ACCA Applied Knowledge · Business and Technology · Consequences of ineffectiveness at work
Staff at Dalton Ltd regularly miss deadlines because managers give unclear instructions and do not monitor progress. Customers are now complaining and some have moved to competitors. Which consequence for the organisation does this BEST illustrate?
Damage to reputation leading to loss of revenue and market share. Missed deadlines from poor management cause customer dissatisfaction and defections to competitors, which reduces sales and weakens the firm's market position. The other options describe favourable outcomes that do not match the facts.
- ADamage to reputation leading to loss of revenue and market shareCorrect
- BImproved competitive advantage through lower prices
- CGreater stakeholder satisfaction from better governance
Explanation
Missed deadlines cause poor service, customer complaints and defections to rivals. This harms reputation and reduces revenue and market share. The other options describe positive outcomes that contradict the scenario.
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