Business Performance: The Four Es Approach
A business manager can think about business performance in various ways. The first one entails the use of the four Es approach. Such an approach is essential since it helps in pursuing business performance evaluation. This model has four elements that consider all critical business factors. Ford, a leading company in the automobile industry, uses such tools to monitor and evaluate the level of organizational performance.
The first element is that of effectiveness, and it examines the extent to which a given firm achieves its goals. For a judgment to be made effectively, the outlined goals need to be clear. Ford follows such an approach to achieve its business aims. The second aspect is that of efficiency, and it describes how well a given organization is capable of transforming its available inputs into outputs. Business firms will become more efficient when the available inputs deliver better outputs. Ford has been performing excellently in this area.
The third factor is that of the economy, and it describes how companies can acquire inputs cheaply and efficiently. Ford has been using this method of production to minimize its production cost. The final factor is that of ethics. The meaning is that all the members and followers in a given company behave in an acceptable manner and follow the outlined moral standards. The company should also receive the relevant approval from the necessary society. For instance, Ford relies on the highest moral and ethical standards whenever dealing with staff members and customers.