Thursday, May 14, 2020

Gazproms Financial Performance The Differences between Business Efficiency and Effectiveness Free Essay Example, 1750 words

Business efficiency is a concept that refers to reducing the cost of the resources used in the company processes but maintain the quality levels high. The concept primarily relies on the need to reduce the operating costs without interfering with the quality of the production. Therefore, the summary of efficiency is (no time wastage + no resource wastage + high quality of production = business efficiency). On the other hand, business effectiveness is a concept that refers to the ability of a company to use the most appropriate strategies, resources, tools and equipment to ensure the achievement of the goals and objectives. For instance, let us assume that company X produces fresh juice D. The machine that presses the juice out of the fruits is serviced after every four hours of work. The machine's capacity (in terms of the appropriate quantity of fruits pressed at a go) is three ten buckets (Information Resources Management Association, Khosrow-Pour 2001, pp. 38-42). The machine ca n accommodate additional four buckets, but ten is the standard quantity to ensure that the fruits are drained next to dry. We will write a custom essay sample on Gazproms Financial Performance: The Differences between Business Efficiency and Effectiveness or any topic specifically for you Only $17.96 $11.86/page

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