Productivity and Profitability Decisions and Information Requirements

Abstract

Chapter 7 concluded with an overview of the productivity and profitability process. A summary of the main components of the process is: identifying customer expectations and potential response options; appraising corporate performance expectations for strategic and operational productivity and profitability; identifying the performance criteria for strategic and operational productivity and profitability; and setting objectives for customer and corporate responses. We continue with these issues in this chapter. In Figure 8.1 we introduce the decision flow process whereby corporate response to customer expectations is examined and during which the issues of competitors’ activities and responses are considered, together with other external influences such as technological development (a major concern for productivity decisions) and social and economic trends (both of which have a strong influence on shaping customer expectations). Given that these are important and within the decision-making process are assumed to be so, they will be reflected in both the response options and in the corporate expectations emerging at this stage of the process.KeywordsCorporate ResponseCustomer ExpectationDiscount Cash FlowAsset BaseDecision AreaThese keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.