Driving forces Flashcards
Define driving force
Driving forces are the factors that initiate, support or push for change in a business.
Define managers as a driving force
Managers have the responsibility of ensuring the business is improving performance and achieving its objectives. Managers will act as an internal driving force for change as they have a vested interest in the business being successful. If a business is performing well and achieving objectives, this will reflect positively on the manager.
Define employees as a driving force
Employees are responsible for achieving business objectives. Employees are paid a wage or salary in exchange for their labour as they assist a business to achieve business objectives.
Employees may initiate change that supports their role or workplace conditions, such as work-life balance policies
Define competitors as a driving force
Competitors are the rival business in the same industry that business must monitor their behavior and activity in order to stay relevant. Competitors are a driving force for change as a business must always adapt to remain competitive.
Define legislation as a driving force
Legislation refers to the laws and legal regulations set by governments and courts that a business must follow. New legislation acts as a driving force for change as a business must alter its policies and practices to comply with the new law, to avoid penalties or business closure.
Define pursuit of profit as a driving force
refers to the businesses desire to attain profit by either reducing expense or increase revenue.
Define reduction of cost as a driving force
Businesses aim to improve effectiveness and efficiency. If costs and operating expenses are increasing over time, it will be more difficult for a business to achieve its objective of making a profit and may drive a business to change.
Define globalisation as a driving force for change
refers to the movement across nations of trade, investment and labour due to the removal of trade barriers. Offers access to latest innovation, lower transport expenses and unrestricted trade which creates a singular market that is on a world-wide scale.
Define technology as a driving force
Technology is the practical application of science to achieve a business objective. Constant improvements to technology can drive a business to make changes. Technology allows a business to operate more efficiently and improve productivity and to increase its competitiveness.
Define innovation as driving force
Innovation involves improving or changing an existing product or process.
Innovation may be driven by new technology or the desire to remain competitive.
Define societal attitudes as a driving force
Societal attitudes are the collective values, beliefs and views of the general public. (note: broader than customers) The changing opinions, values and lifestyles of society drive businesses to change.
