3.4- Assessing Competitiveness

Question 1

Causes of change in business

Answer 1

changes in organisational size
2. poor business performance
3. new ownership
4. transformational leadership
5. the market and other external factors (PESTLE)

Question 2

What are problems with changes in organisational size

Answer 2

• Maintaining the company culture
• Motivating staff during the expansion
• Increased labour costs with hiring of new staff
• Training of new staff

Question 3

What may a business do due to poor business performance

Answer 3

The business will need new objectives and a new direction

• The business will need some new strategies to compete (Ansoff’s)

• The business will need to look at what is necessary to improve performance this may mean delayering or redundancies

Question 4

What may happen due to a change ownership

Answer 4

There may be significant role duplication (two marketing managers for example) so there may need to be redundancies

• There may be a clash of cultures

• There may be issues of communication between the two businesses as they change and merge