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everything > business unit 4 aos 1 > Flashcards

business unit 4 aos 1 Flashcards

1
Q

Business change

A

The adoption of a new idea or behaviour by business
all businesses need to undergo change to remain competitive.
it is the moving of a business from one state to a new state of operation.
business change can involve trasitionsing these:
employees
corporate culture
products and services

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2
Q

change

A

Any alteration in the internal or external environments

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3
Q

Competitive advantage

A

occurs when a firm, industry or economy has a lower cost price structure then its rivals. in this situation, goods and services can be sold more cheaply, undercutting competitors, and expanding domestic and forge in sales. the concept can also be extended to product quality range and flexibility in adapting to new trends in the market

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4
Q

Driving forces

A

Those forces that support a change

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5
Q

effectiveness

A

The degree to which a business has achieved it stated objectives

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6
Q

efficiency

A

How well a business uses resources to achieve Objectives

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7
Q

Force Field analysis

A

Outlines the process of determining which force drives and which forces resist a proposed change

psychologist Kurt Lewin developed this model for understanding factors and forces that will influence a given situation.

driving and restraining forces work against each other making change hard.

a force field analysis requires an action plan

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8
Q

globalisation

A

The movement across nations of trade, investment, technology, finance and labor brought about by the removal of trade barriers

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9
Q

innovation

A

A process that occurs when something already establish is improved upon

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10
Q

Key performance indicators

A

kpis are criteria used as a measure of the success or the efficiency and effectiveness of a particular area of a business performance
KPIs are useful because they help management understand whether they’re taking the right path to achieving business objectives or whether something is going wrong and needs to be changed.

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11
Q

Level of wastage

A

The amount of unwonted or unusual materials created by the production process of the business
The biggest problem with waste, apart from the fact it costs money, is its potential detrimental impact on the environment. e. g Storage is insufficient or inappropriate.
Consider conducting a quality assurance assessment to identify incorrect storage procedures?
Adopt materials strategies such as JIT.

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12
Q

Net profit figures

A

The measurement of a companies profit once operating costs, taxes, interest and depreciation have all been subtracted from its total revenue

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13
Q

Niche market

A

Narrowly selected market segment within a larger market

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14
Q

Organisational inertia

A

The unenthusiastic response from a business to propose change

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15
Q

Percentage of market share

A

The business is share of total industry sales for a particular good or service, often expressed in a percentage
If a businesses percentage of market share figure reduces over time, and the industry is stable, the firm is shrinking and it indicates a problem.
e.g Customers are no longer happy with the product
so = Quality strategies could be implemented?
Staff training might be needed?

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16
Q

proactive

A

Initiating change rather than simply reacting to events

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17
Q

Product differentiation

A

The use of factors such as brand names, delivery methods and advertising to establish differences between substitutable products

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18
Q

productivity

A

A measure of performance that indicates how many inputs it takes to produce an output

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19
Q

Rate of productivity growth

A

The change in productivity in one year compared to the previous year

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20
Q

Rate of staff absenteeism

A

The number of workers who do not turn up for work when they are scheduled to do so
e.g Employees are dissatisfied and not engaged with their jobs
Bigger commitment to employee motivation strategies or Investment in staff support, such as counselling?

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21
Q

reactive

A

Waiting for a change to occur and then responding to it

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22
Q

Restraining forces

A

Those forces that work against the change

23
Q

Staff turnover

A

The number, or the right, of employees were leaving the business over specific period of time, and need to be replaced by new employees

24
Q

number of sales kpi

A

a measure of the amount of goods and services sold

25
Q

rate of staff absenteeism kpi

A

the number of workers who do not turn up for work when they are scheduled to do so

26
Q

staff turnover kpi

A

The number or the rate of employees who are leaving the business over a specific period of time and need to be replaced by new employees

27
Q

level of wastage
kpis

A

the amount of unwanted or unusable material created by the production process of a business

28
Q

number of customer complaints
kpis

A

The number of customer complaints refers to the number of customers who contact the business to express the disappointment with the business

29
Q

number of website hits
kpis

A

a hit on website is request to a websever for a file such as a web page or image

30
Q

number of workplace accidents
kpis

A

indicates how safe a work place is

31
Q

driving forces
factors

A

customer
legislation
changes in tech
opportunities to enter a new market

32
Q

restraining forces
factors

A

financial considerations
employees resistance
time
managers

33
Q

benefits of the force field analysis

A

businesses are able to weight up the factors for and against and whether the change is worth undertaking

it allows a business to identify and strengthen the driving forces supporting the change and to take action to reduce or eliminate the restraining forces

34
Q

limitations of the force field analysis

A

The identification of the driving restraining forces may admit some forces. They may not be clearly identifiable at the time and may emerge during the change.

