Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

VCE Business Management 3/4 2017 > Business Change > Flashcards

Business Change Flashcards

1
Q

Distinguish between Change and Business Change

A

Change is any alteration in the internal or external environments. These are differences that occurs naturally that the business does not actively implement.
such as change in customer tastes or a change in employee expectations.
Whereas
Business Change is the adoption of a new idea or behaviour by a Business. these are the the changes that the business actively implements in order to improve their efficiency and effectiveness in achieving business objectives

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Def: Change

A

Change is any alteration in the internal or external business environments.

eg - due to technology advances over the last ten years there have been a 50% decrease in the postage of letters and a 50% increase postage of parcels due to online shopping.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Def: Business Change

A

Business Change is the adoption of any new idea or behaviour by a business.

eg- Australia Post had to adapt to the societal and technological change causing the increase in parcels and decrease in letters causing them to implement vehicles that allow the postmen to carry an increase in small packages.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Def: Proactive

A

Proactive is to initiate change rather than simply react to events.

eg-

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Def: Reactive

A

Reactive is to wait for change to occur then to respond to it.

eg-

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Skills in Managing Change- 6

A 
Communication skills
Planning Skills
Leading Skills
Decision-Making Skills
Interpersonal Skills
Delegating Skills
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Def: Efficiency

A

Efficiency is the degree to which a business has achieved its business objectives

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Def: Effectiveness

A

Effectiveness refers to how well a businesses uses resources to achieve business objectives

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

Def: Key Performance Indicators

A

Key Performance Indicators are a specific criteria used to measure the efficiency and effectiveness of a businesses performance.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

KPI- Def: Percentage of Marketshare

A

Percentage of Marketshare refers to the businesses portion of the total industry sales for a particular good or service, expressed as a percentage

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

KPI- Def: Net Profit Figures

A

Net Profit is what remains when expenses are deducted from the revenue earned.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

KPI- Def: Rate of Productivity

A

Rate of Productivity is a measure the change in output from one year compared to a previous year.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

KPI- Def: Number of Sales

A

The Number of Sales of a product is a measure of goods or service sold.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

KPI- Def: Rate of Staff Absenteeism

A

Rate of Staff Absenteeism measures the number of workers who neglect to turn up to work when scheduled to do so.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

KPI- Def: Level of Staff Turnover

A

Staff Turnover measures the number of employees leaving the business.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

KPI- Def: Level of Wastage

A

Level of Wastage measures the amount of rubbish created by the production process

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

KPI- Def: Number of Customer Complaints

A

Customer Complaints indicate whether or not the people who buy the products are satisfied with the performance of the business.
as a result of a customer satisfaction survey

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

KPI- Def: Number of Workplace accidents

A

The number of workplace accidents indicate how safe the work environment is for employees.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

Def: Benchmarking

A

Benchmarking occurs when a business measures its performance against that of other businesses known for their excellence.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

Def: Force Field Analysis

A

Force Field Analysis outlines the process of determining which forces drive and which resist a proposed change

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

Def: Driving Forces

A

Driving Forces are those factors which support the change

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

Def: Restraining Forces

A

Restraining Forces are those factors which work against change

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

Def: Internal Environment

A

Internal Environment refers to the factors inside the business.

24
Q

Def: External Environment

A

The External Environment includes those things over which the business has little control over. It may be divided into an operating environment and a macro environment.

25
Q

External Environment- Def: Operating Environment

A

Operating Environment refers to the outside factors with which the business directly interacts in the course of conducting its business.

26
Q

External Environment- Def: Marco Environment

A

The Macro Environment is made up of the broad factors in the economy and society within which the business operates.

27
Q

Internal Environment Driving Forces

A
  • Managers
  • Employees
  • Pursuit of Profit
  • Reduction of Costs
28
Q

Operating Environment Driving Forces

A
  • Competitors

- Customers

29
Q

Marco Environment Driving Forces

A
  • Legislation
  • Globalisation
  • Technology
  • Innovation
  • Societal Change
30
Q

Def: Globalisation

A

Globalisation is the movement across nations of trade, investment, technology, finance and labour brought about by the removal of trade barriers.

31
Q

Innovation- Def: Innovation and Niche Market

A

Innovation is a process that occurs when something already established is improved on

Niche Market is a narrowly selected market segment within a larger market.

32
Q

Restraining Forces for business change

A
  • Managers
  • Employees
  • Time
  • Organisational Inertia
  • Legislation
  • Financial Considerations
33
Q

Restraining Forces for business change- Def: Orgainsational Inertia

A

Organisational Inertia refers to an unenthusiastic response from management to proposed change.

