VCE business management Unit 3 & 4 (notes)

VCE business management Unit 3 & 4 value for money in buying the product -Providing better support for customers so the business gains a reputation for its after-sales service e.g. extended warranties -Highly effective sales and marketing campaigns -Improved delivery systems e.g. Domino's 20 minute delivery guarantee What is leadership? - correct answer Leadership is the ability to influence and motivate employees of a business to achieve objectives. -a leader cannot be one dimensional and good leaders will be able to adapt and modify their behavior depending on the situation they are confronted with. -Leadership is a challenge at the best of times and even more critical during periods of change Why is leadership so important during change?* - correct answer -When change occurs, employees and other stakeholders will be affected. -Employees may be required to learn new skills, processes or behaviours due to change. -This can cause resistance as these changes will require a shift away from what they have previously done to a new, unfamiliar state. -The role of leadership in these situations is to help overcome this resistance and successfully implement the change. The actions of a good leader during periods of change. - correct answer Good leaders: -Effectively communicate the change and the reasons behind it on a continual basis *often 3 times more then what they think is necessary* - Be willing to listen to and address any employee concerns -Proactively resolve conflicts that may arise as change is implemented -Be a source of motivation for the acceptance of change -Balance the needs of the business with the needs of employees Management strategies to respond to KPIs *background info* - correct answer Kpis and data need to be monitored over time in order to identify and track trends. -If trends are tracked, it will provide a business with a sound foundation to make any necessary change in the future. - A manager or business owner needs to take the following considerations: - Apply a threshold - When is a change worth noting? - Investigate the variation and try to determine what the reasons for kpi performance Management strategies to respond to KPIs - correct answer In order to implement change sucessfully, management must develop a number of different strategies to respond to data, business trends and kpis, these include: -Staff training -Staff motivation -Change in management style or skills -Increased investment in technology -Improving quality in production -Cost cutting -Initiating lean production techniques -Redeployment of resources(natural,labour,capital) Staff training (management strategies to respond to kpis) and which kpis it responds to - correct answer Staff training - is the process of improving an employee's level of skill and knowledge This strategy responds to: Number of sales(Training staff how to serve customers can increase the n.o of sales) Net profit figures(Training staff can increase productivity and thus increase revenue) % of market share(Training staff can lead to more sales and profit thus increasing share) N.o of customer complaints(Training staff how to serve customers can reduce comp) Rate of productivity growth(Training staff how to better use resources can increase r.o.p) Staff Motivation (management strategies to respond to kpis) and which kpis it responds to - correct answer Staff motivation - The willingness to have employees expend effort over a sustained period of time e.g performance related pay and non-financial rewards. This strategy responds to: Level of staff turnover Rate of staff absenteeism N.o of customer complaints Number of sales Net profit figures % of market share Change in management styles and skills (management strategies to respond to kpis) and which kpis it responds to - correct answer Change in management styles and skills - The manner and approach adopted when dealing with employees is altered for the purpose of improving performance. This strategy responds to: Increased investment in technology (management strategies to respond to kpis) and which kpis it responds to - correct answer Increased investment in technology - purchasing new or improving on existing software. (CAD,CAM), hardware (laptops, tablet devices, phones), Robots or machinery