BUSMANCHAP4

Question 1

internal factors

Answer 1

business has somewhat control over

Question 2

external factors

Answer 2

they have no control over

Question 3

Business change

Answer 3

adoption of a new idea or behaviour by a business to gain competitive advantage

Question 4

Competitive advantage

Answer 4

selling goods and services at a lower cost price than the competition

Question 5

pro active

Answer 5

• change is planned n occurs before bus is affected by pressures in env

-more effective-allows bus to gain competitive adv

-allows bus to be prepared so it doesnt dramaticay impact bus

Question 6

Reactive approach to change

Answer 6

• after the business has been affected by the pressures in its environment
• Less effective , as the business has already been affected by the change, which may have caused a loss in productivity or sales due to the failure to recognize that the change

Question 7

Key Performance Indicators (or KPIs):

Answer 7

specific criteria used to measure the efficiency and effectiveness of a business’ performance.

Question 8

Some typical KPIs:

Answer 8

• Percentage of market share
• Net profit figures
• Rate of productivity growth
• Number of sales
• Rates of staff absenteeism
• Level of staff turnover
• Level of wastage
• Number of customer complaints
• Number of website hits
• Number of workplace accidents

Question 9

Percentage of Market Share (high)

Answer 9

a business’ share of the total sales of a particular product within an industry (versus their competitors’ shares)

Question 10

Net Profit Figures (high)

Answer 10

what profit remains after all expenses have been subtracted from a business’ revenue, including taxes, interest and depreciation.

Question 11

Rate of Productivity Growth:

Answer 11

compares changes to the above explanation from one year to the previous year (Has it grown? How much by?)

Question 12

Productivity:

Answer 12

measure of efficiency indicating how many resources (inputs) it takes to produce an output (goods or services).

Question 13

Number of Sales:

Answer 13

the amount of g&s a business sells in a given period of time.

Question 14

Rate of Staff Absenteeism:

Answer 14

number of workers who do not turn up for work when they are scheduled to do so.

Question 15

Level of Staff Turnover:

Answer 15

number of employees who are leaving the business over a period of time, and then need to be replaced by new employees.

Question 16

Level of Wastage:

Answer 16

amount of unusable or unwanted material created by the production process.

Question 17

Number of Customer Complaints:

Answer 17

number of customers who contact the business to express their disappointment with the business.

Question 18

Number of Website Hits:

Answer 18

when a website, or files within a website, receive a visitor.

Question 19

Number of Workplace Accidents:

Answer 19

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

Question 20

Lewin’s Force Field Analysis theory

Answer 20

outlines the process of determining which forces drive, and which forces resist, a proposed change.

Question 21

Driving forces -

Answer 21

forces that support a change and work to assist the business in achieving its goal.

Question 22

Restraining forces -

Answer 22

forces that work against a change.
They create resistance and hinder the achievement of the goal.

Question 23

driving forces

Answer 23

• customers
  -legislation
  changes in tech
• opportunities to enter new market

Question 24

restraining forces:

Answer 24

• financial considerations
• employee resistance
• time
• leg
• org in
• managers

Question 25

In Force Field Analysis theory

Answer 25

driving forces must be greater than the restraining forces or the change will not occur.

Question 26

How to perform a Force Field Analysis:

Answer 26

1. weighting 2. ranking 3. implementing a response 4. evaluating the response

Question 27

How to perform a Force Field Analysis: - weighting

Answer 27

Identify the driving and restraining forces and list them on either side of the proposed change or goal. and give each a score of how strong or influential each force is

Question 28

How to perform a Force Field Analysis: - ranking

Answer 28

rank the top 3 to 5 most driving forces and the top 3 to 5 most restraining forces. need to either strengthen or eliminate in order to allow the change to occur.

Question 29

How to perform a Force Field Analysis: implementing a resonse

Answer 29

action plan to then list the actions that are needed to be completed to achieve the proposed change - assign responsibility for each action.

Question 30

How to perform a Force Field Analysis: Evaluating the response

Answer 30

review and evaluate how successful the response has been.

Question 31

adv and dis of force field analysis

Answer 31

allows bus to dentify an strenghten driving forces supporting change and to take action to reduce or liminate restraining factors timelines may be subjective and not consider unexpextd events

Question 32

driving forces for change

Answer 32

-innovation -competitors - reduction in costs -employees

Question 33

restraining forces in business

Answer 33

- managers -time -organisational inertia - employees -legislation -financial considerations

Question 34

Porter’s Generic Strategies

Answer 34

Responding to competition, a busimay want to gain its own competitive adv. Porter identified two categories

Question 35

Cost advantage - competitive advantage is

Answer 35

gained through reducing the costs of the business, allowing it to operate with larger profit margins compared to its market rivals.

Question 36

Differentiation advantage - competitive advantage is

Answer 36

gained through differentiating their good or service from others in the market.

Question 37

Lower Cost Strategies - cost leadership

Answer 37

seeking to become the business with the lowest costs in the market.

Question 38

lower cost strat strategies that a business could use to achieve lower cost include:

Answer 38

Reducing direct and indirect costs: reducing wages, cost of interest, reducing cost of supplies/stock, Sourcing cheaper utility suppliers Improving efficiency: minimising idle stock on shelves, using assets more efficiently Controlling areas of management responsibility: checking and reviewing areas of the business n Implementing strategies at those levels to reduce costs.

Question 39

adv and dis of low cost strat

Answer 39

bus may save money on some costs to allow expansion or dev of new lines sales may fall as customers may percieve a product as being poor quality

Question 40

Product differentiation -

Answer 40

uses factors such as brand names, delivery methods, and advertising to establish differences between substitutable products. Making product different, unique, or superior in some way will give you the competitive edge and allow your business to market itself as a leader in that industry.

Question 41

Some strategies that a business could use to differentiate its product include:

Answer 41

High-quality products: ensuring quality is better than that of competitors, e.g. more durable, more reliable, providing better support, offering extended warranties Multiple branding: providing different brands or more brands in the same market - providing similar products with very subtle differences that would appeal to different customers Innovation/ Research and Development: developing a product with unique features that no other business currently produces - identifying a market that is not yet filled

Question 42

adv and dis of differentiation strat

Answer 42

by developing customer loyalty, market share can be increased rival bus can copy differentiated approach, negating any gains

Question 43

(restraining factors) managers:

Answer 43

- poorly timed -hasty decisions, unclear - lack experience n skills to overse transformation

Question 44

(restraining factors) employees:

Answer 44

-worried they cannot adapt -job losses

Question 45

driving: owners and managers:

Answer 45

- change to maintain sales profit market share

Question 46

restraining legislation

Answer 46

-restricts certain things

Question 47

driving globalisation

Answer 47

remain viable and competitive