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Business > U4 AOS 1 > Flashcards

U4 AOS 1 Flashcards

1
Q

Business Change

A

Process of taking the existing business, altering it and establishing a new or modified form

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2
Q

Change - Incremental

A

Small continuous changes that occur reguraly

e.g New comptuter system

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3
Q

Change - Transformational

A

Significant changes that impact the whole business

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4
Q

Change - Proactive

A

A planned change by foreseeing pressures in the business environment and then implementing change to take advantage

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5
Q

Change - Reactive

A

Where the business is impacted by pressures from the business environment and then respond as a result

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6
Q

Key Performance Indicators

A 
Percentage of Market Share
Net Profit
Rate of Productivity Growth
Number of Sales
Rates of Staff Absenteeism
Level of Staff Turnover
Level of Wastage
Number of Customer Complaints
Number of Workplace Incidents
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7
Q

KPI - Percentage of Market Share

A

The portion of sales a business has compared to the total sales in the market
If proportion increases business has a greater percentage of market share compared to others

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8
Q

KPI - Net Profit

A

Amount of money left after all expenses incurred are deducted from revenue earned.

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9
Q

KPI - Rate of Productivity Growth

A

Businesses ability to transform inputs into outputs; the ability of a business to increase outputs for a given level of inputs givens an indication of the rate of growth

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10
Q

KPI - Number of Sales

A

Quantity of products or services sold by a business in a period
Allows a business to determine whether they are meeting sales forecasts

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11
Q

KPI - Rates of Staff Absenteeism

A

Measures the number of times staff are not at work, and who may be using sick or personal leave and not attending the workplace

If staff are absent, costs incur in relation to loss of productivity furthermore contributing to less revenue

Ways to reduce cost of employee absenses:
Track absensces
Help employees return to work

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12
Q

KPI - Level of Staff Turnover

A

Measures the number of people or employees permanently leaving a business

Can be reduced by:
Choosing good managers
Providing Support
Offering Training

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13
Q

KPI - Level of Wastage

A

Indication of the extent to which a companies processes are lean + effective

Level or proportion of waste will give indication on efficiency

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14
Q

KPI - Number of customer complaints

A

An indicator of how many customers view the business and the quality of the product or service

Compare complaints with the performance of competitors

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15
Q

KPI - Number of Workplace Incidents

A

Amount of unplanned or uncontrolled events that result in a personal injury or property damage

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16
Q

Force Field Analysis

A

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

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17
Q

Driving Forces - Define

A

Forces affecting a situation that are pushing a particular direction and are supporting the goal
Initiate a change and keep it going

18
Q

Restraining - Define

A

Forces acting to restrain or decrease the driving forces

19
Q

Forcefield Analysis Steps

A

Define target of change
Identify driving + restraining
Analyze the forces
Develop Action Plan

20
Q

Benefits of Forcefield Analysis

A

Managers can identify + analyze forces
Helps determine if the change is worth pursuing
Allows actions and timelines to be developed

21
Q

Driving Forces for Change (PCMETGIRLS)

A 
Pursuit of Profit
Competitors
Managers
Employees
Technology
Globalisation
Innovation
Reduction in Costs
Legislation
Societal Attitudes
22
Q

Driving Forces - Pursuit of Profit

A

Implement changes and improvments in an effort to increase sales

23
Q

Driving Forces - Competitors

A

Business is always aware of what its competitors are doing and is able to respond to changes quickly

24
Q

Driving Forces - Managers

A

Managers have influence on the business and make decisions about the future direction of the business

25
Q

Driving Forces - Employees

A

Employees can drive change through innovation, and are given more freedom and flexibility, which results in employees coming up with new ideas

26
Q

Driving Forces - Technology

A

Adapting new technology to help at every level of stakeholder

27
Q

Driving Forces - Globalistation

A

Process where economic boundaries are removed, and businesses begin operating on an international scale

Gives access to markets around world
Provides potential for faster business growth

28
Q

Driving Forces - Innovation

A

Changing or creating more effective processes, products or ideas gives a business a competitive edge by keeping up

29
Q

Driving Forces - Reduction in Costs

A

Reducing costs + operating expenses will support the generation of profit even if revenue or sales cannot be increased

30
Q

Driving Forces - Legislation

A

Businesses have to deal with 3 levels of government. Federal, state, local.

31
Q

Driving Forces - Societal Attiudes

A

Changes in opinions values and beliefs

Businesses that fail to adapt these change risk falling behind or not meeting customer needs

32
Q

Restraining Forces (METLOF)

A 
Managers
Employees
Time
Legislation
Organizational Inertia
Financial Considerations
33
Q

Restraining Forces - Managers

A

Managers may refuse to implement proposed changes or fail to actively support it

34
Q

Employees

A

Those who dont feel apart of the business or do not feel appreciated will usually make change difficult

35
Q

Time

A

Businesses that have not planned or have foreseen change in their industry may find they are unable to respond to change quickly

36
Q

Legislation

A

If a business finds that it has to adjust to a change in the law that is unexpected, expensive + difficult to implement, harder for a business to respond quickly

37
Q

Organisational Inertia

A

Businesses lack of ability to respond to pressures and embrace change because it tends to continue on its well entrenched way

38
Q

Financial Considerations

A

Lack of finance and difficulty involved with lending money without a great deal of security prevents change

39
Q

Porters Generic Approach - 3 Steps

A
  1. Swot Analysis
  2. Porters 5 force analysis
  3. Compare Swat + 5 Force Analysis
40
Q

Porters - Low Cost Strategy

A

Where a business is able to gain a competitive advantage by becoming a low cost producer in its industry

Achieved by:
Implementing technology
Preferential access to raw material

Adv: Increase market share, strong competitive advantage
Dissadv: Lowering costs can impact quality, reputation, lower customer loyalty

41
Q

Porters - Differentiation Approach

A

Where the business aims to be unique in its industry in a way that is valued to the customer

Achieved by:
High quality materials
Patents
Relationships

Adv: Customer loyalty, charge premium price,
Dissadv: Unique markets, hard to protect property

Business (7 decks)

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