10.1a Causes Of And Pressures For Change Flashcards
What does change management involve?
Ensuring that a business responds to the environment in which it operates
Causes and pressures of change:
- Current technology
- Profitability (growth)
- Objectives of stakeholders - how they want the business to develop
Types of change:
- Internal change
- External change
- Incremental change
- Disruptive change
Examples of internal change:
- New technology
- Outsourcing
- Organisational structure
How can a business prepare for external change?
Contingency planning
Internal forces for change:
- Desire to increase profit
- Reorganisation to increase efficiency
- Change organisational culture
External forces for change:
- Customer demand
- Competition
- Legislation and tax
- Economy
- Technological change
What are incremental changes?
Small adjustments made over a long period of time
What is a step change?
A radical change in one fell swoop
Example of a step change:
Google’s radical innovation of the internet
What are disruptive changes?
Irreversible changes to products, processes and markets - it alters the future completely
Examples of disruptive changes:
- Internet
- Telephone
Reasons businesses need to change over time:
- Might lose their competitive edge
- Failure to meet customer needs e.g. HMV
- Leads to improved working conditions and job satisfaction
What is an influence on the amount of change a business will see?
The type of business - innovative business may keep coming up with better ways
