Business unit 4 aos2 KK1,2.3

leadership in change management

Is the ability to positively influence and motivate employees towards achieveing business objectives during a transformation

managers can demonstrate strong leadship in change management by

• building a shared vision - where they act to inspire employees and inform them of the reasons and benefits of change, as well as the consequences of not changing.

• providing ongoing communication - with clear instructions to employees and instilling them with trust and confidence as they move from current to new practices.

• providing ongoing support - through counselling, training, and consultation where they aim to coach and mentor employees through the change process.

management strategies to respond to KPIs and/or seek new business opportunities

• staff training

• staff motivation

• change in management styles or management skills

• increased investment in technology

• improved quality in production

• cost cutting

• initiating lean production, intiating lean production techniques

• redeployment of resources (natural, labour and capital)

• innovation

• global sourcing of inputs

• overseas manufacture

• global outsourcing

staff training

Staff training involves providing employees with the knowledge and skills required to perform their work tasks effectively. Training can be on-the-job, where employees learn while working, or off-the-job, where employees learn away from the workplace. Staff training can improve productivity, quality and workplace safety because employees are better equipped to perform their tasks correctly and efficiently. It can also motivate employees because they feel valued and supported by the business. This can improve employee performance, reduce mistakes and improve the quality of goods and services, helping the business achieve its KPIs and improve overall business performance.

number of customer compliant increase effect of using staff training as a strategy

• establishes an expected standard of performance and employee conduct allowing for improvements in the quality of a good or service, leading to more satisfied customers

number of customer compliants decrease

number of workplace accidents effect of using staff training as a strategy

• ensures employees are equipped with the skills to handle and operate equipment safely contributing to a safer workplace

number of workplace accidents decrease

number of sales effect of using staff training as a strategy

• equips employees with the knowledge anad skills requireed to communicate the value of good or service to customers anad promote sales

number of sales increase

net profit figures effect of using staff training as a strategy

• provides employees with the knowledge and expertise to deliver high quality customer service and create positive customer experiences, encouraging repeat purchasing from customers, leading to increase in revnue

net profit figures increase

percentage of market share effect of using staff training as a strategy

• provides employees with the knowledge and skills to deliver a unique customer experience that provides the business with a competitve advantage and allows a greater proportion of sales to be captured within its industry

percentage of market share increase

rate of productivity growth effect of using staff training as a strategy

• Equips employees with the knowledge and skills to perform tasks faster allowing for improvements in efficiency and, therefore, productivity.

rate of productivity growth increase

level of staff turnover effect of using staff training as a strategy

Motivates employees and creates feelings of value as the business provides them with opportunities for personal growth.

level of staff turnover decrease

rates of staff absenteeism effect of using staff training as a strategy

Motivates employees in their jobs as they have the knowledge and skills required to complete their work to a high standard

rates of staff absenteeism decrease

number of website hits effect of using staff training as a strategy

Employees may be provided with greater knowledge and skills, allowing them to deliver a higher quality good or service, which may improve customers’ perception of the business. As a result, more customers are interested in and engaging with the business’s online site.

number of website hits increase

staff motivation

Staff motivation is the willingness of an employee to expend energy and effort to complete a task. A business can improve staff motivation by using motivation strategies or theories, which can increase employee morale, work ethic, commitment and sense of belonging. Motivated employees are more likely to work effectively, resulting in higher productivity, quality and efficiency and improved interpersonal relationships. Staff motivation can also help a business respond to KPIs such as high staff turnover and absenteeism, as motivated employees are more likely to remain committed to the business and attend work. This can improve overall business performance and help the business achieve its objectives and KPIs.

level of staff turnover effect of using staff motivation as a strategy

Motivating employees can provide them with a greater sense of achievement and increase their commitment to the business as managers recognise their efforts to achieve objectives.

level of staff turnover decrease

rates of staff absenteeism effect of using staff motivation as a strategy

Motivating employees can increase their willingness to show up to work and complete work tasks as they are provided with greater support and rewards.

