May 28, 2022

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WHAT IS EFFECTIVENESS IN BUSINESS MANAGEMENT

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EFFECTIVENESS IN BUSINESS MANAGEMENT



Effectiveness in business management is the ability of a business owner or management to get things done correctly and in a manner that the business objective(s) is/are attained.

The primary objective of all businesses is profit. Effectiveness means that the business achieve this objective no matter the cost involve.

For example, if a business deal with consultancy and selling of shares; and the management decides to focus more on shares while not many persons are interested in buying shares, but on consultancy, then, it can be said that the business management lacks effectiveness.

No matter how cost efficient a particular line of business will be, if consumers are shifting taste from it, such a business is no longer effective and the primary objective of the business will not be attained.

For a business to be effective, business owners and managers must carry out research on it.

The following questions must also be confirmed.

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1. Will this product or service worth the effort?

2. Is this product or service meet the needs of the society?

3. Is customer’s satisfaction, my number one priority?

In an effort to be efficient, it is vital for small businesses to consider effectiveness also.

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