Seri Tanjung Pinang's Three Es Analysis

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In today’s competitive world, it is very important to drive a company around the Three Es theory which is the economy, efficiency and effectiveness. When an organization masters the Three Es equally, it allows the organization to be more flexible and can adapt quickly to the changes in the future. If an organization only aims for the short term gains, they will suffer from many risks that can happen and if an organization aims for long term gains, they are most likely to improve their overall performance in the competitive market. The Economy in the Three Es refer to reducing costs of inputs while the Efficiency refers to the right effort allocation and lastly the Effectiveness refers to achieving goals. The first Three Es, the efficiency that…show more content…
Economy is partially related to efficiency as it also focuses on minimizing the cost of input of an organization. Economy is measured by looking at the cost of the resources an organization consumed and the value of the output they deliver. Tesco Seri Tanjung Pinang should know that economy is important for them as it can help them gain competitive advantage by offering their products with a lower price compared to other stores by lowering their costs. Since Tesco Seri Tanjung Pinang has an objective of offering at the most possible lowest price of their product to their customer, this element has become more important for them to implement because they want to minimize the input and maximize their output. Lastly, the effectiveness refers as to achieve goals by successfully delivering what they intended to. The phrase “doing the right thing” bests suits effectiveness as it means the progress of achieving an objective. Tesco Seri Tanjung Pinang has an objective of selling a lower price of their products to their customer therefore this element helps them by identifying the effectiveness. In order to make their objective effective, Tesco Seri Tanjung Pinang has to make sure every time that they have enough of product inventory to restock whenever a product is unavailable at the rack inside the store. This is to avoid customers being not able to purchase what they want and they might go to their competitor store to purchase it. Besides that, Tesco Seri Tanjung Pinang has to identify which product is their best-selling so they can take on this advantage to sell more to their customer. Feedbacks from the customers are important as they are showing Tesco Seri Tanjung Pinang what to improve. Trade-off is a technique or way of reducing one or more desirable outcomes in exchange for increasing or obtaining other desirable outcomes in order to maximize the total return of effectiveness. Cost minimization is a

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