U4: AOS1 (Reviewing Performance)

Question 1

1) What is the concept of Business change?

2) Examples

Answer 1

1) Transitioning employees, functions, or the entire business to a new state of operation.

2)

• Creating different products
• Offshoring
• Implementing new motivation strategies
• New managers/suppliers

Question 2

Why might a Business change?

Answer 2

• Better tailor to customer’s needs
• Improve business
• Avoid redundancy
• Achieve competitive edge

Question 3

1) What is Market Share?

2) How is it calculated?

Answer 3

1) The percentage of an industry or market’s total sales that is earned by a particular business.
2) Calculated by dividing company’s sales by total sales of industry.

Question 4

1) Why might Market Share decrease?

2) How can this be overcome?

Answer 4

1)

• Customers dissatisfied with product
• Competitors gaining competitive edge
• Prices are too high/production too costly

2)

• Implement Quality strategies
• Innovate/change products
• Reduce labour costs

Question 5

1) What are Net Profit Figures?

2) How is it calculated?

Answer 5

1) The amount of money a company has earned after all expenses have been deducted.
2) Calculated by subtracting expenses from revenue.

Question 6

1) Why might Net Profit Figures decrease?

2) How can this be overcome?

Answer 6

1)

• Customers dissatisfied (not buying)
• Prices are too high/production too costly

2)

• Implement Quality strategies
• Lean production techniques (no wastage, reduce costs)
• Innovate/change products

Question 7

1) What is Rate of Productivity Growth?

2) How is it calculated?

Answer 7

1) The efficiency of a company’s production process to effectively create quality products.
2) Calculated by dividing outputs by the amount of inputs used.

Question 8

1) Why might Rate of Productivity Growth decrease?

2) How can this be overcome?

Answer 8

1)

• Machinery is outdated and failing
• Manual labour is not effective
• Delays in input arrivals is blocking productivity

2)

• Investment in new technology
• Increase staff training/motivation
• Improve suppliers/supply chain

Question 9

1) What are Number of Sales?

2) How is it calculated?

Answer 9

1) The total quantity of products/services sold.

2) Adding the total number of products which have been sold to customers.

Question 10

1) Why might Number of Sales decrease?

2) How can this be overcome?

Answer 10

1)

• Customers dissatisfied with product
• Price of product is too high
• Product has not been advertised well

2)

• Implement Quality strategies
• Lower product price and production costs
• Improve marketing techniques

Question 11

1) What are Rates of Staff Absenteeism?

2) How is it calculated?

Answer 11

1) The total number of days employees are absent from work in a specific period.
2) Number of days absent divided by total number of working days

Question 12

1) Why might Rate of Staff Absenteeism increase?

2) How can this be overcome?

Answer 12

1)

• Job dissatisfaction
• Ongoing personal/medical problems

2)

• Increase employee motivation/training
• Staff support (counselling, health practices)

Question 13

1) What are Levels of Staff Turnover?

2) How is it calculated?

Answer 13

1) The amount of employees leaving the business in a particular period of time.
2) Calculated by dividing the number of departed employees by the average number of employees working at one time.

Question 14

1) Why might Levels of Staff Turnover increase?

2) How can this be overcome?

Answer 14

1)

• Dissatisfaction w/ job
• Alluring jobs w/ competition

2)

• Increase employee motivation/training
• Provide support, transitional help (retirement/dismissal)

Question 15

1) What are Levels of Wastage?

2) How is it calculated?

Answer 15

1) The amount of stock (raw materials/equipment) used in processing which gets discarded.
2) Calculation of total weight/volume of waste materials

Question 16

1) Why might Levels of Wastage increase?

2) How can this be overcome?

Answer 16

1)

• Insufficient storage
• Production process is inefficient

2)

• Total Quality Management/recycling practices
• Lean management
• Use new technology

Question 17

1) What are Number of Customer Complaints?

2) How is it calculated?

Answer 17

1) The recorded number of individuals who report a fault, issue or defect with the good/service they received.
2) Calculated by adding the total number of complaints.

Question 18

1) Why might Number of Customer Complaints increase?

2) How can this be overcome?

Answer 18

1)

• Quality of product is declining
• Customer service is declining
• Invest in technology

2)

• Implement Quality strategies
• Staff training/motivation

Question 19

1) What are Number of Workplace Accidents?

2) How is it calculated?

Answer 19

1) The recorded number of worker/customer related injuries that occur in a business.
2) Calculated by adding the total number of accidents.

Question 20

1) Why might Number of Workplace Accidents increase?

2) How can this be overcome?

Answer 20

1)

• Lack of safety training
• Dangerous environment
• Dangerous equipment

2)

• Staff training
• Investment in safety technology

Question 21

What is the concept behind Lewin’s Force Field Theory?

Answer 21

Change is ever present in business. Lewin’s theory determines which forces in the workplace drive and which forces resist proposed changes.

Question 22

1) What are driving forces?

2) Examples

Answer 22

1) Forces which initiate, encourage, and support change to assist the business in achieving its goals.

2)

• Managers
• Employees
• Competitors

Question 23

1) What are restraining forces?

2) What are some examples?

Answer 23

1) Forces which work against change, creating resistance and hindering the achievement of business goals.

2)
- Managers
- Employees
- Time