301 Change

Question 1

How to structure the 20 marker on section B?

Answer 1

Point
For example
Knock on effect
However
Because
Link to Q
X3
Conclusion

Question 2

What is change?

Answer 2

Process of moving business from where it is now to where it wants to be and internal/external factors which may affect this.

Question 3

What is internal change driven by?

Answer 3

Strategic direction.

Question 4

What is external change driven by?

Answer 4

Tactical changes in response to opportunities.

Question 5

How will you structure the 10 marker on section B?

Answer 5

Definition
Point
For example
Knock on effect
X2/3

Question 6

What is resistance to change?

Answer 6

Opposition from individuals and groups when faced with alterations to processes.

Question 7

Methods that businesses could use to increase R&D expenditure?

Answer 7

Sell shares
Increase gearing (take out loans)
Not pay dividends
Retained profit

Question 8

How can businesses support customers through changes?

Answer 8

Above and below the line promotion reduces resistance.

Question 9

4 ways a business could evaluate change management?

Answer 9

Customer satisfaction survey
Market share
Sales turnover
Labour turnover/ productivity
Profits

Question 10

What is the importance of managing change?

Answer 10

Reduces risk of losing market share for businesses in competitive markets
If business with poor cash flow fails to keep up, could lead to insolvency
New/smaller businesses can beat rivals

Question 11

What does the importance of managing change depend on?

Answer 11

Competition levels
Strength of brand rep
Capital available

Question 12

What are storey’s four methods of implementing change?

Answer 12

Negotiated total package - discuss and include stakeholders but do implement all at once.
Negotiated peacemeal initiatives- discuss and include stakeholders and implement step by step.
Imposed peacemeal initiative - stakeholders not included in decision but implemented step by step.
Imposed total package- stakeholders not included and everything implemented at once.

Question 13

Pro and con of negotiated total package?

Answer 13

Pro - employees feel motivated and included
Con - time consuming and compromising may change plans

Question 14

Pro and con of negotiated peacemeal initiative?

Answer 14

Pro - easy to monitor and motivates employees
Con - time consuming

Question 15

Pro and con of imposed peacemeal initiative?

Answer 15

Pro - can keep training at each point
Con - may lead to resistance

Question 16

Pro and con of imposed total package?

Answer 16

Pro - very quick and effective
Con - may upset stakeholders

Question 17

Explain each stage of Lewin’s change theory

Answer 17

Unfreezing - explain benefits, motivate and provide evidence for why change is good idea.
Change - training and support during transition
Refreeze - create new normal, targets, appraisals and celebrate successes.

Question 18

Things that cause a business to change externally?

Answer 18

Developments in technology
Market change in consumer tastes
Legislations
Changes in economy

Question 19

Things that cause a business to change internally?

Answer 19

Introduction of new technology
Change in management structure
Changes in size of business
Change in workforce