change SAC

business change

any alteration to the way a business operates.

change

the process of becoming different.

Proactive Change

change made before a problem occurs to maintain a competitive advantage.

Reactive Change

change made in response to a problem or event that has already occurred.

Evaluating Change

assessing whether a change has successfully achieved the business's objectives.

Key Performance Indicators (KPIs)

measurable indicators used to assess how well a business is achieving its objectives.

Percentage of Market Share

the proportion of total sales in a market that is earned by a business.

Net Profit Figures

the amount of money remaining after all business expenses have been deducted from revenue.

Rate of Productivity Growth

the increase in the amount of output produced using the same amount of inputs over time.

Number of Sales

the total number of products or services sold by a business over a period of time.

Number of Customer Complaints

the total number of complaints received from customers about a business's products or services.

Rate of Staff Absenteeism

the percentage of time employees are absent from work when they are expected to attend.

Level of Staff Turnover

the rate at which employees leave a business and are replaced.

Number of Workplace Accidents

the total number of injuries or accidents that occur in the workplace.

Level of Wastage

the amount of materials, time or resources that are wasted during business operations.

Website Hits

the number of visits or interactions a business's website receives over a period of time.

Force Field Analysis Theory

change occurs when driving forces are stronger than restraining forces.

A&D of force field analysis

Advantages

1. Identifies what is helping and resisting change.

2. Helps managers plan strategies to overcome resistance.

3. Improves the chances of successful change.

Disadvantages

1. Time-consuming to identify all forces.

2. Some forces are difficult to measure.

3. Does not guarantee successful change.

External Environment

factors outside the business that influence its decisions and operations.

Driving Forces

factors that encourage or support a business to implement change.

Competitors DF

rival businesses selling similar products or services that encourage a business to improve or change.

Technology DF

change by improving efficiency, productivity and the products or services a business offers.

Societal Attitudes DF

changing consumer values, beliefs and lifestyles that encourage businesses to adapt.

Legislation DF

laws that require or encourage businesses to change their operations.

Innovation DF

the development or introduction of new ideas, products, services or processes that improve a business.

Globalisation

the increasing connection of businesses and markets around the world, creating new opportunities and competition.

Internal Environment

factors within the business that influence change.

Managers DF

drive change by planning, leading and supporting employees through the change process.

Employees DF

drive change by contributing ideas, supporting new initiatives and improving business performance.

Pursuit of Profits DF

the desire to increase revenue and maximise financial returns.

Reduction of Costs

the aim of lowering business expenses to improve profitability.

Restraining Forces

factors that resist or slow down a business's efforts to implement change.

Managers RF

resist change if they lack the skills, experience or confidence to implement it successfully.

Employees RF

resist change because they fear job loss, increased workloads or changes to their roles.

Legislation RF

restrain change because businesses must comply with legal requirements, making change more difficult or time-consuming.

Time RF

restraining force because planning, implementing and adjusting to change can take a long time.

Financial Considerations RF

the costs involved in implementing change, which may discourage or delay it.

Organisational Inertia RF

resistance to change because employees and managers are comfortable with the current way of doing things.

Porter's Generic Strategies

explain how a business can gain and maintain a competitive advantage over its competitors.

Porter's Lower Cost Strategy

involves offering products or services at a lower price than competitors to attract customers.

A&Ds for porters lower cost strategy

Advantages

1. Attracts price-sensitive customers.

2. Can increase sales and market share.

3. Can improve competitiveness against rivals.

Disadvantages

1. May reduce profit margins.

2. Competitors can also lower their prices.

3. Reducing costs may lower product or service quality.

Porter's Differentiation Strategy

offering unique products or services that competitors cannot easily replicate.

A&Ds for Porter's Differentiation Strategy

Advantages

1. Creates a competitive advantage.

2. Builds customer loyalty.

3. Allows the business to charge higher prices.

Disadvantages

1. Can be expensive to develop and maintain.

2. Competitors may eventually copy the unique features.

3. Customers may not be willing to pay the higher price.