OUTCOME 2 Flashcards
(95 cards)
1
Q
Why is leadership important if change is going to occur?
A
People naturally resist change
- clear vision created
- communicated to all stakeholders
- good leadership will get all stakeholders “on the same page” and working towards a common goal
- support those that find the change difficult by displaying empathy and good listening skills, this helps leaders to understand their concerns and work towards reducing resistance for change from stakeholders
- leaders, in times of change, need to be enthusiastic, charismatic and can inspire workers to share their vision
2
Q
What are the 5 strategic imperatives needed to transform the business so that its empowering to employees rather than exhausting?
A
INSPIRE WITH A PURPOSE: transformation needs to connect with a deeper and broader purpose
TO GO ALL IN: think about initiatives
ENABLE PEOPLE WITH THE KEY ABILITIES TO THOROUGH OUT AND BEYOND THE TRANSFORMATION: give people the tools and skills they will need along the way.
INSTILL A CULTURE OF CONTINUOUS LEARNING
LEADER NEEDS TO BE INCLUSIVE AND HOLD PEOPLE ACCOUNTABLE FOR POSITIVE OUTCOMES OR RESULTS:
Two way communication, listen and take ideas on board, have a vision
3
Q
What needs to be present in order to change to be successful?
A
A strong sense of urgency
Communication and culture
Leadership
Proactive approach ( even if ‘on top’, change needs to occur to stay competitive and stay ‘on top’)
Do not wait for external forces to make change
4
Q
Define leadership
A
Leadership is the process of positively influencing and encouraging individuals to set and achieve objectives. It is the ability of a manger to inspire and motivate employees towards the achievement of business objectives. Leaders cultivate a sense of stability and effective leadership can decrease resistance to change.
5
Q
Outline some qualities a leader needs to have and actions they need to take
A
- display empathy, listen to staff and hear their fears
- support its staff and treat staff well
- inspire commitment and loyalty though actions and words
- communicate a clear vision
- resolve conflicts
- show confidence in people
- delegate and share their authority and power
- understand that change can lead to stress for staff
- open mind and communicate ideas freely
6
Q
Three attributes necessary for effective leadership
A
DIAGNOSING:
Being able to understand the situation as it is now and knowing what could be expected in the future
ADAPTING:
Being able to modify behavior and other resources to help close any performance gaps
COMMUNICATING:
Exchanging information with others
7
Q
Define staff training
A
Refers to changing employee behavior and job performance. It emphasizes immediate improvement in job performance by enhancing specific knowledge and skills of employees. Staff training can be on the job or off the job training.
8
Q
What kpis can apply to staff training
A
- number of customer complaints
- productivity
- staff absenteeism
- staff turnover
9
Q
Describe the impact of staff training
A
- better knowledge in employees leads to improved customer service
- better skills in employees leads to quicker production and better quality of production and less wastage
- feeling of being valued leads to staff motivation
- opportunities for employee group to develop together, leads to increase motivation
- gain a competitive advantage
10
Q
Define staff motivation
A
Staff motivation is the level of energy, commitment and creativity that employees bring to their jobs. If key performance indicators are not meeting benchmarks, then a manager might decide that they need to motivate their employees to improve performance.
11
Q
Staff motivation can apply to the following KPIs
A
- productivity
- increase market share
- reduce number of complaints
- increase net profit
- reduce staff turnover and staff absenteeism
12
Q
Describe the impact of staff motivation
A
- willingness to work harder on existing tasks which leads to improved productivity and improved customer service
- willingness to contribute additional effort which leads to increased productivity and innovation and business opportunities
- willing to enhance their skills (staff) which leads to less wastage, quicker production and better quality
13
Q
Change in management styles or management skills can apply to the following KPIs
A
- growth in productivity (employees more motivated if consultative)
- Level of staff turnover (decrease due to increased morale if 2 way communication)
- performance increases if management skills improve, resulting in a decrease in customer complaints and an increase market share and sales
14
Q
Change in management styles, the impact of this strategy
A
- a new consultative management will therefore be likely to allow employees to express their ideas and develop new ways of doing things (innovation), resulting in an improvement of productivity
- change in management skills can improve performance
- use of 2 way communication can result in improved staff morale
- managers who delegate more get the most out of their employees and improve performance
- quicker resolution of problem due to delegation (in response to issues and complaints etc
15
Q
How can businesses invest in technology?
