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Flashcards in U4 AOS2 T1 Deck (90)
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61

advantages of innovation 3

Creates a new market and / or product to expand sales
Generates a consumer “buzz” around a new idea / concept
Can extend the product life cycle

62

disadvantages of innovation 2

Need to constantly innovate to stay in front of the next idea
Often requires heavy marketing to get the idea out to consumers

63

advantages of Taking advantages of technology
3

Can create new markets to expand into
Can lead to greater accuracy, quality and improved customer products / service
Can lead to efficiency, higher productivity and lower costs per unit which leads to “low cost” strategic advantage

64

disadvantages of Taking advantages of technology
2

Can be expensive to invest in new technology
Can require investment in staff training

65

advantages of Export goods and services overseas3

Much bigger markets to tap into – sales numbers can massively increase
By targeting areas of free trade agreements to avoid tariffs and quotas
Can use Austrade support programs

66

disadvantages of Export goods and services overseas
5

Exposed to exchange rate fluctuations
May have to deal with language or cultural barriers
May be exposed to tariffs, quotas, import regulations etc.
Delivery times increase
Exposed to global competition

67

advantages of producing goods overseas 3

Access to larger markets for your products
Having production much closer to your customer base to help with marketing issues etc.
Opportunity to cut costs from lower labour costs

68

disadvantage of producing goods overseas 1

• May prove harder to manage operations from Australia

69

define tariff

a tax on imports to help local production be cost effective

70

define quota

a limit on the quantities of goods that can be imported into a country

71

what is the theory of ‘The Fifth Discipline: The Art and Practice of The Learning Organisation’ in 1990.

This theory is associated with businesses that continuously transform themselves by allowing the members of that business to continuously learn from their experiences.

72

what are the five principles of a learning organisation

Mental models
Building a shared vision
Personal mastery
Team learning
Systematic thinking

73

define mental models

This is about creating a business culture of openness, inquiry and trust where employees are encouraged to challenge old assumptions and mindsets in order to feel empowered to create something new and better than before.

74

for mental models to be implemented what is needed to be done

For this to occur it will be necessary for people to learn new skills and develop new orientations, and for there to be institutional changes that foster such change.

75

why is building a shared vision beneficial 2

The development of a shared vision is important in motivating the employees to learn, as it creates a common goal that provides focus and energy for learning.
When there is a genuine vision people excel and learn, not because they are told to, but because they want to.

76

People who work within the business, who adopt this shared vision:

, will understand the long-term objectives of the business and so a commitment to the business and to learning will further develop.

77

what is personal mastery

This is where an individual is committed to self improvement and becomes a life-long learner. Individual learning is acquired through staff training, development and continuous self reflection.

78

why is team learning important

This is an important because it places emphasis on the team rather than the individual. The idea is that individuals learn from each other and as a group together. Employees learn more quickly and the problem solving capacity of the business is improved when ideas can be shared openly and with trust.

79

When teams learn together:

then the business will achieve improved results, but importantly, members will grow more rapidly than could have occurred otherwise.

80

what is systems thinking

Systems thinking is the ability to see the big piture, to look beyond what is occurring just within a business. This creates a structure for an organisation as a whole to help work towards change

81

why do learning organisations use systems thinking

Learning organisation’s use this method of thinking to evaluate the performance of the business as a whole, rather than separate units.

82

Without a systemic orientation, there is no:

motivation to look at how the disciplines interrelate. By enhancing each of the other disciplines, it continually reminds us that the whole can exceed the sum of its parts.” Peter Senge

83

6 advantages of a Learning Organisation

Boosts levels of creativity, thinking, innovation and business competitiveness
Continuously striving to improve
Adaptable, flexible, the business responds quicker to issues in the future
Staff motivation should increase, boosts skills and empowerment
Improving quality of outputs at all levels
Improving corporate image by becoming more people oriented – employer of choice

84

2 disadvantages of a learning organisation

Requires cultural change which can take time
Large businesses can struggle to share ideas and knowledge between all the members

85

what is product differentiation

a strategy where a business will use brand names and advertising to establish some key differences between their product and substitutable products.

86

benefits of product differentiation 1

Product differentiation can allow businesses to make their product stand out as the product is designed or marketed in a manner that involves a brand name that makes it appear different to the existing products on the market.

87

what is total quality management

is an ongoing, business-wide commitment to excellence that is applied to every aspect of the business’s operation.

88

what is quality control

involves the use of inspections at various points in the production process to check for problems and defects.

89

what is quality assurance

involves the use of a system so that a business achieves set standards in production.

90

what is lean management

is an approach
that improves the efficiency and effectiveness of operations by eliminating waste and improving quality.