Business Change and Strategy Practices

Vocabulary flashcards covering business change concepts, KPI definitions, driving and restraining forces, and strategic management theories based on lecture notes.

Change

Any alteration in the internal or external business environment, such as behaviours, policies and practices.

Proactive change

Change that comes from within the organisation, where a business has a proactive intent to take action to gain competitive advantage or mitigate risks.

Reactive change

Change that occurs in response to data, a crisis or an external situation, allowing the business to rapidly adapt.

Jetstar Asia FY2025 Projected Loss

A projected loss of $35\,\text{million}$, with an expected underlying loss of $25\,\text{million}$ in the second half of the year.

Key Performance Indicators (KPIs)

KPI tools used to measure progress towards the achievement of business objectives.

Percentage of market share

The proportion of an industry's total sales that is earned by a company over a specific period of time.

Jetstar Asia Singapore Market Share

A decline from $27\%$ in $2010$ to approximately $15\%$ in $2025$ due to increased competition.

Net profit figures

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

Rate of productivity growth

The increase in outputs produced from a given level of inputs over a specific period of time, measuring company efficiency.

Number of sales

The total amount of goods and services sold in a given period of time.

Rate of staff absenteeism

The average number of days employees are not present at work when they are scheduled to work over a specified period of time.

Levels of staff turnover

The percentage of employees that leave a business over a specific period of time and must be replaced.

Level of wastage

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

Number of customer complaints

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

Number of website hits

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

Number of workplace accidents

The amount of injuries and unsafe incidents that occur at a work location over a specific period of time.

Interpret

To explain the meaning or significance of information.

Driving forces

Factors that apply pressure for a change to occur, such as owners, managers, competitors, and legislation.

Globalisation

The process by which governments, businesses and people across the globe become more interconnected, allowing increased international trade.

Innovation

Involves altering, improving or creating new products or procedures to gain a competitive edge.

Societal attitudes

The collective values, beliefs and views of the general public regarding consumer and employee expectations.

Restraining forces

Factors that prevent or hinder the opportunity for a business change, such as employees, time, and financial considerations.

Organisational inertia

The tendency for a business to resist change or remain on the same path by maintaining established ways of operating.

Financial considerations (Jetstar Asia)

Immediate costs of approximately $175\,\text{million}$ including redundancy, restructuring costs, and asset write-downs during the closure.

Lewin's Force Field Analysis

A theory used to determine whether a change should go ahead by analysing and weighting the effects of driving and restraining forces.

Porter's Generic Strategies

A framework suggesting businesses choose either lower cost or differentiation to gain a competitive advantage.

Lower cost strategy

A strategy focusing on appealing to price-conscious customers through high volumes of standardised products at low production costs.

Differentiation strategy

A strategy involving distinct attributes, such as those used in Project Sunrise or the Qantas Club, that allow a business to charge premium prices.