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BUSINESS MANAGEMENT > transforming a business > Flashcards

transforming a business Flashcards

1
Q

define business change

A

the adoption of a new idea or behaviour where businesses change as a result from pressures of the business environment

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2
Q

define incremental changes

A

small continuous changes that occur regularly in the business EG. new process

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3
Q

define transformational changes

A

significant changes that often impact the whole business EG. company restructure

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4
Q

define proactive

A

foreseeing changes in the dynamic environment and taking advantage

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5
Q

define reactive

A

letting business environments impact a business before changes are made

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6
Q

define key performance indicators

A

specific set of criteria that measure the efficiency and effectiveness of a business performance

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7
Q

what are the 9 key performance indicators

A 
net profit 
percentage market share 
level of wastage 
number of workplace accidents 
number of sales 
number of customer complaints 
level of staff turnover 
rate of staff absenteeism
rate of productivity growth
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8
Q

define benchmarking

A

being able to compare results against some form of standard

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9
Q

define driving forces

A

those that initiate or support change. push the business towards a new desired state

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10
Q

what are the 10 driving forces

A 
managers
employees
legalisation
innovation
pursuit of profit 
competitors 
reduction of costs 
technology 
societal attitudes 
globalisation
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11
Q

managers (DF)

A

make decisions, can initiate change after analysis of KPI data

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12
Q

employees (DF)

A

drive change through innovation by placing demands on the business to change

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13
Q

competitors

A

competition can make a business change in order to gain a competitive advantage

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14
Q

legalisation (DF)

A

changes to laws can force a business to change

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15
Q

pursuit of profit

A

businesses are always looking to increase profit and gain money

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16
Q

reduction of costs

A

businesses have high costs, which can initiate change to lower costs and gain money

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17
Q

globalisation

A

process where economic boundaries are removed and businesses operate on an international scale

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18
Q

technology

A

businesses need to keep up with technology to remain competitive

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19
Q

innovation

A

adopting something new or improving on something that exists already

20
Q

societal attitudes

A

businesses need to keep up with customer attitudes to keep their sales up

21
Q

define restraining forces

A

those that work against a proposed change

22
Q

what are the 6 restraining forces

A 
managers
employees
time
organisational interia 
legalislation 
financial considerations
23
Q

managers (RF)

A

middle or lower management may not support the change made by senior management

24
Q

employees (RF)

A

change can bring on feelings of anxiety or for people that don’t want to change which can cause resistance

25
Q

time

A

businesses may not have enough time to implement change successfully

26
Q

organisational interia

A

a businesses lack to embrace change. they ,ay be used to doing things certain way and therefore resist it

27
Q

legalisation (RF)

A

may block or make it difficult for businesses to change things they want

28
Q

financial considerations

A

businesses may not have enough money to implement the change

29
Q

define force field analysis

A

process of identifying and analysing the forces that will drive and those that will resist a proposed change

30
Q

what are the steps to implement force field analysis

A
  1. define target of change
  2. identify driving and restraining forces
  3. analyse forces to be changed (scores)
  4. develop an action plan
31
Q

what are 2 benefits of the force field analysis

A
  • managers able to identify whether it will be successful or not
  • allows mangers to find ways of reducing restraining forces
32
Q

define the lower cost strategy

A

where a business is able to gain a competitive advantage by becoming the low cost producer in the industry

33
Q

how can businesses achieve lower cost stratergy

A

achieving economies of scale, implementing technology

34
Q

define value chain

A

set of activities a business performs to add value to a good or service

35
Q

strength of lower cost strategy

A

strong competitive advantage in markets with “price conscious” consumers

36
Q

weakness of lower cost stratergy

A

potentially lower customer loyalty because customers are only price sensitive

37
Q

define the differentiation strategy

A

where the business aims to be unique in its industry in some way valued by its customers

38
Q

how can differentiation be achieved

A

high quality materials
marketing
innovations

39
Q

strength of differentiation

A

strong competitive advantage in markets with brand loyalty

40
Q

weakness of differentiation

A

unique features can be copied or mimicked by other producers

41
Q

what 5 factors should businesses consider before deciding on a stratergy

A
  • rivalry amongst existing competitors
  • bargaining power of supplies
  • entry of new competitors
  • threat of substitutes
  • bargaining power or buyers
42
Q

define rivalry amongst existing competitors

A

if a business has many competitors, they may have reduced market attractiveness

43
Q

define bargaining power of suppliers

A

how easy it is for suppliers to drive up the price of the item to supply to a business

44
Q

define entry of new competitors

A

markets that are profitable will always attract new competitors, therefore they will always have new competitors to go against

45
Q

define threat of substitutes

A

some businesses operate in environments where close substitutes exist e.g.. coke

46
Q

define bargaining power of buyers

A

businesses need to consider how easy it is for buyers to reduce prices e.g.. bulk prices

BUSINESS MANAGEMENT (6 decks)

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