Business Change Basics
What is a business change?
any alteration to a business and its working environment by adopting a new idea or behaviour
Define proactive change
Change that is initiated before issues arise (planned)
What does KPI stand for?
Key Performance Indicator
If the number of customer complaints increase, what might that suggest?
A problem with product/service quality
Why is an increased number of workplace accidents a red flag?
Indicates safety issues, low compliance, or lack of training.
Name one internal and one external pressure that can cause a business to change
e.g., staff morale & competitor activity
Define reactive change
the business is impacted by pressures from the business environments and then responds as a result (uplanned).
Which KPI shows if staff are frequently not coming to work?
Rates of staff absenteeism
Level of staff turnover is increasing. What might this signal?
Low job satisfaction, poor culture, or better external offers
Why might high rates of staff absenteeism be a concern?
Low morale, stress, or poor management
What is the difference between incremental and transformational change?
incremental - small
transformational - major
Provide an example of a proactive approach to change
Woolworths - sustainable packaging
What does ‘net profit figures’ reveal about a business?
Its financial performance after expenses.
If the rate of productivity growth increases, what does this tell you?
The business is becoming more efficient
What could a decline in website hits suggest about your marketing or online presence?
Ineffective digital marketing or reduced customer interest.
Why is it important for businesses to manage change effectively?
To remain competitive, retain staff, meet objectives, etc.
Why might a business choose to react instead of plan ahead?
Due to lack of resources, time, or foresight
What KPI indicates how efficiently a business is using its resources?
Rate of productivity growth or level of wastage
A sudden drop in percentage of market share could suggest what?
A competitor's gain or poor marketing/product appeal.
What might be happening if the number of sales is stable, but percentage of market share drops?
The market is growing and competitors are gaining more new customers.
Describe one way change can influence competitive advantage.
Adopting new tech/processes can improve efficiency or quality.
Explain how being reactive can damage brand reputation.
Delays or poor responses can frustrate customers and stakeholders.
Choose 2 KPIs and explain how they can be linked.
High staff absenteeism can lead to a lower rate of productivity growth.
A business's net profit drops even though sales are high. What might be the issue?
High expenses or inefficiency
Identify 3 red flag KPIs and suggest a strategy for improvement.
High turnover (improve culture), low profit (cut costs), many complaints (train staff).