Business AOS 4

Business Change

Business Change is the alteration of behaviours, policies and practices within a business.

Proactive Approach

Proactive approach is when a business changes to avoid future problems or take advantage of an opportunity to gain a competitive advantage

Reactive Approach

Reactive approach is when a business undertakes change in response to a situation or crisis

Number of sales

is the total quantity of goods and services sold by a business over a specific period of time

Number of website hits

is the amount of customer visits that a business's online platform receives for a specific period of time.

Staff Absenteeism

are the average number of days employees are not present when scheduled to be at work, for a specific period of time.

Percentage of market share

measures the proportion of a business's total sales, compared to the total sales in the industry, expressed as a percentage figure

Rate of productivity growth

is the change in the total output produced from a give level of inputs over time, expressed as a percentage figure

Number of customer complaints

is the number of customers who notified the business of their dissatisfaction over a specific period of time

Number of workplace accidents

measures the amount of injuries that occur at a work location over a specific period of time

Net profit figures

are calculate by subtracting total expenses incurred from total business revenue earned, over a specific period of time.

Staff Turnover

is the percentage of employees that leave a business over a specific period of time and must be replaced

Level of wastage

is the amount of inputs and outputs that are discarded during the production process

Force Field Analysis

Force Field Analysis is a theoretical model that determines if businesses should proceed with a proposed change

Driving Forces

are factors affecting the business environment that promote and support business change

Restraining Forces

are factors that resist a business change or actively try to stop it.

Weighting

is the process of scoring and attributing a value to the driving and restraining forces.

Ranking

involves arranging the forces in the order of value and determining the total score of driving and restraining forces.

Porters Lower Cost Strategy

involves a business offering customers similar or lower priced products compared to the industry average, while remaining profitable by achieving the lowest cost of operations among competitors.

Porters Differentiation Strategy

involves offering customers unique services or product features that are of perceived value to customers, which can then be sold at a higher price than competitors.

Organistational Intertia

is the tendency for a business to maintain established ways of operating.

Societal Attitudes

are the collective values, beliefs, and views of the general public.

innovation

is the process of altering and improving or creating new products or procedures.

Technology

is the application of scientific knowledge to invent new devices, tools, systems, or processes.

Globalisation

is the process by which governments, businesses, and people across the globe are becoming more interconnected, allowing for increased international trade and cultural exchange.

Legislation

is the laws and legal regulations that a business has to follow.

Competitors

are other businesses within the same industry that sell similar goods or services to a business.

Managers

Managers play an important role within a business as they ensure business performance is optimized and objects are being achieved.

Owners

Owners are the highest form of management in a business

Employees

Employees are vital to the business as they are responsible for achieving business objectives.

Pursuit of Profit

refers to the effort that a business will make to ensure that revenue exceeds expenses.