Flashcards in Business Change Deck (55)
Distinguish between Change and Business Change
Change is any alteration in the internal or external environments. These are differences that occurs naturally that the business does not actively implement.
such as change in customer tastes or a change in employee expectations.
Business Change is the adoption of a new idea or behaviour by a Business. these are the the changes that the business actively implements in order to improve their efficiency and effectiveness in achieving business objectives
Change is any alteration in the internal or external business environments.
eg - due to technology advances over the last ten years there have been a 50% decrease in the postage of letters and a 50% increase postage of parcels due to online shopping.
Def: Business Change
Business Change is the adoption of any new idea or behaviour by a business.
eg- Australia Post had to adapt to the societal and technological change causing the increase in parcels and decrease in letters causing them to implement vehicles that allow the postmen to carry an increase in small packages.
Proactive is to initiate change rather than simply react to events.
Reactive is to wait for change to occur then to respond to it.
Skills in Managing Change- 6
Efficiency is the degree to which a business has achieved its business objectives
Effectiveness refers to how well a businesses uses resources to achieve business objectives
Def: Key Performance Indicators
Key Performance Indicators are a specific criteria used to measure the efficiency and effectiveness of a businesses performance.
KPI- Def: Percentage of Marketshare
Percentage of Marketshare refers to the businesses portion of the total industry sales for a particular good or service, expressed as a percentage
KPI- Def: Net Profit Figures
Net Profit is what remains when expenses are deducted from the revenue earned.
KPI- Def: Rate of Productivity
Rate of Productivity is a measure the change in output from one year compared to a previous year.
KPI- Def: Number of Sales
The Number of Sales of a product is a measure of goods or service sold.
KPI- Def: Rate of Staff Absenteeism
Rate of Staff Absenteeism measures the number of workers who neglect to turn up to work when scheduled to do so.
KPI- Def: Level of Staff Turnover
Staff Turnover measures the number of employees leaving the business.
KPI- Def: Level of Wastage
Level of Wastage measures the amount of rubbish created by the production process
KPI- Def: Number of Customer Complaints
Customer Complaints indicate whether or not the people who buy the products are satisfied with the performance of the business.
as a result of a customer satisfaction survey
KPI- Def: Number of Workplace accidents
The number of workplace accidents indicate how safe the work environment is for employees.
Benchmarking occurs when a business measures its performance against that of other businesses known for their excellence.
Def: Force Field Analysis
Force Field Analysis outlines the process of determining which forces drive and which resist a proposed change
Def: Driving Forces
Driving Forces are those factors which support the change
Def: Restraining Forces
Restraining Forces are those factors which work against change
Def: Internal Environment
Internal Environment refers to the factors inside the business.
Def: External Environment
The External Environment includes those things over which the business has little control over. It may be divided into an operating environment and a macro environment.
External Environment- Def: Operating Environment
Operating Environment refers to the outside factors with which the business directly interacts in the course of conducting its business.
External Environment- Def: Marco Environment
The Macro Environment is made up of the broad factors in the economy and society within which the business operates.
Internal Environment Driving Forces
- Pursuit of Profit
- Reduction of Costs
Operating Environment Driving Forces
Marco Environment Driving Forces
- Societal Change