Unit 4 outcome 1.1

Question 1

Change

Answer 1

Any alternation in the internal or external environments

Question 2

Business change

Answer 2

The adoption of new ideas or behaviour

Question 3

Proactive

Answer 3

To initiate change rather than simply to react to events

Question 4

Reactive

Answer 4

To wait for a change to occur and then respond it

Question 5

Efficiency

Answer 5

How well a business uses resources to achieve objectives

Question 6

Effectiveness

Answer 6

The degree to to which a business achieved its stated objectives

Question 7

Key performance indicators

Answer 7

Specific criteria used to measure the efficiency and effectiveness of the business’s performance

Question 8

Driving forces

Answer 8

Those forces that support the change

Question 9

Restraining forces

Answer 9

Those forces that work against the change

Question 10

Percentage of market share

Answer 10

The business’s share of the total industry sales for a particular good or service, expressed as a percentage. It is calculated by dividing a business’s sales by the total sales of all businesses in that industry and expressing this as a percentage.

Question 11

Net profit figures

Answer 11

What remains when expenses related to operating the business are deducted from the revenue earned.

Question 12

Rate of productivity growth

Answer 12

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

Question 13

Number of sales

Answer 13

A measure of the amount of goods or services (products) sold by the business in a given period of time.

Question 14

Rate of staff absenteeism

Answer 14

A measures the number of workers who neglect to turn up for work when they are scheduled to do so

Question 15

Level of staff turnover

Answer 15

It measures the number of staff who are leaving the business, for whatever reason, and need to be replaced

Question 16

Level of wastage

Answer 16

The amount of unwanted or unusable material created by the production process of a business

Question 17

Number of customer complaints

Answer 17

Refers to the number of customers who contact the business to express their disappointment with the business — the goods or service purchased, the quality, price or the customer service received.

Question 18

Number of workplace accidents

Answer 18

Refers to any unplanned event that results in personal injury or property damage at the workplace that is reported to management.

Question 19

List Driving forces

Answer 19

Innovation, Societal attitudes, Managers, Employees, Technology, Competitors, Legislation, Pursuit for profit, Reduction of costs, Globalization

Question 20

List Restraining forces

Answer 20

Manager, Employee, Legislation, Time, Financial consideration, Organizational inertia

Question 21

Forces field analysis theory (Lewin)

Answer 21

1)Outlines the proposed change
2)Identifying the driving forces
3)Identifying restraining forces
4)Analyse each force to determine their strength ( Giving rank out of 5)
5)Create an action plan to help reduce the strength of restraining forces and even possibly increase the strength of the driving force

Question 22

Limitations of a Force Field Analysis

Answer 22

Difficult to identify all forces (make it difficult to plan effectively)

Weighting are subjective which can influence decision making

Question 23

Benefits of a Force Field Analysis

Answer 23

Managers are able to identify and analyse the forces for and against the change

Can help determine if the change is worth pursuing

Allow actions and timelines to be developed so restraining forces can be reduced

Question 24

Managers

Answer 24

Managers have the responsibility of operating a profitable or successful business.

Question 25

Employees

Answer 25

Employees working for a business expect to be paid fairly, trained properly and treated ethically in return for their vital contribution to production.

Question 26

Legislation

Answer 26

Laws can be passed that require a business to stop doing something or to start doing something. It is a legal requirement for businesses to comply with the law or face substantial fines or even imprisonment of individuals

Question 27

Pursuit of profit

Answer 27

All businesses, regardless of size, need to earn a profit, of which they return a portion to owners/shareholders.

Question 28

Reduction of costs

Answer 28

A business will incur a range of costs. Supplies, materials, utility costs, government charges and taxes, interest and other finance costs and wages are all costs associated with operating a business.

Question 29

Globalisation

Answer 29

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

Question 30

Technology

Answer 30

Technology allows a business to operate its processes and practices more efficiently and effectively, cutting costs and improving productivity.

Question 31

Innovation

Answer 31

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

Question 32

Societal attitudes

Answer 32

Society’s attitudes about what is right and wrong are constantly changing and this affects the ways in which businesses operate.

Question 33

Time

Answer 33

Time allows people to think about the change, accept it, and implement it.

Question 34

Organisational inertia

Answer 34

refers to a business’s inactivity or lack of response when faced with proposed changes.

Question 35

Financial considerations

Answer 35

The immediate and long term costs of a proposed change may make it difficult for the change to be implemented successfully