U4 AOS 1 Flashcards
Business Change
Process of taking the existing business, altering it and establishing a new or modified form
Change - Incremental
Small continuous changes that occur reguraly
e.g New comptuter system
Change - Transformational
Significant changes that impact the whole business
Change - Proactive
A planned change by foreseeing pressures in the business environment and then implementing change to take advantage
Change - Reactive
Where the business is impacted by pressures from the business environment and then respond as a result
Key Performance Indicators
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
KPI - Percentage of Market Share
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
KPI - Net Profit
Amount of money left after all expenses incurred are deducted from revenue earned.
KPI - Rate of Productivity Growth
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
KPI - Number of Sales
Quantity of products or services sold by a business in a period
Allows a business to determine whether they are meeting sales forecasts
KPI - Rates of Staff Absenteeism
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
KPI - Level of Staff Turnover
Measures the number of people or employees permanently leaving a business
Can be reduced by:
Choosing good managers
Providing Support
Offering Training
KPI - Level of Wastage
Indication of the extent to which a companies processes are lean + effective
Level or proportion of waste will give indication on efficiency
KPI - Number of customer complaints
An indicator of how many customers view the business and the quality of the product or service
Compare complaints with the performance of competitors
KPI - Number of Workplace Incidents
Amount of unplanned or uncontrolled events that result in a personal injury or property damage
Force Field Analysis
The process of identifying and analysing the forces that will drive and those that will resist a proposed change
Driving Forces - Define
Forces affecting a situation that are pushing a particular direction and are supporting the goal
Initiate a change and keep it going
Restraining - Define
Forces acting to restrain or decrease the driving forces
Forcefield Analysis Steps
Define target of change
Identify driving + restraining
Analyze the forces
Develop Action Plan
Benefits of Forcefield Analysis
Managers can identify + analyze forces
Helps determine if the change is worth pursuing
Allows actions and timelines to be developed
Driving Forces for Change (PCMETGIRLS)
Pursuit of Profit Competitors Managers Employees Technology Globalisation Innovation Reduction in Costs Legislation Societal Attitudes
Driving Forces - Pursuit of Profit
Implement changes and improvments in an effort to increase sales
Driving Forces - Competitors
Business is always aware of what its competitors are doing and is able to respond to changes quickly
Driving Forces - Managers
Managers have influence on the business and make decisions about the future direction of the business
