u4 aos1 Flashcards
business change
the alteration of behaviours, policies, and practices of a business
proactive approach
when a business changes to avoid future problems or take advantage of an opportunity to gain a competitive advantage
reactive approach
when a business undertakes change in response to a situation or crisis
key performance indicators (KPIs)
criteria that measure a business’s efficiency and effectiveness in achieving its different objectives
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
net profit figures
calculated by subtracting total expenses incurred from total business revenue earned, over a specific period of time
rate of productivity growth
the change in the total output produced from a given level of inputs over time, expressed as a percentage figure
number of sales
the quantity of goods and services sold by a business over a specific period of time
number of customer complaints
the number of customers who notified the business of their dissatisfaction over a specific period of time
rate of staff absenteeism
the average number of days employees are not present when scheduled to be at work, for a specific period of time
level of staff turnover
the percentage of employees that leave a business over a specific period of time and must be replaced
number of workplace accidents
measures the amount of injuries and unsafe incidents that occur at a work location over a specific period of time
level of wastage
the amount of inputs and outputs that are discarded during the production process
number of website hits
the amount of customer visits that a business’s online platform receives for a specific period of time
force field analysis
a theoretical model that determines if businesses should proceed with a proposed change
driving forces
factors affecting the business environment that promote and support business change
restraining forces
factors that resist a business change or actively try to stop it
weighting
the process of scoring and attributing a value to the driving and restraining forces
ranking
involves arranging the forces in order of value and determining the total score of driving and restraining forces
driving forces.
managers, employees, pursuit of profit, reduction of costs, competitors, legislation, technology, innovation, societal attitudes
restraining forces.
managers, employees, legislation, organisational inertia, time, financial considerations
organisational inertia
the tendency for a business to maintain established ways of operating
porter’s lower cost strategy
involves a business offering customers similar or lower-priced products compared to the industry average, while remaining profitable by achieving the lowest cost of operations among competitors
porter’s differentiation strategy
involves offering customers unique services or product features that are of perceived value to customers, which can then be sold at a higher price than competitors
