VCE BM U4 AOS1 Vocabulary

obstacles or high costs that prevent new competitors from entering an industry

• Barriers to entry

• Economies of scale

• Legislation as a restraining force

• Industrial action

the alteration of behaviours, policies and practices of a business.

• Business change

• Driving force

• Restraining force

• Porter's generic strategies

the conditions or attributes that places a business in a superior position compared to its immediate competitors

• Competitive advantage

• Barriers to entry

• Differentiation

• Innovation

other businesses within the same industry that sell similar goods or services to a business

• Competitors

• Globalisation

• Industrial action

• External environment

this factor will help make changes happen, because all businesses must respond appropriately to changes made by rival firms to survive

• Competitors as a driving force

• Globalisation as a driving force

• Innovation as a driving force

• Legislation as a driving force

purchase products or services primarily based on price. If another business offered a cheaper alternative, these customers would likely switch immediately

• Cost-conscious customers

• Competitors

• Perceived value

• Societal attitudes

offers customers unique services or product features that are of perceived value to customers which can then be sold at a higher price than competitors

• Differentiation strategy

• Perceived value

• Point of differentiation

• Innovation

the factors within or outside the business environment which promote change. When these factors are dominant, the proposed change is likely to succeed

• Driving forces

• Restraining forces

• Number of sales

• Key performance indicators

the cost savings a business experiences when it produces a large number of goods

• Economies of scale

• Barriers to entry

• Expenses

• Productivity

this factor will help make a change happen if they believe a proposed change will improve their working conditions or help achieve their personal goals

• Employees as a driving force

• Managers as a driving force

• Cost-conscious customers

• Societal attitudes as a driving force