U3AOS1 Flashcards
Define “Business Change “
4A- Business Change
Business Change is the alteration of behaviours, policies, and practices of a business.
Define “Proactive Approach”
4A- Business Change
A proactive approach is when a business changes to avoid future problems or take advantage of an opportunity to gain a competitive advantage
Define “Reactive Approach”
4A- Business Change
A reactive approach is when a business undertakes change in response to a situation or crisis.
Define “Key Performance Indicators”
4B- KPI’s (Part 1)
Key performance indicators are criteria that measure a business’s efficiency and effectiveness in achieving its different objectives.
Define “Percentage of Market Share”
4B- KPI’s (Part 1)
Percentage of Market Share measures the proportion of a business’s total sales, compared to the total sales in the industry, expressed as a percentage figure.
Define “Net Profit Figures”
4B- KPI’s (Part 1)
Net Profit Figures are calculated by subtracting total expenses incurred from total business revenue earned, over a specific period of time.
Define “Rate of Productivity Growth”
4B- KPI’s (Part 1)
Rate of Productivity Growth is the change in total output produced from a given level of inputs over time, expressed as a percentage figure.
Define “Number of Sales”
4B- KPI’s (Part 1)
Number of Sales is the total quantity of goods and services sold by a business over a specific period of time.
Define “Number of Customer Complaints”
4B- KPI’s (Part 1)
Number of Customer Complaints is the number of customers who notified the business of their dissatisfaction over a specific period of time.
Define “Rates of Staff Absenteeism”
4C- KPI’s (Part 2)
Rates of Staff Absenteeism are the average number of days employees are not present when scheduled to be at work, for a specific period of time.
Define “Level of Staff Turnover”
4C- KPI’s (Part 2)
Level of Staff Turnover is the percentage of employees that leave a business over a specific period of time and must be replaced.
Define “Number of Workplace Accidents”
4C- KPI’s (Part 2)
Number of Workplace Accidents measures the amount of injuries and unsafe incidents that occur at a work location over a specific period of time.
Define “Level of Wastage”
4C- KPI’s (Part 2)
Level of Wastage is the amount of inputs and outputs that are discarded during the production process.
Define “Number of Website Hits”
4C- KPI’s (Part 2)
Number of Website Hits is the amount of customer visits that a business’s online platform receives for a specific period of time.
Define “Force Field Analysis”
4D- Force Field Analysis
Force Field Analysis is a theoretical model that determines if businesses should proceed with a proposed change.
Define “Driving Forces”
4D- Force Field Analysis
Driving Forces are factors affecting the business environment that promote and support business change.
Define “Restraining Forces”
4D- Force Field Analysis
Restraining Forces are factors that resist a business change or actively try to stop it.
Define “Weighting”
4D- Force Field Analysis
Weighting is the process of scoring and attributing a value to the driving and restraining forces.
Define “Ranking”
4D- Force Field Analysis
Ranking involves arranging the forces in order of value and determining the total score of driving and restraining forces.
Identify 5 Driving Forces
4E- Driving Forces (Part 1)
- Owners
- Managers
- Employees
- Pursuit of Profit
- Reduction of Costs
Identify 5 Driving Forces
4E- Driving Forces (Part 1)
- Competitors
- Legislation
- Globalisation
- Technology
- Innovation
- Societal Attitudes
Identify 6 Restraining Forces
4G- Restraining Forces
- Managers
- Employees
- Legislation
- Organisational Inertia
- Time
- Financial Considerations
Define “Porter’s Lower Cost Strategy”
4H- Porter’s Generic Strategies
Porter’s Lower Cost Strategy involves a business offering customers similar or lower-priced products compared to the industry averagae, while remaining profitable by achieving the lowest cost of operations amongst competitors.
Define “Porter’s Differentiation Strategy”
4H- Porter’s Generic Strategies
Porter’s Differentiation Strategy involves offering customers unique services or product features that are of percieved value to customers, which can then be sold at a higher price than competitors.