rates of staff absenteeism decrease

number of customer complaints effect of using staff motivation as a strategy

Motivating employees can increase their commitment and willingness to improvevthe quality of a good or service, enhancing the customer service experience.

number of customer complaints decrease

rate of productivity growth effect of using staff motivation as a strategy

Motivated employees may be more willing to increase the efficiency and effectiveness of the production process to achieve business objectives, hence improving productivity.

rate of productivity growth increase

percentage of market share effect of using staff motivation as a strategy

Motivated employees may deliver higher quality goods and services to customers and provide them with a unique customer experience that enhances the competitiveness of the business and allows a greater proportion of sales to be captured within its industry.

percentage of market share increase

number of sales effect of using staff motivation as a strategy

Motivated employees may be more willing to enhance their product knowledge and contribute innovative ideas that increase a business’s competitive advantage and attract more customers.

number of sales increase

number of website hits effect of using staff motivation as a strategy

• Motivated employees may deliver a higher quality customer service, encouraging customers to engage with the business online.

• Employees who are motivated may be more willing to effectively promote abusiness’s products, therefore attracting more customers to the business’s online site.

number of website hits increase

change in management styles

A change in management style involves a manager changing the way they direct and communicate with employees. The manager should consider the complexity of the task, employee experience, time available and their personal management preferences when choosing the most appropriate style. A change in management style can improve staff engagement and coordination of business activities, helping the business respond to poor KPIs. For example, if employee morale is low, a manager could use a less restrictive style with two-way communication and decentralised decision-making, increasing employee involvement and willingness to complete tasks. However, if a business is highly inefficient, a manager could use a more restrictive style with one-way communication and centralised decision-making, allowing the manager to direct employees more effectively and ensure tasks are completed to the required standard. This can improve business performance and help the business achieve its objectives and KPIs.

level of staff turnover effect of using change in management styles as a strategy

Adopting a less restrictive management style promotes employee involvement in decision-making. This encourages employees to feel increasingly valued and considered in the workplace, allowing the business to have greater employee retention.

level of staff turnover decreased

rates of staff absenteeism effect of using change in management styles as a strategy

Adopting a less restrictive management style can increase employee self-confidence when completing work tasks and create strong interpersonal relationships in the workplace. This allows employees to feel trusted by their manager and more connected to the business, encouraging them to regularly attend work.

rates of staff absenteeism decreased

rates of productivity growth effect of using change in management styles as a strategy

Adopting a more restrictive management style encourages employees to perform efficiently and remain on task, improving a business’s productivity.

rate of productivity growth increase

net profit figures effect of using change in management styles as a strategy

Adopting a more restrictive management style increases the ability of a manager to utilise the business’s resources in an optimal manner. This can reduce the number of resources wasted, leading to a reduction in expenses and improvements in profit.

net profit figures increase

number of workplace accidents effect of using change in management styles as a strategy

Adopting a more restrictive management style increases a manager’s ability to provide direct instructions to employees and demonstrate how tasks must be completed. This ensures employees are properly shown how to use equipment,therefore reducing the likelihood of injury or illness from unsafe work practices.

number of workplace accidents decrease

change in management skills

A change in management skills involves a manager changing the way they approach business tasks and work with employees to respond to KPIs. The skills a manager prioritises should match their management style and the situation facing the business. For example, an autocratic manager would prioritise decision-making and planning skills to make effective decisions and achieve business objectives. In contrast, a participative manager would focus on interpersonal and leadership skills to communicate with, motivate and involve employees. By changing the skills they prioritise to suit the situation, managers can respond effectively to KPIs, improve business performance and achieve business objectives.

level of staff turnover effect of using change in management skills as a strategy

Utilising management skills that incorporate employee input, such as interpersonal, delegation, and communication, can allow employees to feel valued, connected, and trusted in the business as managers take the time to develop relationships with and give responsibility to employees. This can increase a business’s ability to retain its employees.

level of staff turnover decreased

rates of staff absenteeism effect of using change in management skills as a strategy

Utilising management skills that create a positive workplace environment such as interpersonal and leading, can encourage the development of positive relationships and enable employees to feel connected to the business as they are inspired by a shared vision. Therefore, employees are more likely to attend work as they align with the business’s values.

