Comparison of Operational Efficiency and Value Augmentation in Business Enterprises

Running head: ACCOUNTING
Accounting
University Name
Student Name
Authors’ Note

2
ACCOUNTING
Analysis of Response 1:
Comparison, critical evaluation and justification of statements
The first response talks about operational efficiency that stresses on quality of
product/service. As per the first response, superior operational efficiency refers to higher
quality product over cost of the product. Bearing operational effectiveness can get superior
quality product for the least operational cost (superior quality and cost effectiveness).
Operational efficacy implies getting appropriate individuals at the appropriate places with the
correct portfolio of investments at correct times (Goetsch & Davis, 2014). This response also
presents the fact that important operational stratagem in easily eliminating wastage of
products and attainment of sustainability can help in improvement of business procedures.
However, this response also mentions about usage of business mechanism such as Six Sigma
that can aid business owners to enhance the present business procedures and at the same can
eliminate issues otherwise defects that are found. This first reaction also states that in the
concerned business concern under consideration, six-sigma can add automation into
procedures of the business and can properly improve and make sure fixing of errors of new
procedures. Nonetheless, six-sigma can prove to be costly for small sized businesses to
execute. Also, the companies might face difficulty in delivering training to different
employees and understanding the specific system and the way to apply the same to a definite
business procedure (Goetsch & Davis, 2014). Furthermore, Six Sigma is implemented to
different facets of production along with planning procedures. This might possibly generate
rigidity and bureaucracy that in turn can produce delays and smother creativity (Martínez-
Jurado et al., 2018). Furthermore, the focus of customers that makes sense for a corporation
are not considered owing to underlying objective of attainment of stipulated level of
satisfaction of customers of Six Sigma. In this way, it becomes possible to undertake
operational efficacies for proper functioning of the business concern in a cost efficient