U4: AOS1 (Forces for Change) Flashcards
How are Managers driving forces for change?
- Initiate/maintain momentum of change through leadership
- Share vision and inspire others to be role models
How are Employees driving forces for change?
- Influence other employees to embrace change
- Main pursuers/upholders of change through work
How are Competitors driving forces for change?
- Forces business to improve due to competitive edge
- Introduces new practices which may be adopted by business
How is Legislation a driving force for change?
- Enforces that the business adhere to good practices
- Outlines framework for which business can operate
How is Pursuit of Profit a driving force for change?
- Encourages better business performance
- Encourages implementation of better practices
How is Reduction of Costs a driving force for change?
- Encourages higher efficiency through increase of sales and reduction of cost
- Implements improvements to business
How are Managers a restraining force in businesses?
- If change threatens personal beliefs or position, will be influential is restraining change
- Can influence employee opinion, not prioritise tasks
How are Employees a restraining force in businesses?
- Employees may fear the unknown change, fear for job security, fail to see logic/reason in change.
How is Time a restraining force in businesses?
- Implementing decisions/change takes time, which may hinder performance against competitors
How is Organisational Inertia a restraining force in businesses?
- Business may be unable to see need for change due to prior success, and might not implement it (reactive, not proactive decisions)
How is Legislation a restraining force in businesses?
- Laws limit the practices which a business can implement to achieve change
How are Financial Considerations a restraining force in businesses?
- Business needs money to make change. No cash = no change
How is Globalisation a driving force for change?
- Exposure to global competitors = competition increasing performance
- Access to global market = increased sales
- Global manufacturing options = reduce costs, different practices
How is Technology a driving force for change?
- Manufacturing technology = new ways to make products (less costs, innovation)
- Internet + communications = better access, new methods
- Tech helps process be more efficient/effective
How is Innovation a driving force for change?
- Major source of competitive advantage = drives change
How are Societal Attitudes a driving force for change?
- Forced to respond with appeasement to societal attitudes (eg. Women in work, ageing employees, migrants, ethical practices)
1) What is Porter’s ‘Lower Cost’ strategy?
2) Examples of how it might be implemented.
3) How is this effective?
1) Gaining a competitive edge by becoming the lowest cost producer in an industry.
2)
- Bulk buying
- Quicker and more efficient tech
- Lean management
- Offshoring/cheap labour
3) Appeals to cost conscious people
1) 2 Advantages of ‘Lower Cost’ strategy
2) 2 Disadvantages of ‘Lower Cost’ strategy
1)
- Strong competitive advantage
- Ability to generate high profit
2)
- Lower customer loyalty (only care for price)
- May result in low quality/generic product
1) What is Porter’s ‘differentiation’ strategy?
2) Examples how it might be implemented.
3) How is it effective?
1) Gaining a competitive edge by making unique products which are more creative/innovative than competitors.
2)
- Innovate products
- New features (durability, accessibility)
- Unique marketing
3) Appeals to loyal customers
1) 2 Advantages of ‘Differentiation’ strategy
2) 2 Disadvantages of ‘Differentiation’ strategy
1)
- Strong competitive advantage for loyal customers
- Ability to change price (as price is not focus)
2)
- Repels ‘cost conscious’ customers
- Unique features can be copied by competitors