A
- website development
- CAM and CAD
- automated production line
- advertising and marketing
- robots
16
Q
Increased investment in technology can apply to the following KPIs
A
- productivity growth
- decrease customer complaints
- increase number of sales
- decrease number of work accidents
- increase market share
- lower wastage
17
Q
Describe the impact investment in technology would have
A
- improve performance of a business
- improve workplace safety
- boost productivity
- enhance quality
- improve efficiency
- enable more output to be produced
- can be expensive but the return hopefully makes it worth it
18
Q
How can businesses improve quality?
A
A business can improve quality by implementing and introducing quality strategies into its operations system. For example quality control, quality assurance or total quality management. These strategies can help increase effectiveness and reduce defects in goods and services
19
Q
What KPIs can apply to improving quality
A
Productivity: ensuring all employees are working at a high quality and ensuring resources are used efficiently and effectively
Number of sales: better quality product= greater customer satisfaction= increased sales
Number of customer complaints: zero defects= complaints will decrease
20
Q
Describe the impact of improving quality in production
A
- it has an overall impact of ensuring a good or service is sold at a high quality with zero defects
- increases customer satisfaction and gains competitive advantage
- increase customer satisfaction will increase sales, profit and market share (business objectives)
21
Q
Define cost cutting
A
Cost cutting are the management strategies that focus on reducing expenses in the business operations. It can include lowering salary costs, reducing wastage or looking for cheaper supplier inputs
22
Q
What KPI’s can apply to cost cutting
A
Net profit figures; lowering salary costs, outsourcing and overseas manufacturing, these will reduce costed and increase profit
Level of wastage; costs cutting can include reducing wastage by using lean production/lean management
23
Q
Describe the impact of cost cutting
A
- reducing costs—increased profit—-increased net profit figure
- can be negative impacts towards the final output’s quality
- employees jobs may be cut— redundancies
24
Q
Define the term lean production
A
Is a management approach to operation that attempts to improve efficiency and therefore effectiveness by eliminating all types of waste and inefficiencies that do not add value to the overall good or service. This is aimed at being done while providing a high quality product.
25
Key principles of lean management
- strive for perfection
- focus on maintaining value
- reduce wastage
26
What KPIs can apply to initiating lean production techniques?
- productivity rate---more efficient use of resources
- net profit----- reduced wastage
- customer complaints---higher quality
- number of sales---higher quality
- level of wastage--- targets TIM WOOD
27
Describe the impact of lean production techniques
- Has an overall affect on lowering costs by;
- reducing wastage which allows for more efficient use of resources--- lowers costs
- also cuts unnecessary processes that dont add value which reduces costs
- helps maintain a high quality product by focusing on parts of the operations that add value
- increased revenue and increased customer satisfaction
28
Define the term redeployment of resources
is the transfer of resources from one place to another. These main resources include natural, capital and labour. Resources will be redeployed so that better use can be made of them, more efficient. Its better for a business to do this as to properly utilise employees.
29
What KPIs can apply to redeployment of resources
- level of wastage- as resources are now being used more
- productivity rate-- as resources are being used more efficiently
- net profit figure-- more effective use of resources
30
how can labour, natural and capital resources be redeployed
natural: raw materials can be used for different purposes
labour: moving employees from one role to another, allows retain talented employees and put staff in roles they can perform well in
capital: old machinery can be redeployed to other areas
31
Describe the impact redeployment of resources has
- money is tied up in resources
- reduces costs;
- more efficiently using resouces
- leads to a reduction in waste
- business more effective
32
List four domestic management strategies to seek new business opportunities
- multiple branding
- product differentiation
- franchising
- services offered by the government
33
List three global management strategies to seek new business opportunities
- online shopping
- austrade
- exporting
34
Define multiple branding and provide advantages and disadvantages
Multiple branding is a strategy where one business sells multiple brands in the same market. An example can be observed within the shampoo market where there are numerous brands and very few companies.
