U3AOS1

Question 1

Define “Business Change “

4A- Business Change

Answer 1

Business Change is the alteration of behaviours, policies, and practices of a business.

Question 2

Define “Proactive Approach”

4A- Business Change

Answer 2

A proactive approach is when a business changes to avoid future problems or take advantage of an opportunity to gain a competitive advantage

Question 3

Define “Reactive Approach”

4A- Business Change

Answer 3

A reactive approach is when a business undertakes change in response to a situation or crisis.

Question 4

Define “Key Performance Indicators”

4B- KPI’s (Part 1)

Answer 4

Key performance indicators are criteria that measure a business’s efficiency and effectiveness in achieving its different objectives.

Question 5

Define “Percentage of Market Share”

4B- KPI’s (Part 1)

Answer 5

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.

Question 6

Define “Net Profit Figures”

4B- KPI’s (Part 1)

Answer 6

Net Profit Figures are calculated by subtracting total expenses incurred from total business revenue earned, over a specific period of time.

Question 7

Define “Rate of Productivity Growth”

4B- KPI’s (Part 1)

Answer 7

Rate of Productivity Growth is the change in total output produced from a given level of inputs over time, expressed as a percentage figure.

Question 8

Define “Number of Sales”

4B- KPI’s (Part 1)

Answer 8

Number of Sales is the total quantity of goods and services sold by a business over a specific period of time.

Question 9

Define “Number of Customer Complaints”

4B- KPI’s (Part 1)

Answer 9

Number of Customer Complaints is the number of customers who notified the business of their dissatisfaction over a specific period of time.

Question 10

Define “Rates of Staff Absenteeism”

4C- KPI’s (Part 2)

Answer 10

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.

Question 11

Define “Level of Staff Turnover”

4C- KPI’s (Part 2)

Answer 11

Level of Staff Turnover is the percentage of employees that leave a business over a specific period of time and must be replaced.

Question 12

Define “Number of Workplace Accidents”

4C- KPI’s (Part 2)

Answer 12

Number of Workplace Accidents measures the amount of injuries and unsafe incidents that occur at a work location over a specific period of time.

Question 13

Define “Level of Wastage”

4C- KPI’s (Part 2)

Answer 13

Level of Wastage is the amount of inputs and outputs that are discarded during the production process.

Question 14

Define “Number of Website Hits”

4C- KPI’s (Part 2)

Answer 14

Number of Website Hits is the amount of customer visits that a business’s online platform receives for a specific period of time.

Question 15

Define “Force Field Analysis”

4D- Force Field Analysis

Answer 15

Force Field Analysis is a theoretical model that determines if businesses should proceed with a proposed change.

Question 16

Define “Driving Forces”

4D- Force Field Analysis

Answer 16

Driving Forces are factors affecting the business environment that promote and support business change.

Question 17

Define “Restraining Forces”

4D- Force Field Analysis

Answer 17

Restraining Forces are factors that resist a business change or actively try to stop it.

Question 18

Define “Weighting”

4D- Force Field Analysis

Answer 18

Weighting is the process of scoring and attributing a value to the driving and restraining forces.

Question 19

Define “Ranking”

4D- Force Field Analysis

Answer 19

Ranking involves arranging the forces in order of value and determining the total score of driving and restraining forces.

Question 20

Identify 5 Driving Forces

4E- Driving Forces (Part 1)

Answer 20

• Owners
• Managers
• Employees
• Pursuit of Profit
• Reduction of Costs

Question 21

Identify 5 Driving Forces

4E- Driving Forces (Part 1)

Answer 21

• Competitors
• Legislation
• Globalisation
• Technology
• Innovation
• Societal Attitudes

Question 22

Identify 6 Restraining Forces

4G- Restraining Forces

Answer 22

• Managers
• Employees
• Legislation
• Organisational Inertia
• Time
• Financial Considerations

Question 23

Define “Porter’s Lower Cost Strategy”

4H- Porter’s Generic Strategies

Answer 23

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.

Question 24

Define “Porter’s Differentiation Strategy”

4H- Porter’s Generic Strategies

Answer 24

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.