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business 3/4 > business unit 4 aos 1 definitions + key knowledge > Flashcards

business unit 4 aos 1 definitions + key knowledge Flashcards

1
Q

change

A

any alteration in the internal and external environment

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2
Q

what determines a business’s competitive advantage

A

the ability to manage, embrace, and adapt to change

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3
Q

proactive

A

refer to initiating change instead of simply reacting to events. change is planned and occurs before a business is affected by environmental pressures.

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4
Q

reactive

A

refers to waiting for a change to occur and then responding to it. the change is unplanned and occurs after a business is affected by environmental pressures

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5
Q

efficiency

A

how well a business uses the resources needed to achieve a goal

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6
Q

effectiveness

A

refers to what degree a business has accomplished the objectives it set out to achieve

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7
Q

key performance indicators

A

refer to the specific criteria used to measure the efficiency and/or effectiveness of the business’s performance

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8
Q

percentage of market share

A

refers to the business’ share of the total industry sales for a particular good or service expressed as a percentage

relates to competitive advantage

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9
Q

net profit figures

A

refers to what remains when expenses are deduced from revenue

relates to costs, profit margins, etc

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10
Q

rate of productivity growth

A

rate of productivity growth refers to the change in productivity in one year compared to the previous year.

improves by reducing input costs or producing more outputs at the same cost. relates to HR and motivation

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11
Q

number of sales

A

refers to a measure of the amount of goods/services sold

relates to costs and operations

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12
Q

rate of staff absenteeism

A

refers to the number of workers who neglect to turn up to work when they’re scheduled to.

relates to HR

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13
Q

level of staff turnover

A

refers to the number of employees who are leaving the business and need to be replaced

relates to HR

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14
Q

level of wastage

A

refers to the amount of unwanted/unusable material created by the production process.
helps manage resources and cuts production costs

relates to CSR

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15
Q

number of customer complaints

A

refers to the amount of customers expressing their dissatisfaction with the business

relates to HR

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16
Q

number of workplace accidents

A

indicates how safe the workplace is for employees

relates to HR and operations

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17
Q

lewin’s force field analysis

A

outlines the process of determining which forces drive and which forces resist a proposed change.

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18
Q

a force field analysis helps ensure

A

the driving forces outweigh the restraining forces

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19
Q

driving forces

A

those that support the change

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20
Q

restraining forces

A

those that work against the change

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21
Q

benefits of a force field analysis

A

businesses can determine whether a change is worth it by calculating ‘fors’ and ‘againsts’, allows additional resource requirements to be identified, identifies inadequate systems

22
Q

limitations of a force field analysis

A

weighting of forces is subjective and could be biased, timelines are subjective and may not consider unexpected events, and identification of driving and restraining forces may omit some forces

23
Q

managers (driving)

A

managers that are also owners can change and maintain sales, profits, and market share
managers need to ensure shareholders earn a return on their investments and that dividends are paid

24
Q

employees (driving)

A

employees working in an innovative environment are likely to recommend changes to policies and procedures

25
Q

competitors (driving)

A

business may need to undergo changes to stay relevant to compete with others, pricing policies and new technologies can change because of competitors

26
Q

legislation (driving)

A

laws can be passed that stop a business from continuing or starting something

27
Q

pursuit of profit (driving)

A

businesses are always chasing profit therefore this is considered a driving force for change

28
Q

reduction of costs (driving)

A

if costs rise, profit decreases which will cause a business to change

29
Q

globalisation (driving)

A

the movement across nations of investment, tech, and finance brought about by the removal of trade barriers. globalisation makes businesses stay viable and competitive

30
Q

technology (driving)

A

allows a business to operate more effectively and efficiently and improves productivity.

31
Q

niche market

A

a narrowly selected market segment within a larger market. can be caused by r+d

32
Q

innovation (driving)

A

a process where something already established is improved upon. provides a competitive advantage.

33
Q

societal attitudes (driving)

A

pressure from society has forced businesses to implement procedures to preserve and protect the natural environment

34
Q

managers (restraining)

A

managers may make hasty decisions, may lack experiences to oversee change or handle resistance from various stakeholders

35
Q

employees (restraining)

A

new changes may break down corporate culture, employees may be resistant

36
Q

time (restraining)

A

external environment may change over time and the change may not be applicable, not enough time is given for people to accept it, businesses are unable to plan the change effectively

37
Q

organisational inertia (restraining)

A

refers to an unenthusiastic response from a business to proposed change

38
Q

legislation (restraining)

A

the legislation places restrictions on certain operational practices

39
Q

financial considerations

A

cost and revenue issues for a business. high costs of change will affect the profit margin.
purchasing new equipment, retraining, etc.

40
Q

porter’s generic strategies

A

explains how businesses may seek future growth by pursuing a competitive advantage over other businesses

41
Q

cost advantage

A

competitive advantage is gained through reducing/altering the costs of a business

42
Q

differentiation advantage

A

competitive advantage is gained through differentiating their good or service from others in the market

43
Q

lower cost approach

A

providing average quality products for low costs

will only be an above average performer in its industry if the price for its products is at or near the industry average

44
Q

strategies for low cost approach

A

reducing direct and indirect costs, improving efficiency, controlling areas of management and responsibility

45
Q

advantages of low cost

A

may save money on costs for expansion, savings can be put towards differentiation, may be able to stop competitors from increasing their market share if they cant match costs

46
Q

disadvantages of low cost

A

sales may drop as customers may think of the product as low quality, may lose its market share if other businesses copy the low cost approach, lowering costs now leaves little room for changes later

47
Q

differentiation approach

A

providing high quality goods and services for a premium price

48
Q

product differentiation

A

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

49
Q

strategies for differentiation approach

A

high quality products, multiple branding, innovation/R+D

50
Q

advantages of differentiation

A

improves connection to customers and gains customer loyalty, customer loyalty increases market share

51
Q

disadvantage of differentiation

A

differentiation is time consuming and during that time tastes may change, and differentiation has an initial cost that must not outweigh the benefits

business 3/4 (8 decks)

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