Flashcards in U4 AOS1 T2 Deck (92)
list the 10 driving forces
pursuit of profit
reduction of costs
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.