5i - Effects of changing on stakeholders

Question 1

Effect of change on managers

Answer 1

Positive

• Develop new skills by change
• Financial/non-financial rewards for a successful change.
• increased authority and responsibly.

Negative

• Increased workload and stress
• Los of job and financial security
• less authority and control

Question 2

Effect of change on employees

Answer 2

Positive Effects

• New opportunities and responsibilities can improve employee job
  satisfaction.
• May build long term job security and improve employee satisfaction if business change is successful.
• Better employment conditions or rewards can be provided if business change is successful.

Negative Effects

• May need to develop new complex skills and knowledge to keep their job which can increase stress levels.
• May lose their job and financial security due to the change.

Question 3

Effect of change on customers

Answer 3

Positive effects

• Better product or service quality can increase customer satisfaction.
• Reduction in the price of goods or services sold can increase customer satisfaction
• The practice of CSR may increase customer satisfaction.

Negative effects

• Lowering quality to save on costs of production may frustrate customers and reduce satisfaction.
• Increasing the price of goods or services may frustrate customers and reduce satisfaction.
• Discontinuing or changing a good or service may decrease customer satisfaction especially if it fails to meet their needs.

Question 4

Effect of change on suppliers

Answer 4

Positive effects
- May increase the amount of resources demanded by businesses which can increase sales for a supplier.

negative effects

• May decrease sales if businesses decide to switch to a different supplier or lower their volume of orders.
• May require adjustments in processes and supplies offered to meet the requirements of a business change.

Question 5

Effect of change on the general community

Answer 5

Positive effects

• Creation of more jobs can increase employment rates and improve society’s well being
• Increases customer traffic and sales of surrounding businesses if change involves opening or expanding into new areas.
• Greater ability to make donations to charity and contribute to social causes if business change is successful