level of staff turnover decreased

rates of productivity growth effect of using change in management skills as a strategy

Utilising management skills that create structured and efficient processes, such as planning and decision-making, can ensure employees understand their role and remain on-task to complete their work, which can increase their efficiency.

rate of producitivity growth increased

net profit figures effect of using change in management skills as a strategy

Utilising management skills that provide a manager with a high degree of control, such as planning and decision-making, can allow the business to effectively manage resources and reduce waste-related expenses, contributing to higher profit margins.

net profit figures increase

number of workplace accidents effect of using change in management skills as a strategy

Utilising management skills that clearly convey instructions and work tasks, such as communication, can ensure employees are aware of their responsibilities and understand how to complete their roles safely, reducing the likelihood of injury from unsafe work practices.

number of workplace accidents decreased

cost cutting

is the process of reducing business expenses.Cost cutting involves reducing unnecessary expenses within a business’s operations to maximise profits and achieve business objectives. A business can use cost cutting to respond to KPIs such as net profit, level of wastage and rate of productivity growth. To implement cost cutting effectively, managers should review business expenses and identify unnecessary costs that can be reduced. This can lower operating costs, increase profitability and improve overall business performance, helping the business achieve its KPIs and objectives.

a business can cut costs by

• merging staff roles, removing roles entirely, or reducing the number of hours employees work to minimise wage expenses.

• shutting down business locations that are underperforming.

• stopping the production of goods with high amounts of unsold stock.

• sourcing materials from cheaper suppliers.

• recycling or reusing materials used in the production process.

net profit figures effect of using cost cutting as a strategy

Removing unnecessary expenses can increase a business’s net profit.

net profit figures increased

level of wastage effect of using cost cutting as a strategy

Eliminating resources that do not add value to the operations system can minimise the number of inputs required in production, therefore reducing the amount of unused resources.

level of wastage decreased

rate of productivity growth effect of using cost cutting as a strategy

Merging the roles of employees and streamlining operations processes can reduce the number of inputs required in the production process, therefore increasing a business’s overall efficiency.

rate of productivity growth increased

increased investment in technology

Increased investment in technology involves implementing automated and computerised processes into a business’s operations. Examples include automated production lines (APL), robotics, computer-aided design (CAD), computer-aided manufacturing (CAM), artificial intelligence (AI) and online services. Technology can be used to respond to KPIs such as productivity, market share and profitability. For example, a business with low performance and competitiveness could invest in robotics or an APL, allowing products to be produced faster and with fewer errors. This can improve efficiency and effectiveness, reduce costs, increase productivity and improve KPIs. Businesses that fail to invest in technology may fall behind competitors, reducing their competitiveness and overall performance.

number of sales effect of using increased investment in technology as a strategy

• APL, robotics, CAD, and CAM techniques can reduce the number of defects in production and improve consistency, increasing overall product quality.

• CAD and AI allow for greater levels of customer engagement and can improve a business’s ability to respond to customer needs.

• Online services can provide more efficient and convenient ways of communicating with customers to improve their customer experience.

number of sales increased

percentage of market share effect of using increased investment in technology as a strategy

• CAD can improve a customer's willingness to purchase goods or services as it can allow the customer to be involved in the design process.

• AI and online services may allow a business to better understand customers’ interests and needs, allowing it to develop a competitive advantage.

• APL, robotics, CAD, and CAM techniques can minimise production times and improve the quality of products, improving customer satisfaction.

rate of productivity growth effect of using increased investment in technology as a strategy

• APL, robotics, CAD, and CAM techniques can improve the efficiency of a business’s operations system as less time and labour resources may be required during the operations process.

• AI and online services can allow a business to better anticipate customer demand, allowing for more efficient use of resources.

rate of productivity growth increase

net profit figures effect of using increased investment in technology as a strategy

• APL, robotics, CAD, CAM techniques, AI, and online services can all decrease production costs as the number of employees required during the production process is reduced.

• CAD can improve sales revenue by designing goods that meet specific customer needs.

• Online services can provide additional avenues for customer engagement, encouraging repeat purchasing.

net profit figures

number of website hits effect of using increased investment in technology as a strategy

• Online services can be used to provide customers with a platform to conveniently purchase products or book services online, increasing the number of customers frequenting a business’s website.

• AI can provide a business with a better understanding of the demographics and needs of its customers. This can allow a business to ensure its online platforms align with customer needs, increasing the level of engagement with the business’s website.

number of website hits increased

level of wastage effect of using increased investment in technology as a strategy

APL, robotics, CAD, and CAM techniques can minimise the number of errors in production. Reducing the number of defective products produced means fewer resources are discarded, reducing levels of wastage.

level of wastage decreased

number of workplace accidents effect of using increased investment in technology as a strategy

APL, robotics, and CAM techniques can minimise the number of dangerous tasks that employees are required to perform, increasing their safety at work.

number of workplace accidents decreased

number of customer complaints effect of using increased investment in technology as a strategy

APL, robotics, CAD, and CAM techniques can minimise the number of errors and defects in production, whilst improving the overall quality of a business’s products, enhancing customer satisfaction.

number of customer complaints decreased

improving quality in production

Improving quality in production involves implementing processes that increase the perceived value of a good or service. A business can use quality strategies such as quality control (QC), quality assurance (QA) and Total Quality Management (TQM). These strategies can respond to KPIs showing poor financial performance or customer satisfaction. For example, if a business experiences an increase in customer complaints, it may indicate that customers are dissatisfied with the quality of its goods or services. By improving quality, the business can meet customer expectations, improve customer satisfaction, remain competitive and increase operational efficiency, helping to improve its KPIs and overall performance.

number of customer complaints effect of using improving quality in production strategy

Higher quality goods and services can increase customer satisfaction.

number of customer complaints decreased

number of sales effect of using improving quality in production strategy

Higher quality goods and services can better satisfy customer needs and increase the likelihood of repeat purchasing.

number of sales increased

net profit figures effect of using improving quality in production strategy

• Higher quality goods and services can increase customer satisfaction and improve sales, resulting in greater profits.

• Improving production quality can minimise the number of errors in production, leading to less wasted resources, thus reducing expenses.

net profit figures increased

percentage of market share effect of using improving quality in production

Higher quality goods and services can promote repeat purchasing as there are higher levels of customer satisfaction, increasing a business’s competitive advantage.

percentage of market share increased

level of wastage effect of using improving quality in production strategy

• Producing higher quality products can minimise errors in production and the amount of discarded resources, therefore minimising wastage.

level of wastage decreased

number of website hits effect of using improving quality in production strategy

Higher quality products can lead to greater customer satisfaction. In turn, this may increase customers’ interest in engaging with the business website.

number of website hits increased

rate of productivity growth effect of using improving quality in production strategy

Improving production quality can minimise the number of errors and defective products that a business produces, therefore decreasing its number of discarded resources and improving productivity.

rate of productivity growth

initiating lean production techniques

Initiating lean production techniques involves adopting lean management strategies to reduce waste and improve customer value. A business can use pull, one-piece flow, takt and zero defects to achieve lean production. Lean production can be used to respond to KPIs such as low productivity and high wastage. For example, using the pull strategy ensures that resources are only used when needed to meet customer demand, reducing unnecessary use of time and materials. This can increase productivity, minimise waste and improve efficiency. Lean production can also support environmental sustainability and CSR, which can enhance the business’s reputation and further improve its performance and KPIs.

level of wastage effect of using improving quality in production strategy

• By implementing pull, businesses will only produce goods and services when customer orders are received, minimising idle stock and the number of unused resources that are discarded.

• Streamlining processes in the operations system, through one-piece flow and takt,can allow a business to efficiently utilise inputs and minimise wastage.

level of wastage decreased

percentage of market share effect of using improving quality in production strategy

• A business’s operations system can become more adaptable, allowing it to produce high-quality goods and services in a manner that addresses changing customer needs. This can increase a business’s overall customer satisfaction and competitiveness.

