business unit 4 aos 2 definitions + key knowledge Flashcards
leadership
the process of positively influencing and encouraging individuals to set and achieve business objectives
by leading change, the manager
supports employees as they cross from existing work territories into new territory
how a manager treats his/her employees will determine
their acceptance or resistance to change
strategies to respond to kpis
staff motivation, training, change in management styles or skills, investment in tech, improved quality, cost cutting, lean production techniques, redeployment
staff training
training refers to the process of teaching staff how to do their job efficiently and effectively, boosting their knowledge and skills
managing employees related kpis, low productivity, low morale
staff motivation
what drives employees to apply effort over a sustained period of time
productivity, absenteeism, turnover kpis
management styles
managers behaviour and attitude when making decisions, directing and motivating staff, and implementing plans to achieve business objectives
management skills
abilities or competencies that a manager uses to complete a business objective
investment in technology
applications of knowledge that change people’s lives and the way in which a business operates
productivity, growth, quality, complaints workplace accidents, cost cutting
quality
the degree of excellence of goods or services and their fitness for a stated purpose
redeployment
the assignment of resources to another area of the business
improves efficiency, wastage, productivity, turnover, redeploying employees saves money
cost cutting
can be done through low cost approach, controlling the supply game, using assets more efficiently, redundancy, outsourcing
money kpis, productivity, wastage
lean production
a business wide approach that improves the efficiency and effectiveness of operations by eliminating waste and improving quality
strategies such as JIT and continuous improvement
market share, money kpis, productivity, waste, competitive
domestic opportunities
multiple branding, diversification, redeployment, franchising, mergers and acquisitions, product differentiation, joint ventures
multiple branding
a strategy where one business sells multiple brands in the same market
advantages of multiple branding
less space for competitors, saturates a market, fills gaps to provide more, caters to brand-switchers
disadvantages of multiple branding
public may think business is more profit oriented than customer-oriented, customers may become confused and switch, expensive, less profit per unit
diversification
the process of a business emerging or varying its range of products/field of operations
eg. cocacola making more drinks after not being able to buy red bull
advantages of diversification
opens a new market, attracts new customers
disadvantages of diversification
expensive, entering a market with well established competitors
merger
when two business make an agreement to unify
acquisition
when a business buys another business
advantages of mergers and acquisitions
cheaper way of entering the market because partner is alr established, new market, both can occur domestically and globally
disadvantages of mergers and acquisitions
expensive, loss of identity, risky to undertake
franchising
a person buys the rights to use the name and distribute the products of an existing business
advantages of franchising
expands market share without needing large capital, potential losses are minimised if not successful
disadvantages of franchising
loss of control, losses from reps of other stores
global opportunities
exporting, online store, partnering with an overseas business, opening a branch overseas
product differentiation
a strategy that involves a business attempting to increase sales and market share through the use of brand names and advertising.
advantages and disadvantages of global opportunities
adv - more opportunities, increase market share
disadv - domestic is cheaper and easier, fewer international laws
advantages and disadvantages of online stores
adv - increases customer base, opens the world as a potential market
disadv - more competition, time consuming
opening a branch
overseas
advantages and disadvantages of exporting
adv - larger market, increase sales and profit, spreads risk of business, increases customer base
disadv - competing against established businesses, businesses may not be aware of local laws or customs
quality assurance
the use of an external system so that a business achieves set standards in production
quality control
the use of inspections at various points in the production process to check for problems and defects
total quality management
an ongoing, business-wide commitment to excellence that is applied to every aspect of the business’s operation
advantages of differentiation
allows products to stand out, increases sales
disadvantages of differentiation
competitors copy strategy and steal market share, expensive, time consuming
joint ventures
a business arrangement where two or more parties agree to pool resources to accomplish a task
advantages of joint ventures
pool expertise, costs are shared, gain access to existing customer base
disadvantages of joint ventures
profits are shared, loss of control
learning organisation
a business where managers and staff continually seek to expand their capacity to achieve the results they desire
five principles of senge
systems thinking, mental models, personal mastery, shared vision, team learning
systems thinking
ability to look beyond whats occuring in the business and understand the interrelationships between different areas of the business
implement long term solutions, external changes influence internal environment
personal mastery
involves the people in a business developing proficiency through business activities
business improves as individuals improve
mental models
pre existing assumptions that influence the way we think
open cultures that question operations are more successful at implementing change
shared vision
aspirational description of what a business and its members would like to achieve
motivates employees and reduces resistance
team learning
encourages individuals to combine strengths and abilities to continuously grow together
communication and teamwork support change
low risk strategies
strategies whose use is likely to generate positive outcomes in the long and short terms
ICES
communication
increases trust and reduces resistance
empowerment
encouraging negotiation and communication helps make way for change
support
maintains staff morale and reduces resistance
incentives
reduces resistance because business shows they want employees
manipulation
skilful or devious exertion of influence over someone to get them to do what you want
threat
using force to get employees to conform
unfreeze
identify what needs to change and create the need for change
change
moving business into new position and empower action. empower staff to reduce resistance
refreeze
consolidate changes into business culture
benefits of lewin’s theory
structured approach to change, provides clear steps, reduces resistance
CSR and change
the desire to be seen as socially responsible drives a business to change to increase profit without damaging the environment
ecological sustainability
occurs when economic growth meets the needs of the present population without negatively affecting the environment for the next generation
business ethics
application of moral standards to business behaviour
sustainability report
comprehensive report of what a business is doing and has done in related to social issues
reviewing kpis is important because
it helps the business determine if the transformation was successful or not
