Component 3 Flashcards
What is an internal cause of change?
Change that occurs in the business’s internal environment, including structural, strategic, and people changes.
Examples include changes in management systems, vision, objectives, and employee attitudes.
What is an external cause of change?
Change that occurs from the external environment, such as legislation, technology advances, or market changes.
These are factors beyond the business’s control.
Define planned change.
Change that is proactively organized by leaders in response to recognized needs.
It includes successful implementation of strategic plans.
What is unplanned change?
Change due to unexpected events leading to reactive management.
List John Storey’s four different approaches to managing change.
- Imposed Total package
- Imposed piecemeal initiatives
- Negotiated piecemeal initiatives
- Negotiated total packages
What does negotiation refer to in the context of change management?
Democratic approaches to discuss potential changes with staff.
What is the imposed approach in change management?
When Senior Management dictates changes to employees without seeking their input.
What is the total package approach to change?
A large scale change to all areas of working practice.
What are piecemeal initiatives?
Small, gradual changes made to working practices.
What is Lewin’s three-step process for planned change?
Unfreeze, Change, Freeze (or Refreeze).
Define internal risks.
Risks that arise from activities within a business, such as machine failure and strikes.
What are external risks?
Risks that occur from the external environment, such as competitor activity or natural disasters.
What are contingency plans?
Plans made to combat anticipated risks and unwanted events.
Examples include contingency funds and alternative production arrangements.
Define insurable risk.
Expected and unwanted events that can be covered by insurance.
What is an uninsurable risk?
Situations that cannot be insured due to unpredictability or potential catastrophic impact.
What are fiscal policies?
Government actions regarding taxation and spending to influence the economy.
Define monetary policies.
Control of the money supply through exchange rates and interest rates to influence the economy.
What is a direct tax?
Taxes like income tax that directly impact individuals or businesses.
What is an indirect tax?
A tax on the production and purchase of goods and services, such as VAT.
What are subsidies?
Payments made by governments to businesses to incentivize actions that benefit the economy.
What is political stability?
A stable environment free from conflict, with clear laws and favorable economic conditions.
What is a government contract?
Terms under which the government buys private sector goods or services.
Define the business/economic cycle.
A pattern of changes in the level of GDP, including Boom, Recovery, Recession, and Slump.
What does GDP stand for?
Gross Domestic Product.
What characterizes a boom in the economy?
High demand for goods/services, high inflation, low unemployment, and near full production capacity.
What is a slump in economic terms?
The lowest point in the economy, characterized by negative GDP, low confidence, and high unemployment.
Define recession.
Two successive quarters of negative GDP with falling confidence and rising unemployment.
What is recovery in the economic cycle?
An increase in GDP, with rising confidence and falling unemployment.
What is inflation?
A sustained rise in the general price level, measured by indices like CPI or RPI.
What is cost-push inflation?
Inflation caused by increases in the price of raw materials.
What is demand-pull inflation?
Inflation that occurs when demand exceeds supply due to increased income or confidence.
What are interest rates?
The cost of borrowing and the reward for saving.
What is an exchange rate?
The value of one country’s currency expressed in terms of another.
Define unemployment.
People of working age who are out of work and actively seeking employment.
What is demographic change?
Changes in the population’s structure in terms of age, size, gender, and income.
What is lifestyle change?
Changes in living conditions, behavior, and habits of people or groups.
What is cultural change?
Changes in cultural attitudes and lifestyles due to increased migration.
Define migration.
The movement of people from one country to another.
What is automation?
Business processes performed continuously without human intervention.
What does ICT stand for?
Information Communication Technology.
What is business-to-business (B2B) technology?
Technology that allows businesses to reach other businesses as customers.
What is manufacturing resource planning?
Using ICT for real-time, accurate stock control.
What is Computer Aided Design (CAD)?
An interactive system for generating and using geometric and graphic designs.
What is Computer Aided Manufacturing (CAM)?
Using computing technology to program machines for manufacturing processes.
What are Electronic Point of Sales Systems (EPOS)?
Computerized systems for accurate financial and operational information post-sales.
Define m-commerce.
Buying and selling goods and services online through wireless devices.
What is e-tailing?
Direct purchasing of goods or services from sellers over the internet.
What are business ethics?
Considering the needs of wider stakeholders in business decisions.
What are environmental concerns in business?
Awareness of the impact of business activities on pollution and climate change.
What are pressure groups?
Organizations aiming to influence public opinion and policy without seeking political office.
What is animal rights awareness in business?
Being conscious of the supply chain’s impact on animal rights.
What does treatment of workers refer to?
Adhering to employment legislation and exceeding expectations to avoid negative PR.
What is the treatment of suppliers?
Fair treatment of suppliers and ensuring Fairtrade practices.
What is the treatment of customers?
Ensuring protection from unfair selling practices and adhering to consumer laws.
What is company law?
Laws controlling how businesses are formed and managed.
Define employment law.
Regulates the relationship between employees and employers.
What is anti-discrimination law?
Laws preventing unfair treatment based on protected characteristics.
What does consumer protection include?
Laws ensuring fairness in sales, product description, and suitability for purpose.
What is competition policy?
Ensures fair competition within markets and investigates businesses with over 25% market share.
What does health and safety at work legislation entail?
Employers’ duty to ensure employee wellbeing and safety.
What is data protection?
Regulation concerning the use and security of personal data by organizations.
What is intellectual property?
Legal rights regarding designs, inventions, and artistic works.
What is trademark legislation?
Covers legal rights regarding designs and artwork, including brand logos.
What is the minimum wage?
The legally required minimum payment for workers set by the Low Pay Commission.
What is pollution?
Introduction of harmful substances into the atmosphere due to business activity.
Define climate change.
Long-term changes in temperature influenced by human activities.
What is corporate social responsibility (CSR)?
Self-regulation by businesses regarding their environmental impact.
What is international trade?
Exchange of goods and services between countries.
Define free trade.
A policy with no restrictions on imports or exports between countries.
What is protectionism?
Government policies to restrict international trade to protect local businesses.
What are quotas?
Limited quantities of a product that can be produced, exported, or imported.
What are tariffs?
Taxes on specific classes of imports or exports.
Define trading bloc.
Agreement between countries to reduce or eliminate trade barriers.
What is a single market?
A type of trade bloc with common policies beyond trade barrier removal.
What is globalization?
The worldwide movement towards economic and trade integration.
Define glocalization.
Adapting international products to local cultures.
What is liberalization of trade?
Removal of tariffs and quotas to increase international trade.
What is containerization?
A system for freight transport that reduces shipping costs.
What are multinational companies?
Businesses operating in multiple countries beyond their home country.
What is the European Union (EU)?
A political and economic union of 27 member countries promoting free trade and collaboration.
What is the principle of free movement of goods?
Removal of trade barriers among EU member states.
What is the free movement of labour?
The right of EU citizens to work in any EU country without visas.
What does free movement of capital allow?
EU citizens to open bank accounts, buy shares, and take loans in any EU country.
What is the principle of Free Movement of Labour in the EU?
EU Citizens are entitled to look for work in another EU country and have the right to live and work there without needing Visas or Permits.
What does Free Movement of Capital allow for EU Citizens and Companies?
It allows for bank accounts to be opened in any EU country, shares to be bought in EU-based companies, purchasing assets in any EU country, and taking out loans from any bank within the EU.
What is the Eurozone?
The collective group of countries in the European Union that use the euro as their sole currency.
True or False: The Eurozone includes every country in the European Union.
False.
Fill in the blank: The UK is not in the _______.
Eurozone
What is required for a country to become part of the Eurozone?
The country must use the euro as its sole legal currency.
