Unit 4 Aos 1 Flashcards
(36 cards)
Business Change (DEF)
The alteration of behaviours, policies, and practices of a business.
Successful business Change occurs when
There is good leadership, and the decision is supported by stakeholders
KPI (Key Performance Indicators)
Specific criteria used to measure or evaluate the efficiency and effectiveness in achieving business objectives
Percentage of Market Share KPI
Proportion of sales compared to other businesses in the industry.
Net Profit Figures KPI
The amount left over after costs are subtracted from revenue in a specific period.
Rate of Productivity Growth KPI
Number of outputs given the number of inputs over a period of time (New - Old performance ÷ old performance)
Number of Sales KPI
The quantity of good/services sold in over a period
Rates of Staff Absenteeism KPI
The number of working days where employees are absent when they are scheduled to work (Days absent – total number of staff)
Level of Staff Turnover KPI
Number of staff which leave the business over a specific period (Staff leaving. – Staff Needed)
Level of Wastage KPI
The amount discarded inputs and outputs over a specific period.
Number of Customer Complaints KPI
The number of customers which notified the business of their dissatisfaction during a specific period.
Number of Website Hits KPI
The number of customer visits to a business’s online platform over a specific period.
Number of Workplace Accidents KPI
The number of injuries or unsafe incidences which occur over a specific period.
Managing Change
To remain competitive businesses must anticipate and adjust for change
Proactive Change
Undertakes steps to avoid future problems or to take advantage of an opportunity.
Proactive Change Examples
- Meeting trends
- Fulfilling a gap in the market
- More control
Reactive Change
When the business takes steps to change in response to a situation or crisis
Reactive Change Examples
- Less control
- Business must maintain reputation
Porters’ Generic Strategies
To be competitive, a business should be proactive or strategic and look at either: Reduce costs of production or find a point of difference
Competitive Advantage Def
the conditions or attributes that places a business in a superior position or enables it to achieve a point of difference compared to its immediate competitors.
Low Cost Strategy (Porters)
Involves a business offering customers similar or lower-priced products compared to the industry average
Low Cost Approaches (Porters)
- Charge Similar Price to Competitors
- Charge Slightly Lower Prices
- Charge Much Lower Prices
Low Cost Strategies (Porters)
- Reducing Operating Costs
- Reducing Costs of Supplies
Differentiation Strategy (Porters)
Involves offering customers unique services or product features that are of perceived value to customers and can be sold at a higher price.
