Unit 4 Aos 1

Question 1

Business Change (DEF)

Answer 1

The alteration of behaviours, policies, and practices of a business.

Question 2

Successful business Change occurs when

Answer 2

There is good leadership, and the decision is supported by stakeholders

Question 3

KPI (Key Performance Indicators)

Answer 3

Specific criteria used to measure or evaluate the efficiency and effectiveness in achieving business objectives

Question 4

Percentage of Market Share KPI

Answer 4

Proportion of sales compared to other businesses in the industry.

Question 5

Net Profit Figures KPI

Answer 5

The amount left over after costs are subtracted from revenue in a specific period.

Question 6

Rate of Productivity Growth KPI

Answer 6

Number of outputs given the number of inputs over a period of time (New - Old performance ÷ old performance)

Question 7

Number of Sales KPI

Answer 7

The quantity of good/services sold in over a period

Question 8

Rates of Staff Absenteeism KPI

Answer 8

The number of working days where employees are absent when they are scheduled to work (Days absent – total number of staff)

Question 9

Level of Staff Turnover KPI

Answer 9

Number of staff which leave the business over a specific period (Staff leaving. – Staff Needed)

Question 10

Level of Wastage KPI

Answer 10

The amount discarded inputs and outputs over a specific period.

Question 11

Number of Customer Complaints KPI

Answer 11

The number of customers which notified the business of their dissatisfaction during a specific period.

Question 12

Number of Website Hits KPI

Answer 12

The number of customer visits to a business’s online platform over a specific period.

Question 13

Number of Workplace Accidents KPI

Answer 13

The number of injuries or unsafe incidences which occur over a specific period.

Question 14

Managing Change

Answer 14

To remain competitive businesses must anticipate and adjust for change

Question 15

Proactive Change

Answer 15

Undertakes steps to avoid future problems or to take advantage of an opportunity.

Question 16

Proactive Change Examples

Answer 16

• Meeting trends
• Fulfilling a gap in the market
• More control

Question 17

Reactive Change

Answer 17

When the business takes steps to change in response to a situation or crisis

Question 18

Reactive Change Examples

Answer 18

• Less control
• Business must maintain reputation

Question 19

Porters’ Generic Strategies

Answer 19

To be competitive, a business should be proactive or strategic and look at either: Reduce costs of production or find a point of difference

Question 20

Competitive Advantage Def

Answer 20

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.

Question 21

Low Cost Strategy (Porters)

Answer 21

Involves a business offering customers similar or lower-priced products compared to the industry average

Question 22

Low Cost Approaches (Porters)

Answer 22

• Charge Similar Price to Competitors
• Charge Slightly Lower Prices
• Charge Much Lower Prices

Question 23

Low Cost Strategies (Porters)

Answer 23

• Reducing Operating Costs
• Reducing Costs of Supplies

Question 24

Differentiation Strategy (Porters)

Answer 24

Involves offering customers unique services or product features that are of perceived value to customers and can be sold at a higher price.

Question 25

Differentiation Strategies (Porters)

Answer 25

• High Quality Products
• Multiple Branding
• Innovation/ R&D
• Creating New Features
• Niche Marketing
• Advertising

Question 26

Lewin’s Force Field Analysis (FFA)

Answer 26

A model that determines whether a business should go through with a change (in theory)

Question 27

Driving Forces Def FFA

Answer 27

Factors promoting change.

Question 28

Driving Forces Examples FFA

Answer 28

• Owners
• Managers
• Employees
• Competitors
• Legislation
• Pursuit of profit
• Reduction costs
• Globalisation
• Technology
• Innovation
• Societal Attitudes

Question 29

Restraining Forces Def FFA

Answer 29

Factors which impede or resist change or actively try to stop it.

Question 30

Restraining Forces Examples FFA

Answer 30

• Managers
• Employees
• Time
• Organisational Inertia
• Legislation
• Financial Considerations

Question 31

Force Field Analysis Steps FFA

Answer 31

1. Weighting the forces
2. Ranking the forces
3. Implementing a response
4. Evaluating the response

Question 32

1. Weighting the forces

Answer 32

Process of scoring and attributing value to the forces

Question 33

2. Ranking the forces

Answer 33

Arranging forces according to their value, driving forces must outweigh restraining forces.

Question 34

3. Implementing a response

Answer 34

Action taken to strengthen driving forces, weaken restraining forces, and implement the change

Question 35

3. Implementing a response (Action Plan)

Answer 35

What needs to be done, who is responsible, resources required, deadline(s), how to strengthen/weaken forces

Question 36

4. Evaluating the response

Answer 36

Process of determining success of change by using KPI’s.
Involves measuring the actual change against the anticipated change