35
Q

driving forces for change

A

innovation
societal attitudes
owners and managers
employees
competitors
legislation
pursuit of profit
reduction of costs
globalisation
technology

36
Q

legislation driving forces

A

laws can be passed that require a business to stop doing something or to start doing something

37
Q

societal attitudes

A

businesses are constantly confronted by change in society s attitudes and values

38
Q

restraining forces in a business

A

managers
time
organisational intern is
employees
legislation
financial considerations

39
Q

financial considerations

A

purchasing new equipment
retraining the workforce
redundancy payments

40
Q

organisational inertia

A

organisation inertia is the organisations inability to make internal changes or lack of response when faced with significant external changes

41
Q

porters generic strategies

A

In response to competition a business may wish to gain its own competitive advantage. Porter identified two categories of competitive advantage.
lower cost and differentiation

42
Q

advantages of low cost

A

a business may become more profitable as profit per unit can increase

a business may be able to prevent competitors form increasing their market share if they can’t match the cost

43
Q

lower cost strategies disadvantages

A

sales may fall as customers may perceive a product being poor quality

44
Q

differentiation strategies

A

product differentiation refers to the use of brand names, delivery methods, advertising, or a number of factors to establish differences between suitable products

some strategies that business could use to differentiate their products are:
high quality
products
multiple branding
innovation

45
Q

advantages of differentiation

A

if able to charge premium price the business can make great revenue
by developing customer loyalty, market share can be increased

46
Q

disadvantages of differentiation

A

rival businesses can copy the differentiated approach negating any gains

47
Q

how to do a force field analysis

A

weighting, ranking, implementing and evaluating a response

48
Q

managers as restraining forces

A

If a manager is not on board with change, this can act to seriously derail the chances of success by negatively influencing employees, not prioritising the important change tasks, or ignoring them completely. This can be because:
they are not convinced by the change
could fear of job security

49
Q

time as a restraining force

A

Time is a significant resistance factor (particularly for large-scale change) because there are many, many steps involved and many stakeholder interests which require careful balancing before change is finalised.

50
Q

employees as a driving force

A

Employees working for a business expect to be paid fairly, trained properly and treated ethically in return for their vital contribution to the business.
Good managers will recognise that
If employees feel supported by management, they are more likely to bring forward new ideas and challenge the ‘status quo’ for the betterment of the business.

51
Q

all 10 KPIS

A

PERCENTAGE OF MARKET SHARE
NET PROFIT FIGURES
RATE OF PRODUCTIVITY GROWTH
NUMBER OF SALES
RATES OF STAFF ABSENTEEISM
LEVEL OF STAFF TURNOVER
LEVEL OF WASTAGE
NUMBER OF CUSTOMER COMPLAINTS
NUMBER OF WEBSITE HITS
NUMBER OF WORKPLACE ACCIDENTS

52
Q

pursuit of profit as a driving force

A

Pursuit of profit is a focus of most, if not all, organisations. Whilst businesses have several objectives, profit must be delivered in some capacity, otherwise the business will not be able to continue.

53
Q

porters generic strategies

A

The theory attempted to explain how businesses may seek future growth by pursuing a competitive advantage over other businesses.
the theory involved two ways a business may gain. competitive advantage theses being lower cost and differentiation.
Lower cost is when a business has a lowest cost for a particular good or service within an industry this is a great strategy because it is accessible for the largest amount of the population and is peeling to price conscious customers

The other way is differentiation differentiation is when a business takes a more creative and innovative approach to gaining a competitive advantage.
A business can use multiple ways such as delivery methods, marketing, brands naming, and quality their products different to competitors and appealing to the more image conscious consumers

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