SAC 1B

Question 1

Five Forces Analysis

Answer 1

Supplier Power
Buyer Power
Competitive Rivalry
Threat of Substation
Threat of New Entry

Question 2

Supplier Power

Answer 2

The fewer suppliers and the more unique the product is, suppliers have the power to influence price, as well as the availability of resources/inputs.

Question 3

Buyer Power

Answer 3

The fewer buyers, the more power the buyers have over the suppliers to negotiate lower prices and/or better quality inputs.

Question 4

Competitive Rivalry

Answer 4

The more competitive a businesses are within the market, it is harder for a business to gain a competitive advantage, therefore making the product more unique and important.

Question 5

Threat of Substitution

Answer 5

When customers find an alternative product from another business.

Question 6

Threat of New Entry

Answer 6

When new competitors enter into an industry offering the same products or services, a company’s competitive position will be at risk.

Question 7

Porter’ Generic Strategies

Answer 7

When businesses are looking for a competitive advantage. Lower Cost and Differentiation.

Question 8

Lower Cost

Answer 8

This is where a manager decides that the business will aim to become the lowest cost producer of a product. For example introduce new technology to produce products faster with less waste therefore reducing costs. A company has a cost advantage when it can produce a product or provide a service at a lower cost than its competitors.

Question 9

Differentiation

Answer 9

A business can make their good or service seems to have a unique point of difference from it’s competitions. For example it could be based on the product itself, the delivery or the marketing. Attracts more customers.

Question 10

SWOT Analysis

Answer 10

Gathering information to decide whether change should be implemented:
Strengths
Weakness
Opportunities
Threats

Question 11

Force Field Analysis Theory

Answer 11

Weighing
Ranking
Implementing a Response
Evaluating the Response

Question 12

Weighing

Answer 12

Weighing refers to the value or strength that is assigned to each driving and restraining forces identified. If the value of the driving forces outweighs the value of the restraining then the change is likely to be successful.

Question 13

Ranking

Answer 13

Rank forces in order of most powerful to least powerful (driving and restraining).
This can create a better understanding of which forces can strengthen or minimise/eliminate.

Question 14

Implementing a Response

Answer 14

Having an action plan on how to increase the strength of driving forces and reducing the strength of restraining forces.

Question 15

Evaluating the Response

Answer 15

Once the actions have been implemented a review of the effectiveness of these actings is required, this provides the business with a clear understanding of what the businesses will be faced with if they implement change.

Question 16

Driving Forces

Answer 16

Owners
Managers
Employees
Innovation
Globalism
Competitors
Legislation
Technology
Pursuit of profit
Reduction of costs
Societal attitudes

Question 17

Restraining Forces

Answer 17

Managers
Employees
Legislation
Time
Organisational Inertia
Financial Considerations

Question 18

Steps in Performing a Force Field Analysis

Answer 18

1. Define your goal or vision for change
2. Identify forces for change (driving forces)
3. Identify forces against change (restraining forces)
4. Assign scores - score each force according to the degree of influence each one has on the plan, and then add up the scores for each side (for and against)

Question 19

High Risk Strategies

Answer 19

• Manipulation
• Treat

Question 20

Manipulation

Answer 20

When a manager or leader doesn’t give all the information to employees to make them agree to a change. This can backfire as it can create less trust within the workplace and employees will want to do the opposite if they find out.

Question 21

Threat

Answer 21

This is when a leader or manager uses force to the employees to accept a change. This is to insure that the change will take place quickly. For example a manager could say that if they don’t agree with the change it could affect the amount they are paid .

Question 22

Low Risk Strategies

Answer 22

• Communication
• Empowerment
• Support
• Incentive

Question 23

Communication

Answer 23

This is when there is a open and honest relationship and conversation that can reduce anxiety for employees.

Question 24

Empowerment

Answer 24

This when a leader or manager is giving employees power in regards to designing or implementing the change. This can create less resistance when it comes to employees accepting the change because they have a say in how the change will be implemented.

Question 25

Support

Answer 25

Change may alter an employees job therefore altering training and other services that support employees. Give them time to adjust to the changes to their job.

Question 26

Incentives

Answer 26

Offering employees special benefits to support the change. This can decrease the amount of resistance towards the change.

Question 27

Three Step Change Model

Answer 27

Unfreeze, Changing, Refreeze

Question 28

Unfreeze

Answer 28

Unfreezing is when management should prepare the business for change by analysing driving and restraining forces and communicating the benefits of the change as well as restrictions.

Question 29

Change

Answer 29

Then changing stage involves the implementation of the change, which involves clear goals. This stage can take time, therefore communication and support are important to create a space that they can embrace the change.