Unit 4 Area of Study 1 Flashcards
what is business change
- change is any alteration in internal and external environment
- adopts a new idea or behaviour as a result
- change is also relative
Difference between proactive and reactive change
- one difference between is that proactive change foresees change
- in contrast reactive change lets the change impact the business before making a change
- another difference is the proactive change uses KPI results to identify possible problems
Definition of KPI’s (5 points)
- used to evaluate performance
- KPI’s are criteria used to measure success
- Measure efficiency and effectiveness
- measure a particular area of business performance
- provides data that drives change for a business
what is a force fields analysis theory/ key principles
a model that describes how you can determine which forces drive and which resist proposed change
- driving forces initiate encourage and support change
- Restraining forces work against the change, creating resistance
- any business looking to implement change must consider the forces
how can something be a driving force and a restraining force
- Managers are considered driving forces as they support and initiate change in the business
- vested interest
- internal driving forces as incentivise push for change
- considered restraining forces as they may be unwilling to introduce change
Use a contemporary business and define forces on how it has effected the business - 4 marks
- The Chief Executive Officer of NAB announced a net profit of $5.8 billion
- 2000 new jobs
- external driving force of technology as implementing technology will help NAB remain competitive
- loss of 6000 jobs in the next 3 years
- due to employees concerned about job security from tech developments
effectiveness
-indicates to what degree a business has accomplished the objectives it set out to achieve
Efficiency
refers to how well a business uses the resources needed to achieve a goal.
Percentage of market share (KPI)
-ratio refers to the business’s share of the total industry sales for a particular good or service, expressed as a percentage
Net profit figures (KPI)
profit is what remains when expenses related to operating the business are deducted from the revenue earned
Rate of productivity growth
-Productivity is a measure of performance that indicates how many inputs (resources) it takes to produce an output (good or services
Number of Sales (KPI)
-Number of Sales of a product is a measure of the amount of goods or services sold by a business in a given period of time
Rate of Staff absenteeism (KPI)
measures the number of workers who neglect to turn up for work
Level of Staff turnover (KPI)
-can also be used as an indicator of the degree of staff satisfaction
Level of wastage (KPI)
-can be considered the volume of resources consumed by inefficient or non-essential activities, the amount of unwanted material left over from a production process
Number of Customer complaints
-refers to the number of customers who contact the business to express their disappointment with the business
Number of workplace accidents
refers to any unplanned event that results in personal injury or property damage
Process for conducting a force field analysis
- Form a guiding group
- Outline the change process
- Identify the driving and/or restraining forces
- Prioritise the top restraining and driving forces/eliminate or strength these
- List actions required and assigned responsibility
Benefits of a force field analysis
- able to weigh up for and against for whether the change is worth
- allows the business to focus on positives and reduce and eliminate the restraining force
limitations of force field analysis
- The identification of the driving and restraining forces may omit some forces
- weightings of the forces may be subjective
what is porters generic strategy
- michael porter
- competitive advantage may occur when business has a lower cost price structure
the porters generic strategy appoarch
- cost advantage, reducing costs or altering costs of the business
- Differentiation advantage, business gains a competitive advantage through making products different from others
