Business Unit 4 Flashcards
What is change
The process of a business altering its strategies, operations, or structures in response to internal or external factors to improve performance, adapt to market conditions, or achieve strategic objectives.
Internal causes of change
- Changes in management style
- Change in business ownership
- Change in business size
- Introduction of new technology
External causes if change
- Introduction of new technology
- Labor market
- Changes in economic conditions
- Competition
- New legislation
- Changes in consumer tastes
What is Planned change
Refers to a deliberate and systematic process of implementing change within an organization. It involves a structured approach where objectives are set, strategies are developed, and resources are allocated to ensure the desired outcome
What is Unplanned change
A change that occurs spontaneously or unexpectedly, often as a result of external factors. It is not systematically anticipated or managed, requiring businesses to react quickly and adapt to maintain operations and competitiveness.
What is meant by managing change
Refers to the process of planning, implementing, and monitoring changes within an organization to achieve desired outcomes while minimizing resistance and disruption.
What is meant by Employee preparation when refering to managing change
The first stage in effective change management. This may involve reskilling to enable employees to carry out new tasks effectively. Will make a workforce more flexible and adaptable, enabling them to meet the demands of change. There may be need for recruitment so that the business has employees with new skills or managers, to fill new roles
What is Increased research and development expenditure, when refering to managing change
This is used both in preparation for change, and as a reaction to change. This type of spending develops new products, new methods of production and new technologies.
what is additional capital investment, when refering to managing change
Change can create the need for investment in new technology and new equipment. Change is often an expensive undertaking. If a business does not have access to sufficient finance, it is very unlikely that it will be able to implement effective change.
What are the different forms of resistance to change
- Employee resistance
- Lack of finance
- Lack of management expertise
- Supplier resistance
- Owner resistance
What is Organisational culture
The shared values, beliefs, norms, and behaviors that shape how individuals within an organization interact and work together. It influences decision-making, communication, and the overall working environment, and can significantly impact employee motivation, productivity, and the organization’s ability to adapt to change.
Leadership
Refers to the ability to influence, motivate, and guide individuals or teams towards achieving organizational goals towards
Natural Disasters
Failure of equipment
Employee error
Supply problems
Economic factors
Legal challenges
What is a risk assessment
The process of identifying, evaluating, and prioritizing potential risks that could negatively impact an organization’s operations, employees, or objectives. It involves analyzing the likelihood and potential severity of these risks, followed by implementing measures to mitigate or manage them effectively
What is meant by Preventative actions
Measures taken by an organization to identify and address potential issues or risks before they occur, reducing the likelihood of problems arising. These actions are proactive and aim to maintain smooth operations, ensure safety, and improve efficiency, often involving strategies such as regular maintenance, employee training, and implementing robust quality control systems.
What are Quantifiable/Insurable risks
Risks that can be measured and expressed numerically, typically in terms of their likelihood and potential financial impact on a business. These risks are often associated with factors like costs, revenues, or losses. Quantifiable risks enable businesses to make informed decisions based on data.
What are Unquantifiable/Insurable risks
risks that cannot be easily measured or expressed in numerical terms due to their uncertain nature. These risks are often subjective, difficult to predict, and harder to manage. Their likelihood and impact cannot be precisely calculated.
What is a Contingency plan
A predefined strategy or set of actions that an organization prepares to implement in response to unexpected events or emergencies. It is designed to minimize disruption, manage risks, and ensure business continuity. Contingency planning involves identifying potential risks, determining their impact, and developing alternative procedures to address them effectively.
What is Crisis management
he process by which an organization responds to a significant, unexpected event or situation that threatens it. Involves identifying the crisis, implementing strategies to mitigate its impact, and communicating effectively with stakeholders to maintain trust and minimize damage. Crisis management aims to restore normal operations as quickly and efficiently as possible.
What are Contingency funds
A reserved amount of money set aside by an organization to cover unexpected costs or emergencies. Contingency funds provide financial security and ensure that a business can maintain operations without significant disruption when faced with unexpected challenges.
What is taxation
Part of any income earned by a business must be paid to the government.
The revenue generated is used to fund public services such as education, health and the armed forces.
What are Political Factors
- Instability - Government needs to provide a stable economic and legal framework to operate in , if a business enters a politically unstable country then they are taking considerable risks
- National Security - As governments seek to protect their citizens, measures are introduced, these might: restrict movements of goods, people and their capital. These may negatively impact businesses
- Major Trading Partners -The UK might not be the only country to leave the European Union. Such uncertainty has the impact of disrupting financial markets and creating considerable uncertainty in the European single market and Eurozone
- Changes in Government - New governments may have varying attitudes toward business, influencing policies like pollution and workers’ rights. Pro-business policies may reduce restrictions, while others may increase costs, affecting profitability. For example, Republican governments in the USA are typically more pro-business than Democratic ones.
- Pressure groups - Pressure groups significantly influence political decisions, often leading to legislation changes, such as in the tobacco, alcohol, and gambling industries. Businesses must adapt to comply with these laws, increasing costs and reducing profits. Awareness of pressure group activities is essential for businesses.
What are Subsidies
Are financial assistance or support provided by governments or other organizations to businesses, industries, or individuals. The purpose of subsidies is typically to encourage certain behaviors or activities, reduce costs, or make goods and services more affordable. Might include direct payments, tax reductions, or grants that help lower operational costs or promote economic development
What is Fiscal Policy in business A level
Refers to the use of government spending and taxation to influence the economy. Governments adjust their spending levels and tax rates to control economic growth, manage inflation, reduce unemployment, and stabilize the economy. Can be either Expansionary or Contractionary
What is Monetary Policy
Refers to the actions taken by a country’s central bank to manage the money supply and interest rates in order to influence the economy. The primary goals of monetary policy are to control inflation, stabilize the currency, and promote economic growth. Can be either Expansionary or Contractionary
Governments legislation
Government regulation
What is Economic growth
refers to the increase in a country’s output of goods and services over time
The business cycle
refers to the periodic fluctuations in economic activity experienced by an economy over time. It consists of four main phases:
- Boom
- Recession
- slump
- recovery
What is Gross domestic product (GDP)
The total monetary value of all goods and services produced within a country’s borders over a specific time period, usually a year. It is a key measure of economic performance and indicates the size and health of an economy. GDP can be measured in three ways
What is Inflation
The rate at which the general level of prices for goods and services rises over time, reducing the purchasing power of money.
What are interest rates
The percentage charges applied by lenders on borrowed money or paid by banks on savings. Higher interest rates increase borrowing costs and encourage saving, while lower rates do the opposite.
What is an Exchange rate
refers to the value of one currency in relation to another. They determine how much of one currency can be exchanged for another and affect the cost of imports, exports, and international business operations.
What is Unemployment
demographic change
Demographic change refers to shifts in the characteristics of a population, such as age, gender, income, or family size, which can influence market demand and business strategies.
Social change
Social change is the transformation of societal attitudes, behaviors, and values over time, impacting consumer preferences and business operations.
technological change
Technological change refers to the development and adoption of new technologies or improvements to existing ones, which impact how businesses operate, produce, and deliver goods and services.
Automation
Automation is the use of technology, machinery, or software to perform tasks with minimal human intervention, improving efficiency, accuracy, and productivity in processes.
Communication technology
Communication technology refers to tools, systems, and devices that enable the transmission, storage, and exchange of information, such as phones, email, social media, and video conferencing platforms.
business ethics
Business ethics refers to the principles and standards that guide the behavior of businesses and individuals in the business world. It involves making decisions that are morally right, fair, and responsible, considering the impact on stakeholders such as employees, customers, suppliers, and society.