An ADVANTAGE:
- one business has more shelf space and competitors have less
- One company can saturate the market
- Fills all price and quality gaps by providing cheaper options
- caters for brand switching-- customers who swap brands frequently
DISADVANTAGE:
- businesses may receive backlash and customers may feel the business is only after profit
35
Define product differentiation
- product differentiation is a strategy where a business will use brand names and advertising to establish some key differences between their product and a substitute product. Designing and marketing help the product stand out.
36
Services offered by the government
State governments can assist businesses to find business opportunities. Eg. The Future Industries Manufacturing programs offer financial support for Victorian businesses
37
Define online shopping
Many businesses offer customers the ability to browse available goods and services via the internet, order good or service, purchase, pay online and organised the shipment of goods. This can be achieved through building a website or through social media
38
Define austrade
Austrade is the Australian Trade and Investment Commission. The role of this government body is to advance Australia's international trade and education, investment and tourism interests by providing businesses with information and support
- austrade allows businesses to access info about trading internationally
39
Define domestic opportunities
Are where the business is looking to gain more business within their current country by operating
40
Define global opportunities
Are where the business is looking to gain more business outside their current country of operations.
41
Define exporting, positives and negatives
Where a business sends their good or service to another country for sale.
+ this can open up new markets and greatly increase sales
- there can be extra red rape or taxes involved
42
Positives and negatives of austrade
positives:
- austrade establishes connections for Australian businesses
- makes use of global trade experts
negatives:
- can be costly to set up an agent and distributor of products
43
Positives and negatives of developing an online presence
```
positives;
- this can open up new markets
- sell to a global market
negatives;
- can be costly to set up
- need to find new distribution channels
```
44
Provide some examples of the different forms resistance can take
- an increase in the number of people that opt out or request a transfer
- a persistent reduction in output from the employee
- hostility towards managers or leaders of change
- the constant expression of why the change will not work in the business
45
List four low risk strategies
- COMMUNICATION
- EMPOWERMENT
- SUPPORT
- INCENTIVES
46
Define communication as a low risk strategy
being open and honest with employees can help to reduce the anxiety of the employees and help them see the reasons for the change and the impact it will have on them. Communication is also about education, where the change agent demonstrates the benefits of the change. This helps employees to appreciate the logic behind the change and can potentially result in their support for the change. Communication should be two-way so that employees can express concerns and have their questions answered.
47
Define empowerment as a low risk strategy
Is where the employees are given the power or authority to be involved in the change process. This means employees can help to design and implement the changes. This can greatly reduce any resistance as the employees are less likely to go against decisions they have been involved in making. Empowering employees allows a greater 'buy in' and they can become a powerful driving force for the change.
48
Define support as a low risk strategy
Providing emotional and functional support for employees that are facing hardships due to the change
- appropriate support should be provided for those whos job are being altered or terminated either through training or redeployment services to assist them in finding new employment
- employees who are staying with the business post change need to be listened to and given time to adjust
- employees who need to undertake new processes or change positions should be given support through training
49
Define incentives as a low risk strategy
- negotiating with resistors and offering them incentives can help to gain support for the change
- this could involve offering trade-offs that provide special benefits in exchange for the reassurance that the change will not be blocked
- an example would be the promise of improved working conditions (such as longer breaks or better staff facilities) or financial incentives (such as higher wages or performance bonuses)
50
Define high risk strategies
High risk strategies are implemented to reduce the resistance of change however they generate a greater change of negative outcomes. Strategies such as manipulation and threat can harm relationships between management and employees and can cause conflict within the business. The benefit of high risk strategies however is that they can be quick in getting employees to accept the change.
51
Describe manipulation as a high risk strategy
Manipulation is where the business or change agent will use covert tactics to influence employees. Management might secretly leak information to employees or provide only some of the facts so that the change is able to gain support.
