BUSINESS STUDIES
ORGANISATIONAL
PERFORMANCE
THE IMPORTANCE OF CREATIVITY AND PROBLEM SOLVING TO IDENTIFY STRATEGIES
THAT WILL HELP IMPROVE THE PERFORMANCE OF THE BUSINESS
WHAT IS CREATIVITY
❖ Showing imagination/originality as well as routine skill.
❖ Breaking out of established patterns in order to look at things in a different way
➢ thinking out of the box.
❖ Decision making & problem solving amongst many other processes requires creativity as
opposed to traditional methods.
❖ Many techniques/skills can be learnt to enhance creativity.
❖ AIM: So that the business can maintain their competitive advantage to ensure customers
remain satisfied.
PROBLEM SOLVING
PRO’S AND CON’S CHART
Look at arguments both for & against each option and base the decision on the one that has the
highest number (or most convincing) Pro’s or least Con’s.
DECISION TREE
A visual representation (like a flow chart) of different outcomes to a single event or question.
Different options and consequences are considered
1
, VALUE CHAIN ANALYSIS
❖ Adding value for the customer should be the aim
➢ the customer needs to be satisfied so as to keep coming back to purchase.
❖ Manufacturing: Input (Raw materials) +Labour + Overheads = Output (A more valuable
product)
❖ Retailers bring together a range of products & present them in a way that's convenient to
customers
➢ sometimes supported by services such as fitting rooms/personal shopper advice.
❖ Service business: People’s time, skills and knowledge add value here
❖ it is important to look at the business as a whole to decide where the value is actually
added to improve the quality of the product or service and to ensure that the business is
as cost effective as possible.
➢ Internal customers (co-worker and management) & external customers
❖ Doing an activity that is not your core business function means that little or no value is
added.
❖ The value that's created & captured by a company is the profit margin:
➢ Value Created and Captured – Cost of Creating that Value = Margin
❖ The more value an organisation creates, the more profitable it is likely to be.
❖ When you provide more value to your customers, you build competitive advantage.
PORTER'S VALUE CHAIN
PESTLE
P - political/physical
E - economic
S - social
T - technological
L - legal
E - ethical/environmental
2
ORGANISATIONAL
PERFORMANCE
THE IMPORTANCE OF CREATIVITY AND PROBLEM SOLVING TO IDENTIFY STRATEGIES
THAT WILL HELP IMPROVE THE PERFORMANCE OF THE BUSINESS
WHAT IS CREATIVITY
❖ Showing imagination/originality as well as routine skill.
❖ Breaking out of established patterns in order to look at things in a different way
➢ thinking out of the box.
❖ Decision making & problem solving amongst many other processes requires creativity as
opposed to traditional methods.
❖ Many techniques/skills can be learnt to enhance creativity.
❖ AIM: So that the business can maintain their competitive advantage to ensure customers
remain satisfied.
PROBLEM SOLVING
PRO’S AND CON’S CHART
Look at arguments both for & against each option and base the decision on the one that has the
highest number (or most convincing) Pro’s or least Con’s.
DECISION TREE
A visual representation (like a flow chart) of different outcomes to a single event or question.
Different options and consequences are considered
1
, VALUE CHAIN ANALYSIS
❖ Adding value for the customer should be the aim
➢ the customer needs to be satisfied so as to keep coming back to purchase.
❖ Manufacturing: Input (Raw materials) +Labour + Overheads = Output (A more valuable
product)
❖ Retailers bring together a range of products & present them in a way that's convenient to
customers
➢ sometimes supported by services such as fitting rooms/personal shopper advice.
❖ Service business: People’s time, skills and knowledge add value here
❖ it is important to look at the business as a whole to decide where the value is actually
added to improve the quality of the product or service and to ensure that the business is
as cost effective as possible.
➢ Internal customers (co-worker and management) & external customers
❖ Doing an activity that is not your core business function means that little or no value is
added.
❖ The value that's created & captured by a company is the profit margin:
➢ Value Created and Captured – Cost of Creating that Value = Margin
❖ The more value an organisation creates, the more profitable it is likely to be.
❖ When you provide more value to your customers, you build competitive advantage.
PORTER'S VALUE CHAIN
PESTLE
P - political/physical
E - economic
S - social
T - technological
L - legal
E - ethical/environmental
2
