Unit 4 AOS 1

Question 1

Change

Answer 1

Change is any alteration in the internal or external environments.

Question 2

Business Change

Answer 2

Business change is the adoption of a new idea or behaviour by a business.

Question 3

Proactive

Answer 3

To be proactive is to initiate change rather than simply to react to events

Question 4

Reactive

Answer 4

To be reactive is to wait for a change to occur and then respond to it

Question 5

Effectiveness

Answer 5

Effectiveness is the degree to which a business has achieved its stated objectives

Question 6

Efficiency

Answer 6

Efficiency refers to how well a business uses resources to achieve objectives

Question 7

Key Performance Indicators

Answer 7

Key performance indicators are specific criteria used to measure the efficiency and effectiveness of the business’s performance.

Question 8

Percentage of Market Share

Answer 8

Percentage of market share refers to the business’s share of the total industry sales for a particular good or service, expressed as a percentage

Question 9

Net Profit

Answer 9

Net profit is what remains when expenses are deducted from the revenue earned

Question 10

Productivity

Answer 10

Productivity is a measure of performance that indicates how many inputs (resources) it takes to produce an output (goods or services

Question 11

Rate of Productivity growth

Answer 11

The rate of productivity growth measures the change in productivity in one year compared to the previous year

Question 12

Number of Sales

Answer 12

The number of sales of a product is a measure of the number of goods or services (products) sold

Question 13

Rate of Staff Absenteeism

Answer 13

Rate of staff absenteeism measures the number of workers who neglect to turn up for work when they are scheduled to do so.

Question 14

Staff Turnover

Answer 14

Staff turnover measures the number of staff leaving the business

Question 15

Level of Wastage

Answer 15

The level of wastage measures the amount of waste created by the production process

Question 16

Customer Complaints

Answer 16

Customer complaints indicate whether or not customers are satisfied with the performance of the business.

Question 17

Number of Workplace accidents

Answer 17

The number of workplace accidents indicates how safe the workplace is for employees.

Question 18

Benchmarking

Answer 18

Benchmarking occurs when a business measures its performance against that of other leading businesses known for their excellence

Question 19

Force Field Analysis

Answer 19

Force Field Analysis outlines the process of determining which forces drive and which resist a proposed change.

Question 20

Driving Forces

Answer 20

Driving forces are those forces that support the change.

Question 21

Restraining Forces

Answer 21

Restraining forces are those forces that work against the change.

Question 22

Internal Environment

Answer 22

The internal environment refers to the factors inside the business.

Question 23

External Environment

Answer 23

The external environment includes those things over which the business has little control. It may be divided into an operating environment and a macro environment.

Question 24

Operating Environment

Answer 24

A business’s operating environment refers to the outside factors with which the business directly interacts in the course of conducting its business.

Question 25

Macro Environment

Answer 25

The macro environment is made up of the broad factors in the economy and society within which the business operates.

Question 26

Globalisation

Answer 26

Globalisation is the movement across nations of trade, investment, technology, finance and labour brought about by the removal of trade barriers.

Question 27

Innovation

Answer 27

Innovation is a process that occurs when something already established is improved upon.

Question 28

Niche Market

Answer 28

A niche market is a narrowly selected market segment within a larger market.

Question 29

Organisational Inertia

Answer 29

Organisational inertia refers to an unenthusiastic response from management to proposed change.

Question 30

Competitive Advantage

Answer 30

Competitive advantage occurs when a firm, industry or economy has a lower cost price structure than its rivals. In this situation, goods and services can be sold more cheaply, undercutting competitors, and expanding domestic and foreign sales. The concept can also be extended to product quality range and flexibility in adapting to new trends in the market.

Question 31

Product Differentiation

Answer 31

Product differentiation refers to the use of brand names and advertising to establish differences between substitutable products.