ao1 unit 4

Question 1

What is business change?

Answer 1

The alteration of behaviors, policies, and practices of a business.

Question 2

What is a proactive approach?

Answer 2

When a business makes a change in order to avoid a future problem or use as an opportunity to gain a competitive advantage.

Question 3

What is a reactive approach?

Answer 3

When a business undertakes change in response to a situation or crisis.

Question 4

What is a KPI?

Answer 4

A key performance indicator is a criteria they use to measure a businesses efficiency and effectiveness in achieving different business objectives.

Question 5

What is percentage of market share?

Answer 5

The proportion of a businesses total sales, compared to the total sales in the industry, then expressed as a percentage.

Question 6

What is net profit figures?

Answer 6

Calculated by subtracting total expenses incurred from total business revenue earned over a specific time period.

Question 7

What is productivity?

Answer 7

The ratio of outputs produced compared to inputs required.

Question 8

What is number of sales?

Answer 8

The total quantity of goods and services sold by a business over a specific time period.

Question 9

What is number of customer complaints?

Answer 9

The number of customers who have notified a business with their distatification over a specific time period.

Question 10

What is rate of staff absenteeism?

Answer 10

The average amount of days when employees are not present when they are scheduled to work for a specific time period.

Question 11

What is level of staff turnover?

Answer 11

The percentage of staff that leave a business over a specific time period and need to be replaced.

Question 12

What is number of workplace accidents?

Answer 12

The amount of injuries and unsafe incidents that occur over a specific time period.

Question 13

What is level of wastage?

Answer 13

The amount of inputs and outputs that are discarded during the production period.

Question 14

What is website hits?

Answer 14

The amount of customers that visit a businesses website over a specific time period.

Question 15

What are the KPI’s?

Answer 15

Percentage of market share
Net profit figures
Rate of productivity growth
Rate of staff absenteeism
Number of sales
Number of customer complaints
Number of workplace accidents
Number of website hits
Level of staff turnover
Level of wastage

Question 16

What is the force field analysis?

Answer 16

Kurt Lewis’s theory where factors affecting the business environment that promote and support business change.

Question 17

What are the steps for the force field analysis?

Answer 17

1.Weighting
2.Ranking
3.Implementing
4.Evaluating

Question 18

What is weighting?

Answer 18

The process of scoring and attributing a value to the driving and restraining forces.

Question 19

What is ranking?

Answer 19

Arranging the forces in order of value and determining the total score of driving and restraining forces.

Question 20

What is return on investment?

Answer 20

What the owner gains financially from the business in comparison to what they invested.

Question 21

What are owners wanting as a driving force?

Answer 21

The success of the business from a financial, personal and reputation position.

Question 22

What are managers wanting as a driving force?

Answer 22

The success of the business from a job security, financial and personal reputation position.

Question 23

What are employees wanting as a driving force?

Answer 23

The success of the business from a job security, financial, career development and personal reputation position.

Question 23

What are managers wanting as a driving force?

Answer 23

The success of the business from a job security, financial and personal reputation position.

Question 24

How does pursuit of profits act as a driving force?

Answer 24

The need to earn profit to ensure the success of the business as well as giving a portion to owners and shareholders.

Question 25

How does reduction of costs act as a driving force?

Answer 25

The reduction of costs can creative less expenses and more profit, ties into pursuit of profits.

Question 26

How do competitors act as a driving force?

Answer 26

If competitors change themselves they can get a more competitive advantage and take up more market share, so the businesses around need to do better than the competitor.

Question 27

How does legislation act as a driving force?

Answer 27

If new legislation is introduced a business will need to change.

Question 28

How does globalization act as a driving force?

Answer 28

Expanding overseas can attract more customers which can increase trade as well as its a chance to get lower expenses to produce.

Question 29

How does technology act as a driving force?

Answer 29

Implementing new systems can make everything efficient and easier to make or even making a website to reach more people.

Question 30

What are managers wanting as a driving force?

Answer 30

The success of the business from a job security, financial and personal reputation position.

Question 30

How does innovation act as a driving force?

Answer 30

Improving products or making new products never seen in the market can gain you a competitive advantage and you can take up more of the market share.

Question 31

How does societal attitudes act as a driving force?

Answer 31

Businesses will need to align with society’s pov to maintain market share meaning they will have to change products or the getting of resources.

Question 32

What are the driving forces?

Answer 32

Competitors
Employees
Globalization
Innovation
Legislation
Manager
Owners
Pursuit of profit
Reduction of cost
Societal attitudes
Technology

Question 33

How can managers restrain change?

Answer 33

They can restrain as they could not be convinced by the change, they are comfortable in the position they are in and they fear change might threaten their position.

Question 33

How can employees restrain change?

Answer 33

They can restrain as they could fear the unknown, fear for job security and fail to see a reason for a change.

Question 34

How does time restrain change?

Answer 34

They can restrain because of deadlines, delays, time to change of procedures and schedules.

Question 35

How does organisational inertia restrain change?

Answer 35

This can restrain as it’s the habit of a businesses remaining established to the ways it operates. Like sticking to the status quo.

Question 36

How can legislation restrain change?

Answer 36

This can restrain as a business might want to change but it could be illegal to do what they want to do.

Question 37

How can financial consideration restrain change?

Answer 37

This can restrain change as the business might not have the finances to change.

Question 38

What are the restraining forces?

Answer 38

Employees
Financial considerations
Legislation
Managers
Organisational inertia
Time

Question 39

What is Poter’s Generic Strategies?

Answer 39

A business management theory of how a business can seek to acquire a competitive advantage in the industry/market therefore increasing market share.

Question 40

What is Porter’s lower cost strategies?

Answer 40

When a business offers customers a similar or lower price product compared to the average in the industry whilst achieving profit by having lower cost operations compared to competitors. Advantages include reduces expenses and strong competitive advantage in markets. Disadvantages include customers may associate lower cost with lower quality and low customer loyalty as they are price sensitive.

Question 40

What is Porter’s differentation strategy?

Answer 40

When a business decides their strength is to be more innovative and creative than their competitors, they then make products that are unique compared to the current market. Advantages include strong competitive advantage and brand loyalty as well as can charge premium pricing. Disadvantages is that customers who are price sensitive won’t buy as well as its hard to protect your intellectual property.