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3/4 Business Management > Unit 4: AOS 1 > Flashcards

Unit 4: AOS 1 Flashcards

1
Q

What is business change?

A
  • Adoption of new idea or behaviour

- Business’ feel the need to change as a result of business environment pressures

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2
Q

What are business environment pressures?

A
  • Economy
  • Employee’s
  • Customers
  • Competitors
  • Technology
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3
Q

What are incremental changes?

A
  • Small continuous changes
  • Occur regularly in the business
    e. g. new process to improve efficiency
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4
Q

What are transformational changes?

A
  • Significant changes
  • Impact whole business
    e. g. merger
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5
Q

What is proactive management?

A
  • Foreseeing changes in the environment and taking advantage
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6
Q

What is reactive management?

A
  • Letting business pressure impact the business before making a change
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7
Q

What is effectiveness?

A
  • Degree in which a business achieves set objectives
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8
Q

What is efficiency?

A
  • Degree in which the business best uses resources to achieve set objectives
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9
Q

What is percentage of market share?

A
  • Business’ share of total sales in an industry for a particular good or service
  • Expressed as a percentage
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10
Q

What is net profit?

A
  • Money left over after expenses have been deducted from revenue earned
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11
Q

What is rate of productivity growth?

A
  • Amount of outputs produced compared to the amount of inputs used
    AND
  • The rate in which it increases over time
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12
Q

What is number of sales?

A
  • Amount of goods/services sold in a specific period of time
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13
Q

What is rate of staff absenteeism?

A
  • Number of employee’s that do not turn up to work when they are expected to be there
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14
Q

What is level of staff turnover?

A
  • Rate in which people leave the business and need to be replaced
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15
Q

What is level of wastage?

A
  • Amount of resources and finished goods discarded throughout the production process
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16
Q

What is number of customer complaints?

A
  • Amount of people dissatisfied with the business and/or its products
  • Have notified the business
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17
Q

What is number of workplace accidents?

A
  • Amount of people injured or nearly injured at work

- Due to unplanned events

18
Q

What is the force-field analysis?

A
  • Process of identifying and analysing the forces that will drive and those that will resist proposed changes
19
Q

Benefits of force-field analysis?

A
  • Managers can identifying and analyse the for/against change
  • Helps determine whether change is worth pursuing
  • Allows managers to develop ways of reducing restraining forces
20
Q

Driving force for change: Managers

A
  • Managers make decisions about the future direction of the business
  • Managers that are strong leaders can drive the business toward change
21
Q

Driving forces for change: Employees

A
  • Can drive change through innovation

- Can place demands on the business to change conditions, policies and processes

22
Q

Driving forces for change: Competitors

A
  • Many industries are highly competitive

- Competition can drive a business to implement changes to gain a competitive advantage

23
Q

Driving forces for change: Legislation

A
  • Changes to laws can force a business to implement change
24
Q

Driving forces for change: Pursuit of profit

A
  • Businesses looking to increase profits may implement business change
    e. g. marketing campaigns
25
Q

Driving forces for change: Reduction of costs

A
  • Reducing costs can help a business to become more profitable
  • A business that has high costs can initiate change
26
Q

Driving forces for change: Globalisation

A
  • Allows business to take control of international markets

- Increases global competition

27
Q

Driving forces for change: Technology

A
  • Businesses may need to implement technology to remain competitive
28
Q

Driving forces for change: Innovation

A
  • Adopting something new or something that already exists

e. g. new production processes

29
Q

Driving forces for change: Societal attitude

A
  • Societal attitudes are constantly changing

- Businesses that fail to keep up with these attitudes risk falling behind

30
Q

Restraining forces for change: Managers

A
  • Managers may not be able to lead a business through change
  • Middle/lower managers may not support changes proposed by senior managers
31
Q

Restraining forces for change: Employees

A
  • Change can bring on fear or anxiety causing resistance

- If employees haven’t been consulted or do not feel appreciated they may resist change

32
Q

Restraining forces for change: Time

A
  • Businesses may find a lack of time to successfully implement change
  • May be under pressure by competitors and need to act quickly
33
Q

Restraining forces for change: Organisational inertia

A
  • Management that is unenthusiastic to change make it difficult to gather momentum toward change
  • Business’ lack of ability to respond to pressures and embrace change
34
Q

Restraining forces for change: Legislation

A
  • May block or make it difficult to implement change

- ACCC may block a proposed merger if it feels it will reduce competition in the market

35
Q

Restraining forces for change: Financial considerations

A
  • Immediate or long term costs of a proposed change may make it difficult for change to be implemented successfully
36
Q

What is a restraining force?

A
  • Those that work against change and aim to create resistance.
  • A range of different forces which work against change
  • Such as time and financial considerations
37
Q

What is a driving force?

A
  • Those that work toward encouraging and initiate change

- A range of different forces aim to push change such as managers, employee’s and legislation

38
Q

5 Competitive Forces

A
  • Supplier power: how easy it is for suppliers to rive costs up
  • Buyer power: how powerful buyers are in driving prices down
  • Competitive rivalry: looks at te number and capability of competitors
  • Threat of substitution: how easy it is for customers to find a similar good or service
  • Threat of new entry: how easy it is for new competitors to enter the market
39
Q

What is lower cost strategy?

A
  • Business looks to gain a competitive advantage by reducing costs in primary and support activities
  • Business’ will look at all activities and determine where costs can be reduced
40
Q

What is differentiation?

A
  • Business looks to offer something unique to its customers
  • By creating unique goods/service it will increase demand within consumers as they will not be able to get the features elsewhere

3/4 Business Management (8 decks)

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