U4 AOS1 Reviewing Performance - Need for Change

bench marking

a process by which a company compares its performance with that of high-performing organisations

business change

the adoption of a new idea or behaviour by a business

change

any alteration in the internal or external environments

competitive advantage

an ascendancy or superiority over other like-businesses, gained by offering greater customer value (either by having lower prices, flexibility to adapt to new trends or providing more benefits or better quality that justify higher prices)

driving forces

problems or opportunities that __initiate__, __encourage__, __accelerate__ and __support__ change

effectiveness

A measure of the appropriateness of the objectives an organisation is pursuing and the degree to which the organisation achieves those stated objectives

Force Field Analysis

A technique for determining which forces drive a proposed change and which forces restrain it.

globalisation

The breaking down of traditional trade barriers between nation states allowing movement of goods, capital, labour, technology, finance and information.

innovation

a process of improving of an existing idea, product, system, or method of doing something.

Key Performance Indicators (KPIs)

criteria used as to measure of the success, or the efficiency and effectiveness, of a particular area of the business' performance

Level of wastage (KPI)

Measure of residual resources that remain from the production process

Net Profit Figures (KPI)

Difference between revenue earned and expenses incurred in operating the business

niche market

narrowly selected group of people with common characteristics, within a larger market, at which the business will target their goods and services

number of customer complaints (KPI)

a measurement of communications from customers regarding negative feedback

Number of sales (KPI)

A measure of the quantity of goods and services sold

Number of workplace accidents (KPI)

a measure of recorded incidents that cause harm to employees or damage to workplace assets

organisational inertia

refers to inactivity, lack of response or an unenthusiastic response when faced with proposed changes in the business

percentage of market share (KPI)

Proportion of total industry sales for a particular good or service, expressed as %

proactive

creating or controlling a situation by initiating something rather than responding to it after it has happened.

productivity

a measure of performance that indicates how many inputs (resources) it takes to transform into an output (goods or services)

Rate of productivity growth (KPI)

The change in how many inputs are transformed into outputs in one year compared to that of the previous year

Rate of staff absenteeism (KPI)

Measures the number of workers who do not turn up for work __when scheduled to do so__

reactive

waiting for a change to occur and then respond to it

restraining forces

those that __work against__, __resist__, __inhibit__ or __slow down__ change or movement from the existing equilibrium (status quo)

staff turnover (KPI)

Measures the number of staff leaving the workplace and need replacing in a set amount of time (usually 12 months)

Lower Cost strategy

The ability of a business to design, produce and market a comparable product more efficiently than its competitors

Differentiation strategy

The ability of a business to distinguish their products from the substitutable products of competitors on dimensions such as product design, quality, or after-sales service.