unit 4 aos1 Flashcards
(25 cards)
Define business change
the process of taking an existing business, altering it and establishing a new or modified form.
what are some reasons change occurs
because of pressures placed on the business to make adjustments.
Different areas businesses can adjust
departments, operations, employee tasks, policies, behaviours, management style.
forms of business changes
- Changing products to better suit customers needs
- Moving production overseas to take account of cheaper labour rates
- Changing the motivation strategies you use with your employees
- A new manager coming in and changing the traditional management style
- Changing an input supplier
- Changing the dispute resolution process to take into account employee suggestions
define incremental change
Minor changes in the business’ work environment, for example new products or policies.
Define Significant/radical change
Significant/radical change – substantial changes in the business’ work environment for example, if a merger or takeover occurs or a new competitor disrupts an industry
proactive define
Change that aims to try and avoid a potential future threat or to capitalise on a potential future opportunity.
reactive define
Change that occurs after a threat or opportunity has already occurred.
2 types of respond to change
- reactive
- proactive
Define KPI
Businesses use key performance indicators (KPIs) to evaluate performance. KPIs are criteria used as a measure of the success, or the efficiency and effectiveness, of a particular area of the business’s performance.
10 Kpi’s
- percentage of market share
- net profit
- rate of productivity growth
- number of sales
- rates of staff absenteeism
- level of staff turnover
- level of wastage
- number of customer complaints
- number of website hits
- number of workplace accidents
Define Percentage of market share
the business’s share of the total industry sales for a particular good or service expressed as a percentage.
Define net profit figures
Net profit figure is what remains when expenses are deducted from revenue earned.
Define rate of productivity growth
Rate of productivity growth is the change in productivity in one period compared to that of the previous period.
Define Productivity
productivity is a quantitative measure of efficiency that indicates how many inputs it takes to produce an output.
define number of sales
the amount of goods or services sold over a period of time
define rate of staff absenteeism
rate of staff absenteeism the number of employees who do not turn up for work when they are scheduled to do so.
define Level of staff turnover
Level of staff turnover measures the number of staff who permanently leave the business and need to be replaced.
Define level of waste
Level of waste is the amount of waste created by the production process.
Define number of customer complaints
Number of customer complaints is the amount of people that are dissatisfied with the business and/or its products and have notified the business of their dissatisfaction
Define number of website hits
Number of website hits is the amount of customer visits that a business’s online platform receives for a specific period of time.
what does high number of website hits mean
- A strong relationship with its customers
- Effectively marketed a new product
- A high level of interest in current or future products
- An easy to navigate online presence
Define number of workplace accidents
Number of workplace accidents is the amount of people injured or nearly injured at work due to unplanned events.
what is benchmarking
Benchmarking is comparing a business’ performance against some form of standard.
