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Sir the first thing I am not able to understand is that what I have understood is CSFs are those factors VALUED BY CUSTOMERS and are to be excelled at by the organisation. But also read somewhere that these factors in general are factors which allow an organisation to have good performance.
So any factor which improves performance like motivated staff making reducing costs of organisation wud improve profits but are not something directly valued by customers, be considered as a CSFand is maximising profits within acceptable which seems more like an business objective be considered as a critical success factor
And if so why?So any factor which improves performance like motivated staff allowing reducing costs of organisation wud improve profits but are not something directly valued by customers, be considered as a CSF?*
As a company you will have established objectives. Once these objectives are established you need to identify key factors and processes that will enable you to achieve those objectives.
Critical Success Factors (CSFs) are the key
areas where ‘things must go right’ for you in order to achieve your strategic objectives. The achievements of CSFs will allow you to
cope better than rivals with any changes in the competitive environment and to maximise your performance.This is a ‘textbook’ definition but I would be interested in a ‘shorter but sweeter’ summary from the all knowing, all knowledgable, Ken myself.
Credit: Kaplan P5 textbook.
We have two definitions in our notes:
1 Those product features that are particularly valued by a group of customers, and, therefore, where the organisation must excel to outperform the competition.
2 Where an organisation must perform well if it is to succeed.
Really, these amount to the same thing. Where the organisation must do well can be identified by realising that companies do well only by pleasing their customers.
So airline customers particularly value safety, reliability and economic fares. Successfull airlines will perform well in these areas. As passengers, we might like more leg room and free food, but most airlines have judged that these are not critical to their success (unfortunately).
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