U4 AOS1 T2 Flashcards Preview

Business Managment 3/4 > U4 AOS1 T2 > Flashcards

Flashcards in U4 AOS1 T2 Deck (92)
Loading flashcards...

list the 10 driving forces

pursuit of profit
reduction of costs
social attitudes


what is a managers (driving) responsibility

Managers have the responsibility of operating a profitable or successful business, through the use of various management styles and skills.


drive that a manager (driving) provides

The personal “drive” that a manager provides to initiate and maintain the momentum of the change.


what does a manager(driving) share

They will also share their vision and try and get others inspired to change by being role models.


eg. of managers (driving) being a driving force

For example, when Wesfarmers Limited took over the poorly performing Coles in 2007, management implemented a five-year recovery process.


how will employees (driving) be a great force for change

If employees support and are happy with the change


how will employees (driving) be important in a change

They are able to influence others and through empowerment, or employee centred management styles and skills, can have an active role in pursuing change.


what are the employee (driving) expectations

Employees working for a business expect to be paid fairly, trained properly and treated ethically in return for their vital contribution to production, Empowerment and performance related pay.


when can innovative employees (driving) thrive

Some innovative employees can thrive in a laizzes-faire/participative environment, if they are disciplined and have knowledgable of the change.


with competitors, what is needed to be done by the business, and what drives that force

A business needs to respond to the actions of competitors or risk being left out of the industry. The pursuit of a competitive edge is a constant driving force.


to determine the effect that competitors have in the market what is needed to be done

Businesses need to monitor the activities of their competition and determine what effect they may be having in the marketplace.


what are competitors useful for

Competitors are used for comparison and benchmarks. marketing such as Pricing strategies and advertising campaigns, adoption of new technologies,


how is legislation a driving force + eg

Businesses need to respond to local, state and federal governments who may bring in legislation that they need to address. E.g. minimum wages, equal opportunity, anti-discrimination, OH&S legislation. And
these court rulings, can change legislation which again businesses are forced to comply with and respond to.


how is pursuit of profit a driving force

Profit is one of the key objectives of a business and therefore the pursuit of it is a major driving force for business managers and owners. Also All businesses, regardless of size, need to earn a profit, of which they return a portion to owners/shareholders.


what needs to be done when the pursuit of profit is not being succeeded

If the profit levels of a business are not as high as the management team have identified as their goal it is likely they would need to make changes to either generate more revenue or decrease their costs to earn the pro t that allows them to achieve their goals.


how is the reduction of costs a driving force

Reduction in costs in marketing, production, human resources, raw materials, staffing etc. are often a key driver of change and can create quick improvements to the bottom line.


what may drive the business to change (reduction of costs)

If costs are rising then profit will be negatively impacted and as such may drive the business to change


strategies for changing the reduction of costs for the best 3

source cheaper materials/supplier
local supplier ~ avoid import payments
reduce wages ~ downsize or replace labour with tech


how is globalisation a driving force

The increase in global trade, communication and transportation on a global scale creates many drivers for business to change.


how does globalisation lead to change

Some businesses may be exposed to global competitors, or have global opportunities to expand into global markets through free trade agreements, and expanding internet and electronic communication channels. And
Others may be driven to seek global manufacturing options to reduce labour costs, outsourcing or obtain raw materials from around the globe based on quality and price


how is technology a driving force

Technology allows a business to operate its processes and practices more efficiently and effectively, cutting costs and improving productivity. As such technology, and any advances in technology, should be considered as a driving force for change.


why is adapting to technology important

If a business is slow to exploit technology, a business is likely to fail, because its competitors will strive to capture greater market share and develop a sustainable competitive advantage.


examples of adopting to technology for manufacturing companies

Manufacturing – robots / automation / 3D printing / Airbus / car manufacture


examples of adopting to technology for a service company

Services & External Communication – internet / mobile phones, GPS, applications – Facebook, augmented / virtual reality


what is innovation and how is it a driving force

Is the introduction of new products, modifying existing ones, adapting business methods or business activities and is a major source of competitive advantage for business and therefore a strong driving force for change.


how can innovation be driven

can be driven by technological advances and by globalisation.


what can innovation be a result of

Innovation can result from research and development undertaken by businesses or through individuals identifying areas for improvement. can also result from the identification of a niche market.


what are societal attitudes

Society’s attitudes to what is right and wrong are constantly changing and this affects the ways in which businesses operate.


how are societal attitudes a driving force

Society requires that large businesses sell acceptable products and treat staff with respect.


what is a niche market

is a narrowly selected market segment within a larger market.