U4: AOS1 (Forces for Change) Flashcards

1
Q

How are Managers driving forces for change?

A
  • Initiate/maintain momentum of change through leadership

- Share vision and inspire others to be role models

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2
Q

How are Employees driving forces for change?

A
  • Influence other employees to embrace change

- Main pursuers/upholders of change through work

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3
Q

How are Competitors driving forces for change?

A
  • Forces business to improve due to competitive edge

- Introduces new practices which may be adopted by business

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4
Q

How is Legislation a driving force for change?

A
  • Enforces that the business adhere to good practices

- Outlines framework for which business can operate

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5
Q

How is Pursuit of Profit a driving force for change?

A
  • Encourages better business performance

- Encourages implementation of better practices

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6
Q

How is Reduction of Costs a driving force for change?

A
  • Encourages higher efficiency through increase of sales and reduction of cost
  • Implements improvements to business
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7
Q

How are Managers a restraining force in businesses?

A
  • If change threatens personal beliefs or position, will be influential is restraining change
  • Can influence employee opinion, not prioritise tasks
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8
Q

How are Employees a restraining force in businesses?

A
  • Employees may fear the unknown change, fear for job security, fail to see logic/reason in change.
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9
Q

How is Time a restraining force in businesses?

A
  • Implementing decisions/change takes time, which may hinder performance against competitors
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10
Q

How is Organisational Inertia a restraining force in businesses?

A
  • Business may be unable to see need for change due to prior success, and might not implement it (reactive, not proactive decisions)
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11
Q

How is Legislation a restraining force in businesses?

A
  • Laws limit the practices which a business can implement to achieve change
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12
Q

How are Financial Considerations a restraining force in businesses?

A
  • Business needs money to make change. No cash = no change
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13
Q

How is Globalisation a driving force for change?

A
  • Exposure to global competitors = competition increasing performance
  • Access to global market = increased sales
  • Global manufacturing options = reduce costs, different practices
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14
Q

How is Technology a driving force for change?

A
  • Manufacturing technology = new ways to make products (less costs, innovation)
  • Internet + communications = better access, new methods
  • Tech helps process be more efficient/effective
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15
Q

How is Innovation a driving force for change?

A
  • Major source of competitive advantage = drives change
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16
Q

How are Societal Attitudes a driving force for change?

A
  • Forced to respond with appeasement to societal attitudes (eg. Women in work, ageing employees, migrants, ethical practices)
17
Q

1) What is Porter’s ‘Lower Cost’ strategy?
2) Examples of how it might be implemented.
3) How is this effective?

A

1) Gaining a competitive edge by becoming the lowest cost producer in an industry.

2)
- Bulk buying
- Quicker and more efficient tech
- Lean management
- Offshoring/cheap labour

3) Appeals to cost conscious people

18
Q

1) 2 Advantages of ‘Lower Cost’ strategy

2) 2 Disadvantages of ‘Lower Cost’ strategy

A

1)

  • Strong competitive advantage
  • Ability to generate high profit

2)

  • Lower customer loyalty (only care for price)
  • May result in low quality/generic product
19
Q

1) What is Porter’s ‘differentiation’ strategy?
2) Examples how it might be implemented.
3) How is it effective?

A

1) Gaining a competitive edge by making unique products which are more creative/innovative than competitors.

2)
- Innovate products
- New features (durability, accessibility)
- Unique marketing

3) Appeals to loyal customers

20
Q

1) 2 Advantages of ‘Differentiation’ strategy

2) 2 Disadvantages of ‘Differentiation’ strategy

A

1)

  • Strong competitive advantage for loyal customers
  • Ability to change price (as price is not focus)

2)

  • Repels ‘cost conscious’ customers
  • Unique features can be copied by competitors