- Some business may even 'buy off' some of the leaders of the resisters (for example by giving a promotion) so that the change gains support
- Manipulation is a high risk strategy because if employees discover that they have been manipulated, it can not only cause resistance to change but damage their relationships with management to the longer term detriment of the culture and performance of the business.
52
Describe threat as a high risk strategy
a threat is where the business will use force to get employees to accept the change. Employees can be threatened with a number of undesirable consequences such as a loss of promotion, transfer or loss of benefits that have not been written down in the workplace agreement.
- Although this is a fast strategy, it can erode positive relationships that have been previously formed.
- employees might accept the change on the surface but genuinely be unhappy and resentful
- can have a negative impact on workplace morale, work ethic, and performance of the business over time
53
Positives and negative of communication as a low risk strategy
+ employees becomes informed and can have their questions answered
- it can be time consuming when there are lots of employees to communicate with
54
Positives and negatives of empowerment as a low risk strategy
+ new and fresh ideas on the change and how it should be implemented
- conflict when there are different ideas and time consuming due to lots of discussions about the best way to move forwards
55
Positives and negatives of support as a low risk strategy
+ Employees are given time to adapt to the change, employees see support of others which helps develop a strong culture
- it can be time consuming and sometimes expensive to provide this support
56
Positives and negatives of incentives as a low risk strategy
+ employees feel as though they are valued
| - employees are only supporting change because they have been given something in return, it can also be expensive
57
Positives and negatives of manipulation as a high risk strategy
+ gaining support can be quick and inexpensive
| - it can cause conflict and greater resistance if employees find out they were manipulated
58
Positives and negatives of threats as a high risk strategy
+ very quick to over power resistance
| - can harm relationships, if employees are strong or have a strong union it can cause NASTY conflict
59
Define 'the learning organisation'
The learning organisation is a concept developed by Peter Senge which states that when a business continually transforms itself and is flexible, adaptive and productive they will excel during times of rapid change. There are five key principles to the learning organisation; systems thinking, personal mastery, mental models, shared vision and team learning
60
Define systems thinking
Systems thinking is the cornerstone of the learning organisation. It assess the business a a whole rather than in individual parts. One area of the business will impact another and it is important that managers understand these interrelationships. Each of the other four principles need to be put in p;ace because they work together.
61
An example for systems thinking
If a business has a goal to increase profits, a strategy may be to purchase cheaper materials . The business must look at the business as a whole and the impacts this strategy could have.
62
Define personal mastery
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Where individuals are committed to developing themselves. Individuals create a vision for themselves and are committed to following their passion. Senge states that those that have high levels of personal mastery are more committed, take more initiative and have a deeper responsibility in their work. Encouraged to challenge status quo and learn.
STRATEGIES INCLUDE:
- training and development
- Performance management
- career progression
```
63
Define mental models
Mental models are the generalizations, assumptions and belief that people have. The mental models shape how people behave because they affect the way they see things. In order to learn and grow as a business, it is important that the mental models of the people within the business are understood and challenged so that they can be challenged in what they do.
64
Define shared vision
Working towards a common cause that they believe in. The shared vision provides a focus for the people within the business on where they are heading. Having a shared vision creates commitment to the cause rather than simple compliance.
65
Define team learning
Is where individuals come together as a team to learn and grow together. Teams that are aligned will move in the one direction and although individuals will have different skills and knowledge, the team will be able to work well together and work together.
66
What are the three different types of leaders in the learning organisation
DESIGNERS; being able to design purpose, vision and core values. Key areas of design in the business are policies, strategies and systems and senge argues that no one has more influence than the designer of these elements.
STEWARDS: leaders look after and protect the vision rather than own it. Senge found that leaders learn to see their own vision as part of something larger, like a plane steward look after their passengers
TEACHERS: being able to foster an environment where learning is for everyone and people learn from eachother. Leaders focus on the purpose of the business which allows them to understand what the business and it's people are wanting it to become.
