U4 AOS1 bus man

Question 1

business change

Answer 1

any alteration in the operation of the business that sees the business transition and create a new state of operation

Question 2

reactive change

Answer 2

is to wait for change to occur and then respond to it

Question 3

proactive change

Answer 3

is to initiate change rather than simply reacting to events

Question 4

key performance indicator (definition)

Answer 4

is a set of criteria that helps business owners understand how their business is performing in a certain area in order to achieve business objectives

Question 5

key performance indicators (9)

Answer 5

• percentage of market share
• net profit figures
• rate of productivity growth
• number of sales/revenue
• rates of staff absenteeism
• level of staff turnover
• level of wastage
• number of customer complaints
• number of workplace accidents

Question 6

MPP SAT CAW

Answer 6

• percentage of market share
• net profit figures
• rate of productivity growth
• number of sales/revenue
• rates of staff absenteeism
• level of staff turnover
• level of wastage
• number of customer complaints
• number of workplace accidents

Question 7

percentage of market share

Answer 7

represents the % of an industry sales that is earned by a particular business over a specified time period (increase = good for business)

Question 8

net profit figures

Answer 8

is what the company has earned after all expenses are deducted from total revenue (increase = good for business)

Question 9

rate of productivity growth

Answer 9

is the % increase in productivity over time (increase = good for business)

Question 10

number of sales/revenue

Answer 10

refers to the measure of the quantity of goods/services sold in a given reporting period (increase = good for business)

Question 11

rates of staff absenteeism

Answer 11

is the number of days employees are absent from work as a % of their total number of working days (decrease = good for business)

Question 12

level of staff turnover

Answer 12

is the amount of employees leaving the business in a period of time and need to be replaced (decrease = good for business)

Question 13

level of wastage

Answer 13

the amount of stock either as a raw material or during processing which is discarded (decrease = good for business)

Question 14

number of customer complaints

Answer 14

the amount of written/verbal expressions of dissatisfaction from customers about an organisation’s goods/services over a period of time (decrease = good for business)

Question 15

number of workplace accidents

Answer 15

the recorded amount of worker/ customer related injuries that occur in a business in a given time period (decrease = good for business)

Question 16

key principles of the Force Field Analysis theory (Lewin)

Answer 16

• driving forces

- restraining forces

Question 17

driving forces (definition)

Answer 17

factors that encourage a change to occur

Question 18

restraining forces (definition)

Answer 18

factors that work against the change and provide resistance

Question 19

driving forces (10)

Answer 19

• managers
• employees
• competitors
• legislation
• pursuit of profit
• reduction of costs
• globalisation
• technology
• innovation
• societal attitudes

Question 20

managers (DF)

Question 21

employees (DF)

Question 22

competitors

Question 23

legislation (DF)

Question 24

pursuit of profit

Question 25

reduction of costs

Question 26

globalisation

Question 27

technology

Question 28

innovation

Question 29

societal attitudes

Question 30

restraining forces (6)

Answer 30

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

Question 31

managers (RF)

Question 32

employees (RF)

Question 33

time

Question 34

organisational inertia

Question 35

legislation (RF)

Question 36

financial considerations

Question 37

Porter's Generic Strategies

Answer 37

is a strategic management theory which describes how a business can seek to acquire a competitive advantage in its industry/market by adopting generic strategies

Question 38

strategies of porter's

Answer 38

- lower costs | - differentiation

Question 39

lower costs

Answer 39

a business manager decides that their strength is to become the lowest cost producer of a product

Question 40

lower costs advantages

Answer 40

- Strong competitive advantage in markets with price conscious consumers - Encourages customers to try the product due to the low price --> results in returning customers - Accessible to a wide range of customers --> as more affordable for all people

Question 41

lower costs disadvantages

Answer 41

- Customers may associate a lower price with lower quality --> could deter customers away - If business choose to lower price, may need to substantial sales to general a profit - May be difficult and time consuming to determine effective ways to reduce costs w/o impacting quality

Question 42

differentiation

Answer 42

to be more innovative and creative than their competitors and create goods/services that have a unique point of difference compared to their competitors

Question 43

differentiation advantages

Answer 43

- Can change a premium price as the cost is not an important consideration for customers - Creates brand loyalty and this can increase competitiveness - Powerful at generating a strong a well known brand image

Question 44

differentiation disadvantages

Answer 44

- Limited target market to those require unique feature or can afford to purchase - Business can copy unique point of difference meaning the competitive advantage is lost - Can be quite expensive to be unique, increasing costs and making it hard to generate a profit

Question 45

similarities between lower costs and differentiation

Answer 45

- Both approach are used as a way for a business to gain a competitive advantage - Both it is easier for larger business to spend on research and development to innovate - Both aim to achieve business objectives

Question 46

differences - lower costs

Answer 46

- Attracts price sensitive customers | - Internal focus on how the business can reduce costs

Question 47

differences - differentiation

Answer 47

- Attract brand loyal and quality conscious customers | - External focus on how they can provide unique point of difference compared to rivals