Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

business > unit 4 AOS 1 > Flashcards

unit 4 AOS 1 Flashcards

reviewing performance - the need for change

1
Q

what is a business change?

A

Business change is the process of making alterations of behaviours, polices and practices of a business

any alteration in the internal or external environments

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

why is change important?

A

to achieve business objectives

to remain competitive

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

what is a proactive approach?

A

a situation where a change is planned and occurs before a business is affected by pressures in their environment.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

what is a reactive approach?

A

when a change is unplanned, and takes place after the business had been affected by the pressures from its environment

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

what are key performance indicators?

A

specific criteria used to measure the efficiency and/or effectiveness of a business’s performance

used to analyse a businesses performance

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

what are the KPS?

A

Percentage of market share

Net profit figures

Rate of productivity growth

Number of sales

Rate of staff absenteeism

Level of staff turnover

Level of wastage

Number of customer complaints

Number of website hits

Number of workplace accidents

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

what is the KPI Percentage of market share?

A

The businesses share of the total industry sales for a particular good or service, expressed as a percentage

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

what is the KPI Net profit figures

A

The amount of money left over after all expenses have been deducted from revenue earned

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

what is teh KPI Rate of productivity growth

A

The amount of outputs produced compared to the amount of inputs used and the rate in which it increases overtime

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

what is the KPI Number of sales

A

A measure of the amount of goods or services (products) sold in a specified period of time

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

what is the KPI Rate of staff absenteeism

A

The number of staff who do not turn up for work when they are scheduled to do so

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

what is the KPI Level of staff turnover

A

The number or the rate, of employees who are leaving the business over a specific period of time, and need to be replaced by new employees

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

what is the KPI Level of wastage

A

The amount of unwanted or unusable material created by the production process of a business

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

what is the KPI Number of workplace accidents

A

The amount of unplanned or uncontrolled events that result in personal injury or property damage at a business

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

what is the KPI Number of website hits

A

Measures the amount of times individuals visit a businesses website

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

what is Lewin’s force field analysis about?

A

Kert Lewin developed a model that helped managers understand the factors that worked in support of a change and those that worked against the change

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

what is the KPI Number of customer complaints

A

The number of customers expressing their dissatisfaction with the business, in either spoken or written form

14
Q

what is driving forces

A

Forces that encourage and support a change

▪ Customers 
▪ Legislations 
▪ Changes in technology

Driving factors are factors affecting the business environment that promote and support business change - they work to encourage, and initiate change

Successful change is more likely to occur when driving forces outweigh the restraining forces of a proposed change

15
Q

what is restraining forces?

A

Forces that work against the change
▪ Financial considerations
▪ Employee resistance
▪ Time
▪ Managers

Restraining forces are those that work against a change. They make it difficult to implement a change successfully.

16
Q

what are the four key principals of the force field analysis?

A
  1. weighting
  2. ranking
  3. Implementing a response
  4. Evaluating the response
17
Q

what is the weighting principal about?

A

the process of scoring and attributing a value to the driving and restraining forces

· Identify the driving forces that promote the change and restraining forces that resist the change

· For each force, a weight is assigned to it to determine the level of impact each force can potentially have on the change

18
Q

what is the ranking principal about?

A

arranging the forces in order of value and determining the total score of driving and restraining forces

Ranking helps determine which driving forces could be strengthen and which restraining forces could be removed or minimised

19
Q

what is the Implementing a response principal about

A

developing an action plan to reduce the strength of the restraining forces and increase the strength of the driving forces

· The action plan details what needs to be done, who is responsible, the resources required and deadlines for task completion

20
Q

what is the evaluating the response principal about

A

determining whether or not the change has been successfully implemented

Evaluate the response to determine its effectiveness.

A business can use KPIs to measure the success of the change in achieving business objectives

21
Q

what are some disadvantages of the force field analysis

A

The weightings of the forces are subjective. Biases can emerge when determining the importance of a particular force.

Assigning responsibility to people to manage aspects of the change may result in a need for training as the skills of people may be lacking or overestimated.

22
Q

what are some advantages of the force field analysis

A

Businesses are able to weigh up the factors ‘for and against’ and whether the change is worth undertaking.

It allows a business to identify and strengthen the driving forces supporting the change and to take action to reduce or eliminate the restraining forces.

Force Field Analysis allows stakeholders to identify the change as a positive or negative change from their perspective.

23
Q

how can owners act as a driving force?

A

Owners act as a driving force for change if they believe it will be beneficial to future business performance

Owners have a vested interest in the ability of their business to meet objectives and continue to adapt

owners can initiate change in a business

24
Q

how can managers act as a driving force

A
  • Managers act as a driving force for change when the proposed change will enhance the business ability to meet objectives

When a manager is in support of a change, they can encourage successful change implementation

Managers ensure that business performance is being optimised and objectives are being achieved

25
Q

how can employees act as driving force

A

Employees can instigate change in a business by driving improvements in processes, product features..etc

Employees can act as a driving force for proposed changes that would improve their work environment

Employees are responsible for achieving business objectives

26
Q

how can competitors act as a driving force

A
  • Competitors can drive change through: opening a new business; pricing policies; use of new technology; marketing

The competitive nature of a business can initiate change in a business as they compete for customers

27
Q

how can managers act as a restraining force

A

Managers can be a restraining force when they are unwilling to introduce a business change if they do not support the change

28
Q

how can employees act as a restraining froce

A

employees can be a restraining force if the outcome is uncertain, they fear they cannot adapt or if it impacts job security of work routine

fear of the unknown

29
Q

how can time act as a restraining force

A

Business change often had to be completed before, after or within a certain time period

30
Q

what is Porter generic strategies

A

Porter’s Generic Strategies can help determine the strategic direction required for business change

porters generic staregies is an approach where a business can gain a competitive advantage by implementing the lower cost or differenetiation strategy

31
Q

what are the two startegies of porters startegic manageent

A

Porter proposed that businesses can gain a competitive advantage by adopting:

- Lower costs
- Differentiation
32
Q

what is the lower cost staregy

A

The lower costs strategy is where a business gains a competitive advantage by being the low cost producer in the industry

- This strategy is suitable where industries have a large number of cost-conscious customers who have little brand loyalty and will choose to purchase from the cheapest supplier

- A competitive advantage is gained through reducing the costs of the business, allowing it to operate with larger profit margins compared to market rivals
33
Q

what are some advabatges of the low cost staregy

A
  • A business may become more profitable, as profit per unit can increase
  • Gains competitive advantage
  • A business may save money on some costs to allow expansion or development of new lines
  • Savings can be put towards differentiation at a later date
33
Q

what are some disadvantages of the low cost staregy

A
  • Sales may fall as customers may perceive a product as being of poor quality

A business may lose its market share if other businesses copy the low-cost approach

33
Q

what is the differention strategy

A

Differentiation is where a business gains a competitive advantage by being unique in some way that is valued by customers

- 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 

- Through differentiation, a business will make their product different, unique or superior in some way to gain a competitive advantage 

- This strategy is suitable for customers who are not price sensitive and/or customers who have specific needs that are currently either unmet or under-served
34
Q

what are some advantages of the differentiation straetgy

A
  • Differentiation is way to improve the way a business connects with customers, and can develop customer loyalty
  • By developing customer loyalty, market share can be increased
  • Gains competitive advantage
35
Q

what are some disadvantages of the differentiation strategy

A
  • Rival businesses can copy differentiated approach, negating any gains
  • Differentiation has an initial cost that must not outweigh the benefits
  • Differentiation can be a time-consuming process, and, during that time, consumer tastes or preferences may change
  • Often more expensive to be unique

business (3 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions