You are a researcher for a business consultancy. The CEO has identified an opportunity to produce and market a generic report (‘working title’ as above) targeted at a variety of organisations, private, public and VCS, which would help them to understand the different levels of their own environment, and also the methods and impact of changes within this environment. You have been given the task of researching a major part of this new product offering. You should collate your material into a report to be submitted to the CEO.
An overview of two evaluation and decision making tools used by organisations to assess their own performance.
One example of two mutually beneficial and complimentary evaluation and decision making tools are the SWOT analysis and TOWS framework. The SWOT analysis is a tool used by management and organisations that evaluates "an organization 's internal strengths and weaknesses as well as its environmental opportunities and threats" (Griffin, 2011: 68). It is the results and conclusions drawn from a SWOT analysis that allow management to formulate a TOWS matrix that helps with future decision making. After evaluating the strengths, weaknesses, opportunities and threats evident in an organisations task and macro environments, management can combine said findings into a TOWS framework that helps decide and evaluate future strategic direction and choices.
A second evaluation and decision making tool used by organisations to assess their own performance is the idea of 'strategic cost management '; the process of "making decisions concerning specific cost drivers within the context of an organization’s business strategy" (Weygandt et. al, 2009: 7). Strategic cost management can be broken down into strategic position analysis, cost driver analysis and value chain analysis (Weygandt et. al, 2009). The use of strategic
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