Unit 4 AOS 1 Flashcards
Change
Change is any alteration in the internal or external environments.
Business Change
Business change is the adoption of a new idea or behaviour by a business.
Proactive
To be proactive is to initiate change rather than simply to react to events
Reactive
To be reactive is to wait for a change to occur and then respond to it
Effectiveness
Effectiveness is the degree to which a business has achieved its stated objectives
Efficiency
Efficiency refers to how well a business uses resources to achieve objectives
Key Performance Indicators
Key performance indicators are specific criteria used to measure the efficiency and effectiveness of the business’s performance.
Percentage of Market Share
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
Net Profit
Net profit is what remains when expenses are deducted from the revenue earned
Productivity
Productivity is a measure of performance that indicates how many inputs (resources) it takes to produce an output (goods or services
Rate of Productivity growth
The rate of productivity growth measures the change in productivity in one year compared to the previous year
Number of Sales
The number of sales of a product is a measure of the number of goods or services (products) sold
Rate of Staff Absenteeism
Rate of staff absenteeism measures the number of workers who neglect to turn up for work when they are scheduled to do so.
Staff Turnover
Staff turnover measures the number of staff leaving the business
Level of Wastage
The level of wastage measures the amount of waste created by the production process
Customer Complaints
Customer complaints indicate whether or not customers are satisfied with the performance of the business.
Number of Workplace accidents
The number of workplace accidents indicates how safe the workplace is for employees.
Benchmarking
Benchmarking occurs when a business measures its performance against that of other leading businesses known for their excellence
Force Field Analysis
Force Field Analysis outlines the process of determining which forces drive and which resist a proposed change.
Driving Forces
Driving forces are those forces that support the change.
Restraining Forces
Restraining forces are those forces that work against the change.
Internal Environment
The internal environment refers to the factors inside the business.
External Environment
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.
Operating Environment
A business’s operating environment refers to the outside factors with which the business directly interacts in the course of conducting its business.
Macro Environment
The macro environment is made up of the broad factors in the economy and society within which the business operates.
Globalisation
Globalisation is the movement across nations of trade, investment, technology, finance and labour brought about by the removal of trade barriers.
Innovation
Innovation is a process that occurs when something already established is improved upon.
Niche Market
A niche market is a narrowly selected market segment within a larger market.
Organisational Inertia
Organisational inertia refers to an unenthusiastic response from management to proposed change.
Competitive Advantage
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.
Product Differentiation
Product differentiation refers to the use of brand names and advertising to establish differences between substitutable products.
