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ACCA Applied Knowledge · Business and Technology · Consequences of ineffectiveness at work

A delivery company finds that many drivers are poorly organised and routinely miss agreed delivery slots. Several major clients have moved to competitors. Which consequence of ineffectiveness does this best illustrate?

This illustrates loss of reputation and customers, which reduces revenue. Drivers who repeatedly miss agreed delivery slots fail to meet client expectations, so clients switch to competitors. Fixed costs do not fall automatically, and the scenario shows no improvement in morale or regulatory compliance.

  1. ALoss of reputation and customers, leading to lower revenueCorrect
  2. BImproved employee morale from reduced workload
  3. CA reduction in the company's fixed costs
  4. DBetter compliance with regulation

Explanation

Missed delivery slots are a failure to meet customer expectations. Clients who leave cause revenue to fall and the company's reputation to suffer. The other options are not outcomes of unreliable service; fixed costs do not fall simply because clients leave.

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