In order to identify possible CSFs, we must examine the mission and objectives and

see which areas of the business need attention so that they can be achieved. We can
start by brainstorming what the Critical Success Factors might be these are the
!Candidate! CSFs."
Objective Candidate Critical Success Factors
Gain market share locally of 25%
Increase competitiveness versus other
local stores
Attract new customers
Achieve fresh supplies of farm to customer in 24
hours for 75% of products
ustain successful relationships with
local suppliers! develop online and
o"ine service
ustain a customer satisfaction rate of #$%
%etain sta& and customer focused
trainin'! maintain (uality! make it less
price sensitive compare to competitors!
communication! service! after sales
service
)*pand product ran'e to attract more customers
%+,! innovation throu'h % + ,! tacit
skills
)*pand in 'lo-al market
ecure .nancin' for e*pansion
ac(uisition! /oint venture or mer'ers
#rovides values though different channel $irect selling, relationship or third
%eduction environment pollution carbon footprint, recycling
&ross #rofit'Sales ( &ross #rofit )argin
The gross margin is not an exact estimate of the company's pricing strategy
but it does give a good indication of financial health. Without an adequate
gross margin, a company will be unable to pay its operating and other
expenses and build for the future. In general, a company's gross profit
margin should be stable. It should not fluctuate much from one period to
another, unless the industry it is in has been undergoing drastic changes
which will affect the costs of goods sold or pricing policies.
0et 1ar'in2
Most publicly traded companies will report their net margins both quarterly
during earnings releases! and in their annual reports. "ompanies that are
able to expand their net margins over time will generally be rewarded with
share price growth, as it leads directly to higher levels of profitability.
%34)
#$"% is a useful metric for comparing profitability across companies based
on the amount of capital they use. #$"% is especially useful when comparing
the performance of companies in capital&intensive sectors such as utilities
and telecoms. This is because unli'e return on equity #$%!, which only
analy(es profitability related to a company fs common equity, #$"%
considers debt and other liabilities as well. This provides a better indication of
financial performance for companies with significant debt.
Operating cost
The operating expense ratio is a useful tool when comparing the expenses of
similar properties. If a particular piece of property has a much higher $%# for
a particular expense, such as maintenance, an investor should see that as a
red flag and should loo' deeper into why maintenance expenses are so much
higher than comparable properties.
Working capital growth
On the one hand, working capital is always significant. This is
especially true from the lender's or creditor's perspective, company
meet its short&term obligations, such as paying vendor bills) if current
assets are less than current liabilities, an entity has a working capital
defciency, also called a working capital defcit.
Current ratio
The ratio is mainly used to give an idea of the company's ability to
pay back its short-term liabilities debt and payables! with its short-
term assets cash, inventory, receivables!. The higher the current
ratio, the more capable the company is of paying its obligations. "
ratio under # suggests that the company would be unable to pay off
its obligations if they came due at that point. While this shows the
company is not in good financial health, it does not necessarily mean
that it will go bankrupt - as there are many ways to access financing
- but it is definitely not a good sign.
*uic' #atio'
$uick ratio % current assets & inventories! ' current liabilities
"n indicator of a company fs short-term li(uidity. The (uick ratio is
more conservative than the current ratio because it e)cludes
inventories from current assets. The ratio derives its name
presumably from the fact that assets such as cash and marketable
securities are (uick sources of cash. *nventories generally take time
to be converted into cash, and if they have to be sold (uickly, the
company may have to accept a lower price than book value of these
inventories. "s a result, they are +ustifiably e)cluded from assets that
are ready sources of immediate cash.
,ebt to -(uity
+ high debt,equity ratio generally means that a company has been
aggressive in financing its growth with debt. This can result in volatile
earnings as a result of the additional interest expense. This can lead to
ban'ruptcy, which would leave shareholders with nothing.
.ales growh rate/!
a company to increase outstanding stoc' and spread mar'et capitali(ation
the company's value! over a greater number of shares.
VVVVV VVVVV
56 primary activities
in-ound lo'istics7
like other -i' laptop and desktop suppliers raw materials
receivin' from suppliers6
3perations7
lenovo 3)1 partners are mainly 8istron! 9uanta and compal
three who developed the model of ideapad! thinkpad! and tin
yat6
3ut-ound lo'istics7
lenovo online! o:ine sales and 3)1 partners provides
out-ound lo'istic or distri-ute channel6
1arketin' and sales
marketin' of the company is very key elements as sales
depends on it6 It persuade customer to -uy it6 ;enovo mo-ile
device smartphone and ta-let came out to adapt the new
environment6
ervice
lenovo deliver the product with relia-ility and provide
warrenty! protection! and after sales service6 ;enovo
maintain the (uality and reach the service no matter where
the customer are6 ;enovo di&erentiation and cost leadership
increase the demand of the service contineously6
V. upport activities
<rocurement
,rive (uality improvement from our suppliers of 'oods
and services
deliver lowest overall cost and 'reatest competitive
advanta'e
improve client perception of our values throu'h
increased in:uence and e*ample like customer service
and support6
=echnolo'ical development
innovate products to in:uence customers6
>%1
this is the techni(ue of employment mana'ement that can
motivate employee to 'ain knowled'e and use e*perience!
trainin' knowled'e to produce re'ular products and innovate
procts6 Also com-ination of employment policies! pro'rams
and practice6
?irm infrustructure
lenovo has consistently out'rown the world wide pc market
in unit shipments and 'ained market share across all
'eo'raphic! products and customer se'ement! makin' it
fastest 'rowin' <c company in the world6