change

Question 1

change

Answer 1

a planned or unplanned response to both internal and external pressures

Question 2

business change

Answer 2

the adoption of a new idea or behaviour resulting in a difference in the form or operations of a business over time

Question 3

internal change + example

Answer 3

change happening from within the business e.g employees demanding change

Question 4

external change + example

Answer 4

change happening from outside the business e.g. customer expectations/trends

Question 5

radical changes + example

Answer 5

a major alteration of the business often initiated by critical events e.g dramatic drop in financial performance

Question 6

incremental changes + examples

Answer 6

change that occurs more frequently but is less traumatic for the business and is part of its natural development e.g. new systems or products

Question 7

benefits of incremental change

Answer 7

• continuously improving the business
• gain or maintain competitive advantage
• stay in current market place

Question 8

competitive advantage

Answer 8

occurs when a firm, industry or economy has a lower cost price structure than its rivals

Question 9

why is it improtant for businesses to manage change

Answer 9

• all business encounter change whether it’s planned or unplanned
• can determine competitive advantage and long-term survival
• can impact market share

Question 10

proactive

Answer 10

intiating change rather than simply reacting to events

Question 11

proactive approach to change

Answer 11

a manager who forsees alterstions in the business environment and looks to implement planned changes in order to take advantage of the change

Question 12

examples of proactive change

Answer 12

• investing in research to reveal future trends in the market
• developing strategies to gain competitive advantage

Question 13

advantage of proactive change

Answer 13

help a business gain competitive advantage

Question 14

disadvantages of proactive change

Answer 14

• futures always uncertain, business implementing change based on a prediction of future events
• if prediction does not eventuate, the business may have wasted resources

Question 15

disadvantage of reactive change

Answer 15

• failure to react effectively can have a significant negative impact on the impact
• the business risks ‘falling behind the pack’ while their rivals enjoy a ‘first mover advantage’

Question 16

key performance indicators (KPIs)

Answer 16

criterion that businesses can use to measure their success, or efficiency and effectiveness, in areas of the business’ performance.

Question 17

Net profit figures

Answer 17

Profit is what remains after expenses related to operating the business are deducted from revenue earned. Net profit is what is left following further deductions of expenses and taxes

Question 18

Percentage of market share

Answer 18

the businesses share of the total industry sales expressed as a percentage.

Question 19

how is market share calculated

Answer 19

dividing a business’ sales from a market by the total sales of all businesses in the market and expressing it as a percentage

Question 20

rate of productivity growth

Answer 20

productivity is a measure of performance that indicates how many inputs it takes to produce and output

Question 21

what are the 10 KPIs

Answer 21

net profit figures
percentage of market share
rate of productivity growth
number of sales
number of customer complaints
number of website hits
number of workplace accidents
rates of staff absenteeism
levels of staff turnover
level of wastage

Question 22

number of sales

Answer 22

the amount of goods or servuces sold by the business in a given period of time

Question 23

number of website hits

Answer 23

how many potential customers visit its site or engage with its site following an advertisement of link on social media

Question 24

number of workplace accidents

Answer 24

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

Question 25

rates of staff absenteeism

Answer 25

the number of workers who do not show up to work when they are scheduled to do so

Question 26

level of staff turnover

Answer 26

the number of staff who leave or are leaving the busiess and need to be replaced

Question 27

level of wastage

Answer 27

the volume of resources consumed by ineffieicnt or non-essential activities. it is the amount of unwanted material left over, material that doesnt add any value, discharged deposited or emitted to an environment in such quantity that is causes harm or damage.

Question 28

number of customer complaints

Answer 28

number of customers who contact the business to express their disappointment with the business. could be the quality, price, customer service etc

Question 29

force field analysis (FFA)

Answer 29

a tool used to compare forces for and against a particular change so that an informed decision can be made.

Question 30

restraining forces

Answer 30

forces that work against a change and aim to keep the business in its current state

Question 31

driving forces

Answer 31

forces that intitiate, encourage and support change by pushing the business away from its state of status quo and towards the new desired state

Question 32

4 principles of FFA

Answer 32

1. weighting 2. ranking 3. action plan 4. evaluation

Question 33

advantage of FFA

Answer 33

- helps a business look at both the pros and cons of a change before deciding to go ahead - helps spot weak systems that may need to be improved - lets stakeholders share their views on whether they see the change as good or bad

Question 34

disadvantages of FFA

Answer 34

- some forces may be missed or not clearly seen at the time of analysis - the scores given to each force can be bias and subjective - giving people tasks to manage change might require extra training if their skills aren't right or are overestimated

Question 35

how do owners drive change?

Answer 35

- they look for a return on investment - owner's clear visions will demand change to fulfill visions

Question 36

how do managers drive change?

Answer 36

- help position the business for the future - Change based off results of KPIs - fresh ideas on developing the business in the future

Question 37

what change does senior management implmenent

Answer 37

radical change

Question 37

what qualities to managers need to support change

Answer 37

- good leadership - experience in the change process

Question 37

define employees

Answer 37

those that work for a business in exchange for remuneration

Question 37

what change does middle/lower management implement

Answer 37

incremental change