bus man saccc

business change

business change is the alteration of behaviors, policies and practices of a business

what happens when a business is not managed optimally

when a business is not managed optimally, this can result in high levels of resistance

incremental change

occurs more frequently but is less traumatic to the business

radical change

results in major alteration of the business

proactive change

involves a business changing to void future problems or take advantage of future opportunities

reactive business change

involves a business changing in response to a situation or crisis

benchmarking

setting a standard to measure against

elements of KPIS

relevant, valid, reliable, deliver useful info, must be comparative to other data over time

KPI

is a criterion that manages use to assess the performance of a business in achieving their objectives over a set period of time

percentage of market share

measures the proportion of a business total sales compared to the total sales within an industry, expressed as a percentage figure

net profit

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

rate of production growth

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

number of sales

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

rates of staff absenteeism

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

level of staff turn over

refers to the rate in which employees are leaving the business and need to be replaced

level of wastage

refers to the amount of resources and materials that are discarded by the business during the production process

number of customer complaints

is the number of customers who notified the business of their dissatisfaction over a specific period of time and expressed their concerns to the business

number of workplace accidents

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

number of website hits

is the amount of customer visits that visit a business online platform recieves for a specific period of time

force field analysis

is a theoretical model that determines if a business should proceed with a proposed change

identity forces

driving forces are those which support the change, restraining forces are those which work against the change

weighting

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

ranking

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

implementing a response

an action plan that details what needs to be done, who is responsible, the resources required etc

evaluating a response

is the final stage in the force field analysis and it involves determining whether or not the change has been succesfully implemented

what are driving forces

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

owners

often make large scale decisions for the future and possible expansion of the business

they can act as a driving force for change if they believe change will be beneficial to future business performance

managers

they are responsible for overseeing the implementation of policies and procedures in daily operation as well as the long term goals of the business

they need to be strong leaders

employees

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

individual employees may focus their attention on their working conditions training wage and the benefit that the business can offer them

competitors

when competitors change prices, use new tech or run advertising campaigns, this can affect the performance of other businesses in the market

legislation

a business may be forced to change if new legislations is introduced, if current operations breach the new legislation, a business will have no choice but to change the way it operates

pursuit of profit

businesses looking to solely make money implement changes within the buiness to increase their profits

reduction of cost

can act as a driving force as businesses ma implement change to improve efficiency and effectiveness and reduce unnecessary costs that may arise in business processes

globalization

is process where economic boundaries are removed business begin operating on an international scale

technology

is constantly changing and evolving which puts pressure of business to initiate change

not making use of this can cause a business to fall behind however the flip side to this is the high costs associated with constantly upgrading technology

innovation

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

societal attitudes

societal attitudes are the changing collective values beliefs and views of the general public

restraining forces

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

managers regarding restraining forces

are the owners/leaders or upper management that often introduce change to a business, some managers may not believe that a change is necessary or may not believe in the change itself. zthis will therefor work against proposed changes

employees regarding restraining forces

fear amongst employees can cause a resistance to change

time

insufficient time/ changes too long to implement, as staff may need specific training to properly introduce change

organsiastional interita

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

a business may have to change leadership, restructure the business or create work environments that promote new directions

legislation regarding restraining forces

business must ensure they comply with laws and regulations to avoid fines, suspensions or even closure

financial consideration

costs associated with change may put the business under financial strife and therefor may not be feasible, financial costs can be associated with new equipment, new facilities, redundancies training costs, recruitment costs

the five competitive forces

supplier power: how easy it is for suppliers to drive costs up

buyer power: how powerful buyers are in driving prices down

competitive rivalry: looks at the number and capability of competitors

threat of substitution: how easy it is for customers to find similar good or service

threat of a new entry: how easy it is for new competitors to enter the market

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

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

what are all KPIS

percentage of market share

net profit

number of sales

rate of productivity growth

number of sales

rates of staff absenteeism

level of staff turnover

level of wastage

number of customer complaints

number of workplace accidents

number of website hits

what are all restraining forces

managers

employees

time

organisational inertia

legislation

financial consideration

what are all driving forces

owners

managers

employees

competitors

legislation

pursuit of profit

reduction of costs

globalisation

technology

innovation

societal attitudes

what is a force field analysis

determines if a business should proceed with a proposed change

what are the steps of a force field analysis

identify forces, weighting, ranking, implementing a response, evaluating a response