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VCE Business Management 3/4 2017 > Business Change > Flashcards

Flashcards in Business Change Deck (55)
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1

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.
Whereas
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

2

Def: Change

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.

3

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.

4

Def: Proactive

Proactive is to initiate change rather than simply react to events.

eg-

5

Def: Reactive

Reactive is to wait for change to occur then to respond to it.

eg-

6

Skills in Managing Change- 6

Communication skills
Planning Skills
Leading Skills
Decision-Making Skills
Interpersonal Skills
Delegating Skills

7

Def: Efficiency

Efficiency is the degree to which a business has achieved its business objectives

8

Def: Effectiveness

Effectiveness refers to how well a businesses uses resources to achieve business objectives

9

Def: Key Performance Indicators

Key Performance Indicators are a specific criteria used to measure the efficiency and effectiveness of a businesses performance.

10

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

11

KPI- Def: Net Profit Figures

Net Profit is what remains when expenses are deducted from the revenue earned.

12

KPI- Def: Rate of Productivity

Rate of Productivity is a measure the change in output from one year compared to a previous year.

13

KPI- Def: Number of Sales

The Number of Sales of a product is a measure of goods or service sold.

14

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.

15

KPI- Def: Level of Staff Turnover

Staff Turnover measures the number of employees leaving the business.

16

KPI- Def: Level of Wastage

Level of Wastage measures the amount of rubbish created by the production process

17

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

18

KPI- Def: Number of Workplace accidents

The number of workplace accidents indicate how safe the work environment is for employees.

19

Def: Benchmarking

Benchmarking occurs when a business measures its performance against that of other businesses known for their excellence.

20

Def: Force Field Analysis

Force Field Analysis outlines the process of determining which forces drive and which resist a proposed change

21

Def: Driving Forces

Driving Forces are those factors which support the change

22

Def: Restraining Forces

Restraining Forces are those factors which work against change

23

Def: Internal Environment

Internal Environment refers to the factors inside the business.

24

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.

25

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.

26

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.

27

Internal Environment Driving Forces

- Managers
- Employees
- Pursuit of Profit
- Reduction of Costs

28

Operating Environment Driving Forces

- Competitors
- Customers

29

Marco Environment Driving Forces

- Legislation
- Globalisation
- Technology
- Innovation
- Societal Change

30

Def: Globalisation

Globalisation is the movement across nations of trade, investment, technology, finance and labour brought about by the removal of trade barriers.