• A business that adopts lean management and demonstrates CSR practices is likely to attract customers from competitors, as consumers are aware of how the business’s activities positively impact the environment and community.

percentage of market share increased

rate of productivity growth effect of using improving quality in production strategy

Inputs are used more efficiently to produce outputs as the operations system is streamlined when a business implements takt and one-piece flow.

rate of productivity growth

net profit productivity growth effect of using improving quality in production strategy

• Implementing pull can reduce the amount of idle stock and excess inventory,reducing business costs.

• There is minimal wastage as business processes are coordinated and resources are used efficiently, consequently reducing expenses.

• Continually aiming to improve product quality, through zero defects, results in fewer errors in the operations system, consequently minimising costs associated with discarded materials.

net profit figures increased

number of website hits effect of using improving quality in production strategy

Promoting the use of sustainable and environmentally friendly practices can attract more customers to a business’s website as they are more likely to engage with socially responsible businesses.

number of website hits increase

number of customer complaints effect of using improving quality in production strategy

A business that strives for zero defects and constantly looks for ways to improve its quality can minimise its number of defects in production and improve overall customer satisfaction.

number of customer complaints decrease

number of sales effect of using improving quality in production strategy

• By implementing lean management strategies a business can provide a faster, higher quality customer experience and increase its number of repeat purchases.

• Through minimising waste in production, a business can improve its reputation by demonstrating a commitment to sustainable operations, thus increasing sales.

number of sales increased

redeployment of resources (natural, labour and capital

involves reallocating natural, labour, and capital resources to different areas of the business to improve productivity and effectiveness.

Natural resources can be reused, recycled or repurposed to minimise waste. For example, a farmer could redeploy land to produce a different product. Labour resources involve transferring employees to another area of the business, often when technology makes their original position redundant. The employee may require training for their new role, allowing the business to retain their knowledge and skills. Capital resources involve using physical assets, such as old machinery, for a different purpose instead of selling them. Redeploying resources allows a business to retain and make better use of its resources, improving efficiency, productivity and overall performance, which can help achieve its KPIs.

net profit figures effect of using improving quality in production strategy

Reallocating resources reduces inefficiencies in the operations system, thus allowing for optimal use of the business’s resources and increased profit margins.

net profit figures increased

levels of wastage effect of using improving quality in production strategy

Reallocating resources increases productivity and reduces the number of resources that are wasted in a business’s operations system.

level of wastage

rate of productivity growth effect of using improving quality in production strategy

When labour and capital resources are reallocated, it can result in a more productive use of resources by ensuring that employees and machinery are no longer idle.

rate of productivity growth increase

rates of staff absenteeism effect of using improving quality in production strategy

Reallocating labour resources to another area of business where they have different roles and responsibilities can motivate employees to attend work.

rates of staff absenteeism

level of staff turnover effect of using improving quality in production strategy

Reallocating labour resources to another area of business where they have different roles and responsibilities can motivate employees and increase job satisfaction, therefore encouraging them to remain at the business.

level of staff turnover decreased

innovation

Innovation is the process of altering and improving existing products or procedures, or creating new ones. A business can use innovation to meet customer needs, enter new markets and improve business performance. Innovation can involve developing new goods and services, using unique marketing techniques or introducing faster and more productive operating methods. When responding to KPIs, innovation can help a business meet market needs and gain a competitive advantage, leading to increased sales, market share and net profit. Innovation can also increase customer interest and loyalty while improving the efficiency and effectiveness of operations. By continually innovating, a business can seek new opportunities, grow its brand and strengthen its position in the market.

number of sales effect of using innovation strategy

Developing innovative goods and services may allow a business to better meet customer needs and allow the business to establish a competitive advantage through its unique offerings, therefore attracting more customers.

number of sales increased

net profit figures effect of using innovation strategy

• A business that promotes and sells innovative products is likely to attract and retain more customers as their needs are readily satisfied by the business, therefore, generating more sales and profits.

• Implementing innovative production techniques can allow a business to reduce its production costs, therefore increasing profit margins.

net profit figures increased

percentage of market share effect of using innovation strategy

• A business that implements innovative production techniques may be able to reduce its production costs. This can allow the business to gain a competitive advantage by enabling lower prices to be offered to customers.

