Question

As you continued your discussion with Maia and Bram, you explain that even small, start-up companies should operate both efficiently and effectively. Although these terms sound similar, each has a different and precise meaning. You walk through a few examples with Maia and Bram to ensure that they have a solid understanding of the concepts. For the following examples, select the word or phrase that best completes the sentence.

Example : Dina specializes in making invitations for children's parties. Because she is using an old, worn-out printer, about half of the invitations must be thrown away due to smeared ink. However, she cannot afford to buy a new printer for at least 6 months. Dina is:

Answer 1

Efficiency refers to utilizing resources in a cost-effective manner, while effectiveness refers to achieving desired outcomes or goals. Both are important for the success of a start-up company.

Step-by-step explanation:

In the context of start-up companies, operating efficiently means utilizing resources in the most cost-effective way possible. This includes minimizing waste, reducing overhead costs, and streamlining processes. For example, in the case of Dina who specializes in making invitations, operating efficiently would involve finding ways to reduce the number of invitations being thrown away due to smeared ink.

On the other hand, operating effectively refers to achieving the desired outcomes or goals. This involves delivering high-quality products or services that meet customer needs and expectations. In Dina's case, operating effectively would mean ensuring that the invitations she does print are of excellent quality, even with the limitations of her old printer.

Both efficiency and effectiveness are important for the success of a small start-up company. By operating efficiently, the company can maximize its limited resources. By operating effectively, the company can build a strong reputation, attract customers, and achieve its goals.