Question

Define Key Success Factors for a business and give examples? 2 paragraphs

Define Key Success Factors for a business and give examples? 2 paragraphs

Homework Answers

Answer #1

Key Success Factors are the combination of important factors which are essential to achieve certain business goals. There are some factors which help in suceess of business. These are:-

  1. Effective leadership - For a successful business an effective leader is really needed. Leaders must have the power to motivate the employees to give their best. Example - IBM encourages employees for corporate blogging. The leader simply shows the objective of the company to help the employees understand the goal.
  2. Product improvement - If the company donot improvise the product or services they are providing, then customers will not show interest in them. For a successful business, a company must provide a good quality product or sevice with nice aesthetics or proper price of the products, with durability and reliability etc. Example - Starbucks, focus on quality of the products and customer service. Customers gets attracted to it because of the impressive quality products they are serving.
  3. Cash flow management - One of the important factors for succession of the business is to have proper finacial records. Keeping record of cash flows or profits is necessary. The finance department must keep a good communication with the investors and lenders so in case the company needs any finance then they can get help from investors. Example - Accenture plc has a total of $ 56,708.6 billion market price. The company keeps a close record on the profit and loss.
  4. Retain the customers - The company is said to be successful if it can retain the customers by launching new and attractive products. In this way they can also gain many loyal customers. If a company fail to develop creative products of its customers then it is impossible to get success in that business. Example - Coco-Cola has been able to grow its brand by acquiring multiple other drinks, such as Honest Tea, Glaceau Smartwater, Fresca and Powerade Zero. Also recognized for its unique marketing campaigns, Coca-Cola has made a global impact with its customer engagement.
  5. Time Management - By working on the concept of one-work-at-a-time and minimising the distractions will increase the production rate with efficiency which in return will save a lot of time. Example - Mckinsey is widely famous for the time management skills. They donot waste time on distractions, the employees learn quickly which saves a lot of time.
  6. Maintaining good customer relations - Customers are the main assets for any company. So for a succesful business companies must provide good quality products which can fulfill the customer's needs and demand. By increasing quality services to the customer company can gain a good relationship with the customers. Example - Amazon's main motive is to serve the customer with best products as well as a quality services. They also promises customer with one day delivery in case of urgency. Their shipping management is really impressive.
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