transforming a business Flashcards
define leadership
the ability to influence and and motivate individuals to achieve business objectives
why is leadership important ?
- helps to build momentum towards successful change
- reduces resistance
what are the 8 management strategies
staff training staff motivation change in management style/skills increased investment in technology improved quality in production cost cutting initiating lean production techniques redeployment of resources
define staff training & which KPI’s it applies to
aimed at improving employee skills, knowledge and attitudes allowing employees to perform more efficiently
-applies to number of sales, workplace accidents
advantage and disadvantage of staff training
- decreased customer complaints
- cost of training
define staff motivation & which KPI’s it applies to
concerned with the desire to do things
-applies to staff turnover and customer complaints
advantage and disadvantage of staff motivation
- employees more motivated
- may take time and cost
define change in management & which KPI’s it applies to
influences the performance of a business and culture
-applies to productivity, customer complaints
advantage and disadvantage of change in management
- employees feel more included
- some may not agree
define increased investment in technology & which KPI’s it applies to
technology to can be used to improve business in all forms
-applies to productivity, level of wastage
advantage and disadvantage of increased investment in technology
- less wastage
- cost and new technology
define improved quality in production & which KPI’s it applies to
improving the quality of the end good or service
-applies to customer complaints, no. of sales
advantage and disadvantage of improved quality in production
- better product
- may not please lower price customers
define cost cutting & which KPI’s it applies to
businesses look to reduce costs without decreasing quality
-applies to net profit, productivity
advantage and disadvantage of cost cutting
- increased net profit
- quality may decline
define initiating lean production techniques & which KPI’s it applies to
minimising waste produced in a business
-applies to level of wastage, productivity growth
advantage and disadvantage of lean production techniques
- reduced wastage
- may be hard to find ways to reduce it
define redeployment of resources & which KPI’s it applies to
transfer of resources from one place in a business to another for better use of resources
-applies to productivity, staff turnover
advantage and disadvantage of redeployment pf resources
- save costs, less wastage
- major restructure may cost money
define domestic opportunities
business looks to gain more business within their current country of operating
what are three domestic strategies/overview
- multiple branding; business sells multiple brands in same market
- franchising; allowing someone to set up the same business as yours
- government programs; some provide programs for growing your business
define global opportunities
where the business is looking to gain more business outside their current country of trade
what are two global strategies/overview
- exporting; sending goods to another country
- austrade; government body who help increase Australias trade and education
what is a strategy that helps domestically and globally
developing on online presence; putting business online attracts many new customers but can be costly
define low risk strategies
strategies that help to reduce resistance to change that maintain strong relationships between employee and employer
what are the 4 low risk strategies/overview
- communication; open and honest about the change
- empowerment; involving employees in decision making
- support; supporting employees through the change
- incentives; providing a reward encouraging employees to embrace the change
define high risk strategies
strategies that allow businesses to overcome resistance quickly but could more likely result in negative consequences
what are the 2 high risk strategies/overview
- manipulation; SELECTIVE use of facts or information to make them support the change
- threat; forcing employees to embrace the change or receive retribution
define learning organisation
a business that is flexible, adaptive, productive and aims to have a culture where people work together at their best
what did Peter senge find
that businesses that are more flexible, adaptive and productive excel during times of change
what are the 5 key principles of senge
- systems thinking
- personal mastery
- mental models
- shared vision
- team learning
define systems thinking
ability to see the bigger picture, meaning all principles need to be implanted for one to work. business can evaluate performance overall
define personal mastery
people within the business undertake continual learning working towards self improvement and this increases their skills
define mental models
the existing assumptions held by individuals as to how a business should act, behave and response
define shared vision
being able to develop a vision that the people within the business believe in and all agree with to develop commitment
define team learning
process of aligning and developing capacities of a team to create results the members desire. individuals that learn together will grow more rapidly
advantage and disadvantage of senge
- everyone may already be used to shared vision so would understand benefits better
- time allocated to team learning etc may be expensive and everything must be right for one to work
what is the effect of change on managers
change of management style, loss of employment
what is the effect of change on employees
may alter an employees job, cause them to resist or require training
what is the effect of change on customers
could be positive - improved quality/lowered price or negative - discontinued product
what is the effect of change suppliers
businesses may need to change their suppliers, or suppliers may need to provide them with different materials
what is the effect of change on the general community
if they go to a new location, the are stimulating the local economy
what are the 4 csr affects of changes
- restructure/downsizing; could cause job losses
- suppliers; supporting suppliers and using local suppliers
- changes in technology; consider technology impact on employees
- impact on the environment; changes could increase pollution or harm wildlife
what is Lewins change model used for
change model that businesses can use to implement effective change
what are the three steps in the change model
- unfreeze
- change
- refreeze
describe unfreeze
- identifying what needs to change
- demonstrating a need for change
- challenge current beliefs that resist change
describe change
take out the change, it is important that open communication and support is used to help those that are finding change difficult
describe refreeze
- reinforce the change
- embed into the culture
- evaluate results/make adjustments
how can kpis be used to evaluate changes
they can evaluate their performance, and implement changes to suit it
how do businesses measure their performance
companies can look at the impact of the changes on number of sales, market share and net profit
what were the 4 changes made to Bega cheese
2017-purchased Mondelez grocery brand who own Kraft and Vegemite for $460 million in Port Melbourne
2018-purchase peanut company of Aus in queensland
2018-purchase koroit factory (milk powder) for 250 million in west victoria
2019-close Coburg warehouse because of it being too small for future demand
what KPI’s affect Bega cheese
- percentage market share; expanding into new markets
- net profit; increases due to new sales
what is a driving force and restraining force at Bega of the changes
driving; pursuit of profit / competitors
restraining; financial considerations / employees
what are the domestic and global opportunities of Bega
- domestic; Bega expanded into other food areas and expanded across the country
- global; bega export sales rose 29% and have developed a clear stratergy
what are management strategies that apply to Bega
staff training; due to new methods/business
redeployment of resources; Labour and equipment moved around
what is the effect of change on Bega stake holders
employees; existing employees under new management
suppliers; business requires new materials