• Creating innovative products can attract more customers to a business and therefore increase its proportion of total sales in the industry compared to its competitors.

percentage of market share increased

rates of staff absenteeism effect of using innovation strategy

Employees may be more motivated and fulfilled if they are involved in the design and development of innovative products, increasing their job satisfaction and commitment to their work.

rates of staff absenteeism decrease

level of staff turnover effect of using innovation strategy

The development of innovative products that benefit society and the environment may provide value and fulfilment to employees, therefore decreasing the likelihood of them leaving the business.

level of staff turnover decreased

number of customer complaints effect of using innovation strategy

Implementing innovative technology in a business’s operations system can improve the quality of its outputs, therefore, improving customer satisfaction levels through minimising the number of faulty products received.

number of customer complaints decreased

number of website hits effect of using innovation strategy

A business that promotes its products with unique and engaging marketing techniques may attract more customers to its online platform.

number of website hits increased

rate of productivity growth effect of using innovation strategy

Utilising innovative production techniques can minimise the number of inputs required for production, thus increasing efficiency.

rate of productivity growth increased

level of wastage effect of using innovation strategy

A business that implements innovative technologies and production techniques in its operations system may improve production quality and minimise the number of discarded materials and resources.

level of wastage decreased

number of workplace accidents effect of using innovation strategy

Utilising innovative technology that can perform tedious or dangerous tasks may increase employee and customer safety, therefore reducing the number of injuries and incidents that occur in the business.

number of workplace accidents

global sourcing of inputs as a businesss opportunity

Global sourcing of inputs involves a business acquiring raw materials and resources from overseas suppliers.

Global sourcing of inputs involves a business purchasing resources and supplies from overseas suppliers to obtain higher-quality or lower-cost inputs. This can reduce production and operating costs, allowing the business to offer products at lower prices and gain a competitive advantage. Global sourcing can also provide access to unique or authentic resources that may not be available locally, helping the business better satisfy customer needs. As a result, global sourcing can increase profit margins, sales and market share, improving overall business performance and helping the business achieve its KPIs.

net profit figures effect of using global sourcing of inputs as a business opportunity strategy

A business can source its inputs at a cheaper price from overseas suppliers.This can reduce production costs and increase profit margins.

net profit figures increase

number of sales effect of using global sourcing of inputs as a business opportunity strategy

• Sourcing authentic and unique resources that are not available domestically can provide a business with a competitive advantage and entice customers to purchase its products.

• Globally sourced inputs may be of a higher quality than domestic resources, therefore increasing the value of the final product and improving customer satisfaction.

number of sales increased

percentage of market share effect of using global sourcing of inputs as a business opportunity strategy

Offering customers products that have been produced using authentic, unique, or higher quality globally sourced inputs can allow a business to develop a competitive advantage and generate a higher proportion of sales in its industry.

percentage of market share increase

number of customer complaints effect of using global sourcing of inputs as a business opportunity strategy

Using higher quality resources that have been globally sourced can increase the overall value of the final output and minimise the number of defective products produced, thus increasing customer satisfaction.

number of customer complains decrease

number of website hits effect of using global sourcing of inputs as a business opportunity strategy

• A business that promotes and highlights its use of authentic, globally sourced resources that cannot be obtained locally may attract more customers to its online platform.

• Globally sourced inputs that are of a higher quality and lower price can be promoted online and consequently attract more customers to a business's website.

overseas manufacture as a business opportunity

Overseas manufacture involves a business producing goods outside of the country where its headquarters are located

Businesses that move their manufacturing to an overseas location can take advantage of skilled labour and lower operating costs, while potentially improving the quality of their output. When responding to KPIs, overseas manufacture can increase net profit figures and customer satisfaction. For example, a business with high labour costs can relocate manufacturing overseas, where employee wages may be lower than in Australia. This reduces operating expenses, allowing the business to lower its prices while maintaining its desired profit margin, giving it a competitive advantage. Additionally, using highly skilled overseas workers may improve the quality of the final product, increasing customer satisfaction. Overseas manufacture can also allow a business to enter new international markets more quickly, helping it become a global brand and competitor. Overall, overseas manufacture can reduce operating costs, improve product quality, increase customer satisfaction and increase net profit.

