3.6 Managing Change

Question 1

What are the internal causes of change?

Answer 1

1. A change in business size
2. Poor performance
3. New ownership
4. Transformational leadership
5. Business restructuring

Question 2

What are the external causes of change?

Answer 2

1. Changes in the market
2. Social change
3. Political change
4. Economic change
5. Technological change
6. Legal change
7. Environmental change

Question 3

What can change have possible effects on?

Answer 3

1. Competitiveness
2. Productivity
3. Financial performance
4. Stakeholders

Question 4

What is change management?

Answer 4

Change management involves the identification, organisation and implementation of new methods of working to a business

Question 5

What factors affect business change?

Answer 5

Organisational culture
Organisation size
Pace of change
Resistance to change

Question 6

What is scenario planning?

Answer 6

Scenario planning is the process of anticipating possible changes in a business’s situation and devising ways of dealing with them

Question 7

What is risk mitigation?

Answer 7

Risk mitigation plans identify and assess risks and then prioritise and plan responses to those risks

Question 8

What is a business continuity plan?

Answer 8

A business continuity plan sets out how a business will operate following a serious incident or disaster and how it expects to return to normal as soon as possible

Question 9

What is succession planning?

Answer 9

Succession planning involves identifying and developing current employees who have the potential to move into key roles in the future