Business Change & KPIs
________ is a financial indicator that measures the surplus after costs have been deducted from revenue earned.
Net Profit Figures
_______ the number of injuries and unsafe incidents that occur at a work location over a period of time.
Number of Workplace Accidents
Force Field Analysis was developed by who?
Kurt Lewin
Which force promotes change and which hinders change?
Driving forces - promote
Restraining - hinder
Porter's Generic theory ensure business' gain a ___
competitive advantage
When a business is performing successfully the Number of Customer complaint is?
Low
What KPIs reflects staff morale?
Level of staff turnover
or
Rate of staff absenteeism
What are the two key principle of the theory?
Driving and restraining forces
Name two driving forces.
managers, employees, competitors, legislation, pursuit of profit, reduction of costs, globalisation, technology, innovation and societal attitudes
What are the two strategies this theory suggests?
Low cost & differentiation
When it comes to change business are either ____ or ____
Reactive or Proactive
Which KPI indicates a business is efficient in their production?
Level of wastage
Pick the right answer:
By conducting a force field analysis, businesses undergoing change can:
a predict successful change when the strength of driving forces and restraining forces match.
b go ahead with any proposed change regardless of the strength of the forces identified.
c identify whether the proposed change will be effective by assigning scores to driving and opposing factors to the change.
d proceed with proposed business change by strengthening restraining forces and limiting driving forces until restraining forces overcome driving forces.
c identify whether the proposed change will be effective by assigning scores to driving and opposing factors to the change.
Name three restraining forces
managers, employees, time, organisational inertia, legislation and financial considerations
Obtaining cheaper supplies from overseas.
Low cost
Define Percentage of market share.
Measures a business’s share of total sales within an industry for a particular good or service, expressed as a percentage.
Which KPIs effect the expenses of the business?
• rates of staff absenteeism
• level of staff turnover
• number of workplace accidents
• level of wastage
• rate of productivity growth
ALL
Give one advantage and one disadvantage of Lewin's theory.
Advantage:
- Businesses can examine if a proposed change will be successful.
- Businesses can potentially save time by promoting the main driving forces and limiting the main restraining forces.
- Businesses can potentially save money by only implementing change where success is likely.
Disadvantages
- Employees may be unhappy if driving forces exceed restraining forces and change still occurs.
- Employees may be unhappy if driving forces exceed restraining forces and change still occurs.
Give an example of a driving force in a business you have study.
Manager – Woolworths’s CEO Brad Banducci is a driving force for the closure of 30 stores as his role is to improve the profitability of the business.
• Reduction of costs – A reported loss of $110 million in 2018 is another driving force for Big W to reduce its costs by closing down 30 stores.
• Competitors – Kmart’s effective pricing and promotions are a driving force for the closure of 30 Big W stores.
• Globalisation – Reduced trade barriers have allowed Australian customers to shop online from international retailers such as Amazon.
Give an example of a differentiation business and how you know.
Business may very.
Advertising a brand to portray a certain image and values.
Creating products or services designed for a specific market.
Using materials that are of higher quality in the production process.
Introducing technological innovations into current products.
Define Business Change
Is the transformation of a business’s policies, processes or behaviours.
or
The adoption of a new idea or behaviour by a business.
Define Rate of Productivity Growth
the amount of inputs and outputs that are discarded during the production process
Name all 4 steps in the Force Field Analysis
1.Weighting
2.Ranking
3.Implementing a response
4.Evaluating the response
How do employees act as driving forces and restraining forces?
Driving force: any proposed change that can improve the working conditions of employees will see them become a driving force.
Restraining force: Employees may resist a business change if the outcome is uncertain, it affects their job security or they fail to see a reason for the change. Employees may even actively oppose these changes by carrying out industrial action.
Define low cost strategy.
Lower cost strategy is 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.