net profit figures effect of using overseas manufacture as a business opportunity strategy

A business can minimise its labour expenses and operation costs by manufacturing overseas, therefore increasing its ability to make a profit.

net profit figures increase

number of sales effect of using overseas manufacture as a business opportunity strategy

• Minimising expenses through manufacturing overseas may allow a business to offer lower prices to customers, which can increase customer satisfaction, increase sales, and provide the business with a competitive advantage.

• Utilising highly skilled overseas workers in the operations system may increase the quality of a business’s final output, thus increasing customer satisfaction and sales.

• Implementing overseas manufacturing may allow a business to enter into new global markets, thus increasing its brand recognition, whilst potentially enhancing its sales.

percentage of market share effect of using overseas manufacture as a business opportunity strategy

Reducing production costs through manufacturing overseas can allow a business to offer lower prices whilst maintaining its profit margin. Offering lower prices can allow a business to increase its competitiveness and improve its proportion of total sales in its industry.

percentage of market share increase

number of customer complaints effect of using overseas manufacture as a business opportunity strategy

Relocating its manufacturing overseas may provide a business with access to highly skilled employees who have greater expertise in producing its output, therefore, the quality of a business’s final product can increase, improving customer satisfaction.

number of customer complaints decreased

number of workplace accidents effect of using overseas manufacture as a business opportunity strategy

Overseas workers may be more skilled and trained in using equipment, therefore, minimising the number of injuries and incidents that occur in the workplace.

number of workplace accidents decreased

rate of productivity growth effect of using overseas manufacture as a business opportunity strategy

Highly skilled overseas workers may be able to manufacture outputs quicker and more accurately, thus reducing the amount of time and resources wasted in operations.

rate of productivity growth increased

global outsourcing as a business opportunity

Global outsourcing involves transferring specific business activities to an external business in an overseas country

Global outsourcing can provide a business with the opportunity to focus on its core business objectives, minimise operating costs, gain expertise and improve the quality of its operations system. When responding to KPIs, global outsourcing can increase profitability and customer satisfaction. For example, a technology business could outsource its customer service overseas, where wages may be cheaper, reducing operating costs. This allows the business to focus its resources on designing innovative products that better satisfy customer needs. Additionally, a business can access external expertise, such as financial or legal advice, which can improve decision-making and planning. Overall, global outsourcing can reduce costs, increase profitability, improve the quality of operations and enhance customer satisfaction.

net profit figures effect of using global outsourcing as a business opportunity strategy

A business can minimise its operations expenses through global outsourcing as the cost of wages is often cheaper overseas, therefore increasing the business’s ability to make a profit.

net profit figures increased

number of sales effect of using global outsourcing as a business opportunity strategy

When a business globally outsources activities that do not directly contribute to the achievement of its objectives, it can focus more time and effort on developing outputs that meet and satisfy customer needs, allowing for increases in sales.

number of sales increased

percentage of market share effect of using global outsourcing as a business opportunity strategy

Global outsourcing can allow a business to put more focus towards its core business activities and developing products that better satisfy customer needs, thus improving competitiveness and its proportion of sales in the market.

percentage of market share

rates of staff absenteeism effect of using global outsourcing as a business opportunity strategy

Outsourcing tedious and unenjoyable tasks overseas may improve levels of employee satisfaction and increase their willingness to attend work.

rates of staff absenteeism decreased

rates of productivity growth effect of using global outsourcing as a business opportunity strategy

When a business outsources its tasks overseas, it can utilise the expertise of highly skilled workers who are often capable of performing tasks more efficiently than local workers, allowing the business to use its time more productively.

rate of productivity growth increased

level of wastage effect of using global outsourcing as a business opportunity strategy

Outsourcing tasks overseas can allow a business to complete tasks more productively and minimise the amount of time and resources wasted by a business.

level of wastage decreased