Business management chapter 4 Flashcards
business change
is the alteration of behaviours, policies and practices of the business
. businesses are constantly evolving and adapting to improve thier performance
. To review the success of business change and determine its effect on performance, businesses use key performance indicators (KPIs).
proactive approach to business change
is a business changes to avoid future problems or takes advantage of an opportunity to gain a competitive advantage. This can involve fulfilling a gap in the market or introducing technology to implement change.there is likely to be fewer pressures
acting on the business
Reactive approach to business change
is when a business undertakes change in response to a situation or crisis.businesses must respond in this way to remain competitive and viable. Unfortunately, this means several pressures are acting on the business for urgent and unplanned change.
similarities of proactive and reactive change
. both approaches are utilised by a business or manager to implement change
. both involves the business undertaking change for future benefits
. both require a support of a manager
. both can be used to respond to stakeholder conflicts
KPI’s
Key performance indicators are criteria that measure a businesses efficiency and effectiveness in achieving its different objectives. Continuous usage of KPIS can allow for the ongoing evaluation
percentage of market share
measures that proportion of a business total sales, compared to in total sales in the industry, expressed as a percentage figure
net profits figures
are calculated by subtracting total expenses incurred from total business revenue earned, over a specific period of time. Net profit figures can be used to evaluate financial performance and business objectives
Rate of productivity growth
is the change in the total output produced from a given level of inputs over time, expressed as a percentage figure.
number of sales
is the total quantity of goods and services sold by a business over a specific period of time. business’s financial performance can be measured using number of sales as a KPI, as it
indicates how well goods and services are received by customers
Number of complaints
is the number of customers who notified the business of their dissatisfaction over a specific period of time. The number of customer complaints indicates the
level of customer satisfaction and engagement with the goods and services they purchase.
Rates of staff absenteeism
are the average number of days employees are not present when scheduled to be at work, for a specific period of time. A human resource manager would examine the rates of staff absenteeism as an indicator of staff morale.
Level of staff turnover
is the percentage of employees that leave a business over a specific period of time and must be replaced. Fom the business’s perspective, the loss of
experienced and qualified employees can have a direct impact on productivity as time and money must be spent on recruiting and training new employees.
Number of workplace accidents
measures the amount of injuries and safe incidents that occur at a work location over a specific period of time
can occur due to
- old or faulty equipment
- poorly trained employees
level of wastage
is the amount of inputs and outputs that are discarded during the production process
Number of website hits
is the amount of customer visits that a business online platform receives for a specific period of time. This can be a useful indicator of a business’s customer
engagement and customers’ overall interest in the business and its products.
