business management Flashcards
proactive change
when the business sees changes in the business environments and looks to implement their own change to maintain/gain a competitive advantage.
reactive change
when the business is affected by pressures from other business evironments and responds as a result
radical change
major alterations to the business often intiated by things such as dramatic drops in finance.
incremental change
when the business remains relatively the same and is working towards improving some aspects of its function.
unplanned change
occurs randomly
management must adapt quickly to this and try to minimise any negative affects that the business may have
planned change
when managers decide on a specific course of action to alter the business that will assist in development in the future
business change
this is the adoption of new ideas or behaviours
key performance indicators
kpis provide data that can measure how well a business is going in particular areas.
should ask if their meeting their key objectives/desired goals effectiveness?
are they using their resources well efficiency?
number of sales
the amount of goods and services sold by a business in a given period of time
percentage of market share
amount of sales a business has compared to its competitors, expressed as a percentage
net profit
the amount of money that is left after expenses have been deducted from the total amount of revenue earned.
rate of productivoty growth
compares the number of outputs produced to the number of inputs used in the production process, and the amount this grows in a given period of time
