U4 AOS 1: Driving Forces Flashcards
(24 cards)
What are driving forces?
Driving forces are those forces that support a change, they successfully help the change to be implemented.
What does MELT-CRIPS-GO stand for?
Managers
Employees
Legislation
Technology
Competitors
Reduction of costs
Innovation
Pursuit of profit
Societal attitudes
Globalisation
Owners
What are managers?
Managers are those responsible for different areas of the business to ensure strategies are carried and make decisions about the future direction of the business to ensure business objectives are achieved.
What are employees?
Employees are the people working in the business.
How can managers be a driving force?
- Managers can initiate change after receiving KPI data, strong leaders can help drive the business towards the change
How can employees be a driving force?
- Employees can drive change through innovation
- They can place demands on the business towards change conditions, policies and processes
What is legislation?
Legislation is the laws enforced on a federal, state or local level.
How can legislation be a driving force?
- CHange to laws can force a business to implement change
- Legislation can change at a federal, state or local level
What is technology?
Technology is the purposeful application of information in the design, production, and utilisation on goods and services in an organisation.
How can technology be a driving force?
- Technology can impact all parts of the business
- Businesses may need to implement technology to remain competitive
What is innovation?
Innovation is the process of adopting something new or improving on what already exists.
How can innovation be a driving force?
- Can include new production processes, or new and improved products.
What are societal attitudes?
Societal attitudesdes are the views, values and beliefs of what is acceptableable from a business changing over time.d
How can societal attitudes be a driving force?
- Societal attitudes are constantly changing
- Businesses that fail to keep up with these attitudes risk falling behind
- Customers want places that use corporate social responsibility practices
What is globalisation?
Globalisation is the process where economic boundaries are removed and businesses can be gin operation on an international scale.
How can globalisation be a driving force?
- Increase global competition
- Allows businesses to take advantages of global markets
What is reduction of costs?
Decreasing the amount of money spent in order to produce a good or service.
How can the reduction of cost be a driving force?
- Costs impact profit margins
- Can help a business become more profitable
- A business that has high costs can initiate change
What is the pursuit of profit?
Pursuit of profit is the amount of money remaining after revenues have been deducted from expenses.
How can the pursuit of profit be a driving force?
- Businesses that are looking to increase profit, may implement change
What are competitors?
Competitions are any businesses in the same industry.
How can competitors be a driving force?
- Many industries are highly competitive
- Competition can drive businesses to implement change to gain a sustainable competitive advantage
What are owners?
Owners are those who establish and operate the business.
How can owners be a driving force?
- Some owners are very active in the business (small-medium)
- Some owners pass on their responsibility to managers (larger businesses)