34
Q

Def: Competitive Advantage

A

A competitive advantage occurs then a firm, industry or economy has a lower cost price structure than its rivals for example goods and services are sold at a cheaper price and competitors are undercut

35
Q

Force Field Analysis: What are the driving forces for change- Internal

A
  • Managers:
  • Employees:
  • Pursuit of Profit
  • Reduction of Costs
36
Q

Force Field Analysis: What are the driving forces for change- External Macro and Operating

A

Operating:

  • Legislation
  • Globalisation
  • Technology
  • Innovation and Societal Change

Macro

  • Competitors
37
Q

Restraining forces of Change

A
  • Managers
  • Employees
  • Time
  • Organisational Inertia
  • Legislation
  • Financial Considerations
38
Q

what are the 4 main financial cost of change?

A
  1. Purchasing new equipment
  2. Redundancy payments
  3. Retraining the workforce
  4. Reorganising plant layout.
39
Q

What are porters 2 generic strategies

A

Lower Cost Strategies

Differentiation Strategies

40
Q

what are the 5 Competitive Forces for Porter

A

Entry of New Competitors

Threat of Substitutes

The Bargaining Power of Buyers

The Bargaining Power of Suppliers

Rivalry among existing competitors

41
Q

What are the Different Lower Cost Strategies

A
  • Use Assets Efficiently
  • Lower Costs of Operating
  • Control the Supply Chain
42
Q

Explain the Differentiation Strategy

A

Porters Generic Differentiation Strategy aims for a product to make their product unique in some way to gain a competitive advantage and allow the business to market itself as a leader or innovator in that industry.

43
Q

Explain Porters theory

A

Porters theorised that in order to gain a competitive advantage it should first analyse the five competitive forces (The entry of new competitors, bargaining power of buyers, bargaining power of suppliers, rivalry among existing competitors and threat of substitutes) in order to determine the most appropriate generic strategy to use in order to gain a competitive edge.

44
Q

What are the 6 skills used to manage change

A
  1. Delegation skills
  2. Communication skills
  3. Interpersonal skills
  4. leading skills
  5. decision making skills
  6. planning skills
45
Q

What are the different KPIs used to analyse a performance of a business

A
  • Percentage of marketshare
  • Net Profit Figures
  • Rate of Productivity growth
  • Number of Sales
  • Customer Complaints
  • Rate of Absenteeism
  • level of staff turnover
  • level of wastage
  • number of workplace accidents
46
Q

What are the 5 steps of a Force Field Analysis

A
  1. Form a guiding group of people driving or enabling that change
  2. identify the change proposal using the force field analysis template.
  3. as a group, identify the forces that are currently driving or restraining the change and assign a score relative to the perceived strength of the force. the low strength forces should be assigned a 1 and the highest strength forces should be assigned a 5.
  4. Prioritise the top 3 to 5 most restraining and driving forces these are the forces the business and guiding group need to either eliminate or strengthen to allow the change to occur
  5. List the actions that are required to be completed to meet the proposed change and assign responsibility for each action
47
Q

Pros of a Force Field Analysis

A
  • Businesses are able to weigh the reasons why a business should implement change and why a business shouldn’t implement a change.
  • it allows a business to identify and strengthen the forces supporting the change and identify and weaken the forces restraining the change.
  • it allows the business to be more informed about the businesses strengths and weaknesses
48
Q

Cons of a Force Field Analysis

A
  • It may display inaccurate information about the driving and restraining forces due to a bias
  • a business may neglect or may not be informed of certain driving and restraining forces and therefore may implement a inferior change or do not implement a superior change
  • a force field analysis is time consuming and therefore will not be beneficial in an emergency.
49
Q

what are the key principals of Lewin’s Force Field Analysis

A
  • Driving Forces and restraining forces
  • The force Field analysis should be carried out through using 5 steps.
    firstly, form a guiding groups supporting or enabling change.
    secondly, the business should identify a proposed change using the Force Field Analysis template.
    thirdly, the forces should be numbered based on order of strength, such as a extremely weak force should be given a number 1 whereas a extremely strong force should be given a number 5.
    fourthly, the most 3 to 5 restraining and driving forces should be prioritised and then should either be eliminated or strengthened to allow the change to occur. this can occur through an action plan such as a timeline eg 6 months.
    finally, the actions that are required to be completed to meet the proposed change and assign a responsibility for each action.
  • If the restraining forces outweigh the driving forces the change shouldn’t be implemented whereas if the driving forces outweigh the restraining forces the change should be implemented.
50
Q

Communicating Skills

A

Communicating effective transfer of information from a sender to a receiver and to listen to feedback.

51
Q

Delegating Skills

A

Delegating is ability to transfer responsibility from a manager to an employee to carry out specific activities

52
Q

Leading Skills

A

Leading is the ability to influence or motivate people to work towards the achievement of a specific business objective.

53
Q

Planning Skills

A

Planning is the ability to define business objectives and determine a method or strategy to achieve them.

54
Q

Decision Making skills

A

Decision making is the ability to identify the options available and choose a course of actions from the alternatives.

55
Q

Interpersonal Skills

A

Interpersonal Skills refer to the ability to deal or liaise with people and build positive relationships with staff

VCE Business Management 3/4 2017 (12 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions