I think this is the business quizlet but I may be wrong. Shoutout to Benjamin O’Brien: Our Wood House Leader 🫡 (Unit 4, AOS1 KK1-KK7)

Change

Alternation in internal or external environment in relation to an idea or behaviour.

Business Change

Adoption of a new idea or behaviour resulting in a different form or operation of a business over time.

Proactive

Change is planned and occurs before a business is affected by pressure in their environment.

Reactive

Change is unplanned, happens after business is affected by pressures of the environment.

Key Performance Indicators (KPI)

A quantifiable measure used to evaluate success of the business.

Examples of KPI

Net profit, level of wastage, number of sales

Kurt Lewin's Force Field Analysis Theory

A process used to determine which forces drive and resist a proposed change.

(Drive push, Restraining work against)

Examples Driving forces

Pursuit of profit, competitors, societal attitudes.

Examples Restraining forces

Financial considerations, competitors, managers.

Steps to conduct Lewins Theory

Define the target of change, identify the driving forces and the restraining forces, analyse the forces which can be changed, develop an action plan.

Advs of Force Field Analysis

Identify those supporting vs restraining of change, Allows stakeholders to identify change as a pos+neg change from their perspective.

Dis of Force Field Analysis

Timelines can be subjective, Biased importance of particular force.

Porter's Generic Strategies

Framework for strategic business planning.

2 strategies to porters generic approach

Cost leadership strategy, Differentiation approach

Cost leadership strategy

Business sets out to become the lowest-cost producer in the industry.

Examples Cost leadership strategy

Increasing profits by reducing production costs, Increasing market share by charging lower prices.

Differentiation approach

A business emphasises the difference between it and competitors in same industry.

examples Differentiation approach

Multiple branding, High-quality product

Five Force analysis

Analysis to understand where power lies.

Steps to conduct Porters generic strategies

Carry out a SWOT analysis, Conduct a five force analysis, compare SWOT analysis wit five force analysis results.

Advs of low-cost strategies

Become more profitable, Savings can be put towards differentiation at later date.

Dis of low-cost strategies

Lowering costs now means there is little room to make changes in the future, Sales fall.

Advs of Differentiation strategies

Develop customer loyalty, potential revenue gains.

Dis of Differentiation strategies

Rival businesses can copy approach, time-consuming.

Internal environment

Factors within the company's control.

Operating environment

Includes immediate, direct influences like customers.

Macro environment

Broader, societal and economic forces.

What is increased market share

Rise in a company's proportion of total industry sales.

How KPIs achieve business objectives

Number of sales may represent competitive strength and increased market share.

Efficiency

How well a business uses its resources to achieve objectives.

Effectiveness

The degree to which a business achieves its objectives.

Examples of business objectives

Make a profit, increase market share, improve customer satisfaction.

If KPIs are useful they must be...

Relevant, reliable and valid.

Managements skills

Communication, delegation, planning.

Competitive advantage

An advantage a business has over it's competitors, allows to perform better, attract more customers, and achieve superior results.