67
Define corporate social responsibility
Corporate social responsibility refers to when a business goes above and beyond legal requirements to benefit the community, the environment or the business's own economic performance. This can be simplified as considerations of 'people, place and profit', thus when implementing change, a business must consider how the change impacts employees (and other stakeholders), the community and the environment
68
How would you implement CSR when downsizing
- keep employees informed
- working to find new employment
- training
69
How would you apply CSR when implementing new technologies
- reduce impact on environment
- provide good training
- minimize redundancies
70
How would you apply CSR when making changes to facilities
- minimize impact on community and environment
- consider wildlife in the area
- consider pollution
- introduce green energy to power the facilities
71
How would you apply CSR when changing suppliers
- use local suppliers
- use ethical suppliers that implement similar CSR standards that the business expects, especially when sourcing supplies overseas
72
How would you apply CSR when making change to products
- consider impact on the end customer when altering products
| - consider quality of the good
73
What positive and negative effects does change have on managers
positive:
- if the business change went as planned, we can expect celebration for leading the business through this period
- if managers have success linked to financial reward this may lead to a bonus for managers
- the change may have caused them to re-evaluate the management styles and skills they have and have needed to display
- the change may have led to new opportunities for them
Negatives;
- substantial business change can come at the expense of high stress
- in the wake of change some stakeholders may have also been left worse off and may resent these changes
- if the change process wasn't smooth, long simmering resentment and distrust can reside with the employees
- the change may have led to a diminished role or responsibilities for them
74
What positive and negative effects does change have on employees
positives:
- may lead to new opportunities and responsibilities, more exciting and more challenging work
- may have reduced safety risks and remove boring and repetitive tasks
- more successful business which builds long term job security for the employee
- the new positions may require additional training which boosts promotional and employment opportunities
- lead to better employment conditions or bonuses linked to productivity, ie. performance related pay
Negatives:
- could reduce the need for employees or even replace them and leas to redundancy, loss of job, loss of income and loss of esteem through technology changes, outsourcing or overseas manufacturing etc.
- skills and demand if their new positions may cause some fear and angst thus requiring support, counselling or retraining.
75
What positive and negative effects does change have on customers
positives;
- as change is driven by customers often, customers will hopefully benefit with better goods and services, better focused on their needs
- experience higher quality or lower prices
- if CSR is implemented customer may feel happy that the business they have supported are reducing waste or environmental damage etc.
negatives:
- customers may sometimes feel quality has been sacrificed for price or vice versa and no longer have the same connection with the new good or service
- customers may feel their brand loyalty has been taken advantage of and change their buying preferences
76
What positive and negative effects does change have on suppliers
positives;
- suppliers may gain additional contracts or volume orders from the business as they become more successful
negatives;
- if the change process went badly or the market has changes, the supplier business may feel vulnerable as their fortunes may be tied to the host business
- suppliers may have less predictable and more spontaneous reactive orders which they need to respond to. Eg. as a result of JIT programs
- big successful businesses may dominate a market and the supplier may feel vulnerable to their demands. For example milk farmers and supply to major retailers.
77
What positive and negative effects does change have on the general community
positives:
- successful businesses are more likely to employ more workers, reducing the unemployment rate, boosting social well being
- successful businesses generate more company tax which the government can spend on broader benefits to the community; schools, hospitals, public transport etc.
- as businesses become more visible (through social media etc.) to their changed behavior, businesses are hopefully becoming more socially responsible, leading to less environmental damage , less wastage, less monopoly behavior
- successful businesses are more likely to make charitable donations to society and broader causes for example McDonalds setting up homes for sick families through Ronald McDonald charity
negatives:
- business change can lead to redundancy, damaging unemployment levels, supplier closures, lower community incomes, job prospects and social wellbeing in a community. For example Geelong area post car manufacturing withdrawal
78
Outline the three stages of lewins change model
1. unfreeze
2. change
3. refreeze
79
Describe 'unfreeze' as the first stage of lewins change model
Preparing the business for change prior to the actual change taking place
- for a business, this stage involves removing resistance to change and motivating and preparing stakeholders to embark on the change
- if the driving forces outweigh the restraining forces, there should be sufficient motivation to embark on a successful change process
80
What key tasks should be completed in the 'unfreeze' stage
- survey the business in its current state and clearly understand what needs to change
- gain strong support from senior management
- making stakeholders understand why the change must take place with a compelling message. For example, declining sale figures, falling market share, which everyone can understand, and give them a vision of where theyre heading
- you need to challenge current beliefs, values and behaviors otherwise the new version may be unstable
- remove any obstacles that will impede your change
- this stage usually takes time and you can anticipate resistance at this stage
- strategies to overcome resistance can be employed here in preparation for the change itself and getting feedback and clarification from staff is encouraged
81
Describe 'change' as the second stage in Lewins three step
Change is not an event but rather a process called a "transition".In this stage new processes and practices may be introduced to the business and it is expected that this will typically be a period of confusion and some natural fear may be evident in the employees. Time and communication are two main keys for success during this stage.
