1. Identify forces affecting business. Companies today face many new challenges resulting from recent innovations in technology, heightened global competition, and increased customer quality expectations. These forces drive businesses to develop adaptive organizational structures, promote closer stakeholder relationships, restructure core business processes, and foster more responsive work environments.
   
   
2. Define the elements of the customer value imperative. The customer value imperative is an attitude or philosophy that drives a company to create value for its customers by delivering a product or service that meets three key consumer expectations: lower transaction costs, greater customization, and improved service. These customer expectations are critical success factors that must be addressed if a company's strategy is to succeed and its vision to materialize.
   
   
3. Explain the value chain and its components. The value chain describes how a business meets customers' demands. It is composed of five core business processes. (1) Market analysis identifies the preferences and needs of customers. (2) Product development and design involve the creation of the demanded product or service. (3) Sales and marketing are responsible for promoting the product and securing sales. (4) Procurement, production, and distribution encompass the manufacture and delivery of the product. (5) After-sale customer service includes any assistance given to the customer after the product or service has been delivered.
   
   
4. Explain the importance of evaluating company performance. For effective planning to take place, managers must monitor progress toward the established goals and objectives. To do this, they must evaluate financial and nonfinancial performance.