Introduction to cost accounting & managerial accounting
Morris Aquaculture Corp.
20th January 2010
Subject: Customer Satisfaction to Improve Business Performance
Businesses succeed because of their level of customer satisfaction. When the needs of the customers are met, the sales of the company go high because the business gains competitive advantage over their competitors. The measures taken to improve the performance of a business are referred to as success factors. They include quality goods and services, timeliness, market research, costs, product development, marketing, individual values and missions and effectiveness. When we refer to quality goods and services, we mean that the products should meet the customer’s needs. In terms of services, the customers should be given priority and the services should be efficient. Timeliness means that products should be availed to customers at the right time (Tracy, 1996). This helps to improve reliability in the eyes of the customers.
Market research helps the business owner to identify potential markets where he can sell his product. In addition, the cost of a product is very important. The entrepreneur should identify the price that his competitors are charging and the price at which the customers are willing to buy. This will help to compare the selling price and the costs incurred so that one can know whether they are making profits or losses. Product development or innovation helps improve the product or increases variety. This will definitely attract customers and hence the sales volume will increase. Finally, when individual workers have values and missions that are combined with the corporate ones, it increases customer satisfaction and hence the level of business performance improves.
Some businesses are related to fish farming. Such includes poultry keeping. They are related because the product that they deal with matures within certain duration and therefore they require a ready market. Therefore, they are required to undertake a through market research to identify potential customers. This will help in boosting the performance of the business. Efficiency should be high and it should not be affected by any measures taken to cut the costs that the business is incurring. Production of aquatic plants can also be compared with fish farming. They should be always availed to the customers when required. In addition, their quality should be always guaranteed. This means that they should be treated using the best chemicals and still maintain the costs in a considerable position. This will ensure that the costs of production are low but the quality of goods produced is high.
There are various ways of measuring the performance of a company. They include the profitability of a company. Profit is given by the difference between sales and the costs incurred by the business (Tracy, 1996). When the profits are high, the business is considered to be performing well. Another measure that can be used is the level of customer satisfaction. This is done by carrying out a customer survey by asking them questions about the business. They are required to comment on the business services and give their opinion on what they would want to be improved. In the poultry and aquatic plants business, customers will comment on the services that are rendered to them. Finally, another measure entails comparison of the business with others in the industry. This will help to evaluate feasibility of a business.
Tracy, B. (1996). Advanced Selling Strategies. New York: Simon & Schuster