82
What can be done to counter the natural fear evident during the 'change' step of lewins three step change model
- some support, counselling and training systems may need to be implemented to assist with the smooth transition
- try and empower staff to be actively involved
- short term wins may also be celebrated to build on the change process
83
Describe 'refreeze' as the third step in lewins three step change model
This stage is about returning the business to a new sense of stability. This may involve anchoring the change and developing ways to sustain the change
THIS MAY REQUIRE:
- new policies to be introduced to reinforce the new culture
- develop new job descriptions for the new jobs created
- recognizing employees that have made the change and rewarding them and celebrating success to reinforce the changes that have been made and to help people find closure on the change itself
business is not expected to stay in this new state forever
84
What is the importance of reviewing KPIS after change has been implemented
1. analyze the size and extent of any transformation
2. we can identify the areas we had the most success in and the ones which require additional effort or time to be achieved
3. we can consider an alternative management strategy if we didnt achieve the results we were looking for
85
outline some background information about BEGA
- VISION: to be an australian dairy industry icon
- VALUE heritage, people, customers and community
- started in 1850s, listed on the ASX STOCK EXCHANGE in 2011 and in the same year had a merge with tatura milk industries
- 2017 BEGA acquired the MONDALEZ GROCERY BUSINESS
OBJECTIVES: to create the "Great Australian Food Company", maintain strong relationships with farmers
- BEGA employs over 1,700 people
- the mondalez grocery (2017) and the Peanut Company of Australia is now apart of BEGA FOODS
- was purely a dairy product company until 2014 where they partnered with BLACKMORES (vitamin brand)
86
RELEVANT KPI's AFFECTING BEGA CHEESE:
Number of sales (millions);
2016: $1196
2017: $1227
2018: $1438
```
NET PROFIT (after tax) (millions):
2016: $29.2
2017: $30.3
2018: $44
from 2017 to 2018 there was a 13.7 million dollar increase in comparison to a 1.1 million dollar increase from 2016-2017
```
AUD $20.6 million profit after tax for the first half of its 2018 financial year, a 31 per cent increase on its first half 2017 profits after tax.
PERCENTAGE OF MARKET SHARE:
australian cheese in 2016: 15.7%
RATE OF PRODUCTIVITY:
- increased productivity in line efficiency
- production increased by 9%, from 2016-2018 to 259,235 tonnes
LEVEL OF WASTAGE:
- 12% decrease per tonne of potable water usage
- energy usage down 7.6% between 2016 and 2017
NO. OF WORKPLACE ACCIDENTS:
- decreased by 70% from 2016 to 2017
REVENUE:
18% of 2018 revenue was made from spread and other grocery (not dairy)
87
DRIVING AND RESTRAINING FORCES AT BEGA CHEESE (in regards to the mondelez acquisition)
DRIVING:
- pursuit of profit- branching into new markets can lead to increase sales and profit
- competitors- need to diversify and innovate their business
- managers- change can lead to new opportunities
- employees- change can lead to new opportunities
- innovation
RESTRAINING:
- organisational inertia: people naturally resist change and this change could bring new processes and stakeholders may initially resist the move away from the status quo
- financial considerations: purchased Mondelez for $460 million in 2017, have to consider whether the financial return would make it worth it in the long term
- time
- employees: naturally resist change, employees from Mondelez would have to learn how BEGA operates, may bring new management style, new environment, new culture and new processes
88
Management strategies for BEGA to seek new business opportunities domestically
MULTIPLE BRANDING:
Bega acquired the vegemite brand as well as the peanut company Australia thus owning multiple brands in the Australian Spread market
RESEARCH AND DEVELOPMENT:
Bega conducts market research to response to the Australian market for the development of new products
89
Management strategies for BEGA to seek new business opportunities GLOBALLY
EXPORTING:
2018: bega's export sales rose by 29% to $430 million.
