a timely manner
The objectives of speed, quality, dependability, and flexibility can help improve the operations of the two companies. Specifically, these objectives can reduce the cost of producing their services. Speed ensures that several customers are attended to within a short time in the supermarket. With regard to the bus company, the buses will ferry more travellers within any given period. The increased number of customers served implies more profits to the companies. Increased volume of sales enables the companies to enjoy the economies of scale (Haberberg & Rieple 2008, p. 87). In the end, the costs of operation and production reduce. Higher quality goods and services attract more customers to the businesses. An increased number of customers imply greater profitability to the companies (Harrison & St. John 2009, p. 102). Similarly, the companies enjoy economies of scale from this objective, which ultimately lowers the costs of production.
Dependability and flexibility attract customers to the services offered. A dependable schedule for instance in the operation of a supermarket means that customers can rely on the entity to get their goods at prescribed times. In the case of the bus company, passengers can be guaranteed of reaching their destinations in good time as they would not miss the bus or delay at the stage. On the other hand, flexibility demonstrates the extent to which the businesses will go to ensure the satisfaction of their clients. In both cases, the businesses will attract more customers, and capitalize on their economies of scale. Overly, the businesses will enjoy reduced costs of production.
List of References
Haberberg, A & Rieple, A 2008, Strategic Management: Theory and Application. Oxford University Press.
Harrison, J & St. John, C, 2009, Foundations in Strategic Management, Fifth Edition. South Western Cengage Learning.