5J – Change and stakeholders

Question 1

Effect of change on owners

Answer 1

Positive:
- A successful business change can provide a business owner with an increased return on their investment and greater financial security.
- A business owner may be perceived more positively by employees if they implement change successfully.

Negative:
- If change is unsuccessful, a business owner may experience personal and financial implications.
- A business owner may become overwhelmed and stressed by the increased workload and responsibilities that may be associated with business change.

Question 2

Effect of change on managers

Answer 2

Positive:
- Business change can provide opportunities for a manager to develop new skills or advance their career.
- A business may provide a manager with financial and non-financial rewards if the change is successfully implemented.

Negative:
- Increased workloads associated with change can lead to stress which may negatively impact a manager’s wellbeing.
- If a business change is unsuccessful, a manager may lose their job and financial security.

Question 3

Effect of change on employees

Answer 3

Positive:
- Employees may be provided with new responsibilities and opportunities for career advancement that improve their motivation and overall job satisfaction.
- If a business change is successful, employees may experience improved job and financial security.

Negative:
- A business change may require employees to develop complex skills and learn difficult processes, which may increase stress levels and negatively impact their wellbeing.
- If a business change is expected to result in redundancies employees may fear for their job or financial security.

Question 4

Effect of change on customers

Answer 4

Positive:
- If change improves the quality of a business’s goods and services, customers may experience increased satisfaction.
- Customer satisfaction may increase if the change allows the business to offer lower prices for its goods and services.

Negative:
- Customers may be dissatisfied if a business change increases the price of its products.
- If a business discontinues or changes a good or service, customer satisfaction may decrease if the new product fails to meet their needs.

Question 5

Effect of change on suppliers

Answer 5

Positive:
- Supplier demand may increase if a business requires a greater amount of resources to meet its production needs.

Negative:
- If a business decides to switch to a different supplier or discontinue a product, a supplier’s sales may decrease due to a lower volume of orders from the business.

Question 6

Effect of change on general community

Answer 6

Positive:
- If a business change creates job opportunities, local employment rates may increase which can improve the overall wellbeing of society.
- Business change that involves opening or expanding into a new area can increase customer traffic and sales for surrounding businesses.

Negative:
- A business change that results in redundancies may increase local
unemployment rates and poverty levels, thus negatively impacting societal wellbeing.
- If a business change involves store closure or relocation, customer traffic and sales for surrounding businesses may decrease.