Bega as of 2017 sells to more than 40 countries, generating more than $300 million in export sales each year
AUSTRADE: Austrade have assisted bega in exporting globally, specifically to Asia.
BEGA sells cheddar, processed cheese and other dairy products overseas and now sell roughly 40% of their products internationally.
90
Management strategies to respond to key performance indicators:
No. of sales--- continue to improve quality in production by using strategies such as quality assurance, quality control or total quality management--- increase quality leads to increased customer satisfaction, increased sales and returning customers/loyalty etc.
Net profit figure---- cost cutting---- reduced expenses leads to increased profit margin
Market share---- technology----- by implementing technology such as computer aided manufacturing or automated production lines cause in the long term cut costs and improve efficiency which can enable the business to use porters lower costs strategy and provide their good or service at a competitive price in order to gain customers and therefore gain an increase in market share
Productivity---- increasing staff motivation through staff training---- motivated staff have a higher morale and are more productive
Level of wastage----- redeployment of resources----- makes the most of all resources available, no idle resources
91
The effect of change (positive and negative) on stakeholders at BEGA (in relation to the MONDELEZ ACQUISITIONS)
MANAGERS:
+:
The change may have led to new opportunities for them and the success may have lead to a financial reward for them.
-:
Change could have caused high stress, especially during the legal battle between BEGA and kraft in regards to their rights to produce goods with KRAFTS iconic packaging
EMPLOYEES:
+: may lead to new opportunities and responsibilities, more successful business builds long term job security, new tasks may require staff training which boosts promotional and employment opportunities
-:
skills and demand of their new positions may cause some fear and angst
CUSTOMERS:
+: customers are able to buy Australian products and support the economy and know where their goods are coming from and where the profits are going to
SUPPLIERS:
-: as Bega attempts to dominate the market the suppliers may feel vulnerable to their demands
GENERAL COMMUNITY:
+: Successful businesses are more likely to employ more workers, reducing the unemployment rate and boosting social well being, BEGA will generate more company tax which helps the community build facilities such as schools and hospitals. Successful businesses are more likely to make charitable donations (for example the Ronald McDonald charity that McDonalds established)
92
EXPLAIN franchising
DOMESTIC STRATEGY
- franchiser assigns others the right to market, sell and distribute goods and services
- for the right to sell the franchisers products and use their company name and image
- franchising is a way for business to expand quickly
- allows the franchiser and franchise to make money
- rarely negative effects (shouldn't use for a discuss question)
- important the business HAS GOOD SYSTEMS IN PLACE THAT ARE PROVEN TO SELL THE PRODUCTS
- franchisee pays a fee
93
EXPLAIN the principles of lean management including TIM WOOD
AN APPROACH TO BUSINESS THAT REVIEWS ALL PROCESSES WITH THE AIM TO MAXIMIZE CUSTOMER VALUE AND DECREASE WASTAGE CREATED
T: transportation
I: inventory
M: motion
W: waiting
O: overproduction
O: over processing
D: defects
Principles:
- demand drives production
- achieve a steady flow in production without starts and stops
- focus on value
- zero defects
- remove inefficiencies that dont add value
94
How can lean management be used to respond to KPIs
- can decrease wastage
- can increase productivity
- can increase number of sales due to an a high quality output being produced
- can reduce customer complaints because of zero defects
95
Define just in time
a materials management strategy which requires the operations manager to keep just enough materials on hand to get the workplace through the next production period. Small quantities of inputs are delivered more frequently and inventory is replaced as its used to minimize idle stock.
