An assessment of how different sources of business/internal and contextual/external data should be considered and used when planning. for example, internal information within the organization including HR metrics, industry information e.g., trends in HR, competitive information, and government information. Assessment criterion: 3.2: assess and utilize different

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Internal data and contextual/external data are that which give insight into the environment in which an organization operates

Internal data

HR metrics, financial information, and operational data are examples of internal data within an organization. HR metrics, for example, can provide information about an organization’s human capital, such as employee satisfaction, turnover rates, and levels of productivity. This data can be used to pinpoint areas for improvement as well as to evaluate the success of HR initiatives. Financial data, such as sales and revenue figures, can be used to evaluate an organization’s financial performance and formulate financial budgets and plans. Data on company operations, for example, can be used to pinpoint areas for improvement and to track operational efficiency (St-Hilaire,2022).

Industry information

Information such as HR and economic trends can also be useful in planning. Tracking trends in HR, for example, can provide information on current best practices and new advancements in the field. This data can be used to focus on areas where the organization can set itself apart from its rivals and gain a competitive edge. Economic indicators such as unemployment and inflation rates can also be tracked by the organization in order to assess the broader economic environment and identify potential dangers and opportunities (St-Hilaire,2022).

Competitive information.

This data may include information on competitor strategies, the share of the market, and consumer feedback. Organizations, for example, can use customer reviews to continually improve their own products and services, as well as to improve their knowledge of customer needs and desires. Organizations can also use data on competitor techniques to assess their competitors’ strengths and weaknesses and to identify areas where their own methods can be improved (St-Hilaire, 2022).

Government data

Regulations and laws can also be useful in planning. Changes in government laws and regulations, for example, can have an effect on the organization’s operations and strategies, so staying notified of these modifications and ensuring compliance with relevant regulations and policies is critical. Changes in tax policies or economic incentives, for example, can be used to identify potential dangers and opportunities in the macro environment using government data.

For instance, a company that prepares fast food can use internal data, such as production data, to evaluate the effectiveness of their operations, industry data, such as trends in environmental sustainability, to pinpoint areas for enhancement in their products and services, competitive information, such as data on competing companies, to assess their competitive market, and government information, such as hazardous environmental regulations, to guarantee that their products are safe (St-Hilaire,2022).

References

St-Hilaire, W. A. (2022). Value-based Management in an Open Economy: Optimizing Strategy to Improve Business and Performance. CRC Press.

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