Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

business component three > business change > Flashcards

business change Flashcards

1
Q

what is change?

A
  • dynamic nature of the market which needs to be carefully managed.
  • change is usually met with resistance.
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

what are some common causes of change?

A
  • changing business size
  • change in ownership
  • new technology
  • legislation
  • economic change
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

what can cause internal causes of change?

A

management policies and styles, business culture, employee attitudes
-business have degree of control

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

how can a business identify threats and opportunities?

A

sufficient business strategies

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

what are factors of the internal environment?

A
  • resources
  • corporate culture
  • stakeholder goals
  • employee mix
  • management style
  • corporate objectives
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

what are benefits of changes in business size?

A

benefit from labour and managerial economies of scale

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

what are the downsides to changes in business size?

A

risk of staff being alienated and lack of communication

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

what are the two types of growth?

A

organic and inorganic (internal and external)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

what is organic growth?

A

internal growth

  • slowly add to product range
  • investing in new tech
  • developing distribution channels
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

what can organic growth prevent?

A

cash flow problems and limits firms exposure to risk

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

what is inorganic growth?

A

external growth, through a merger or takeover

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

what can inorganic growth put pressure on?

A

liquidity, debtor management and staff (need to develop new skills).

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

how is external growth usually financed?

A

through external investors, which may lead to new management structures and corporate objectives

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

what can new leaders bring to a business?

A

new firm culture, new strategic direction (but this depends upon level of business support).

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

what are external causes of change?

A

factors outside direct influence and control of a business (PESTEL)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

what is PESTEL?

A
  • political
  • economical
  • social
  • technological
  • environmental
  • legal
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

what does a business need to have to adapt to change and identify SWOT?

A

flexible and dynamic strategies

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

what is the most significant external change in recent years?

A

globalisation i.e., growth of China and India

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

what are the factors of the external business environment?

A
  • population change
  • economic change
  • technology change
  • market change
  • legislation change
  • consumer change
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

what has driven a lot of market change?

A

development of technology i.e., CDS to digital streaming

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

how can competition change the structure of a market? (example)

A

growth of European union, emergence of free trade areas changed structure of markets.

22
Q

how do changes in population encourage change in markets?

A

changes to potential supply of labour, ageing in countries could result of shortage of workers and change in demand.

23
Q

how do changes in consumer tastes result in changes in the market?

A

creates constant opportunities and threats that a business has to prove themselves responsive to.

24
Q

what can changes in the economy cause for a business?

A

significant impact on success or ultimate failure

  • i.e., 2008 crash caused thousands of people to lose their jobs
  • demise of businesses left gaps in market of money conscious customers i.e.m Aldi, Poundland
25
Q

how do businesses view change?

A

-prefer stability, acknowledge its inevitability, focus on pace of change

26
Q

what is rapid change?

A

unplanned change such as volcanic eruption causing travel chaos and restricting access to supplies, firms should have contingency plans.
-response to change

27
Q

what is incremental change?

A

planned change enabling managers to anticipate impact of changes and minimise adverse effects through consultation with employees, suppliers and other investors.
-structured and timetabled

28
Q

what is disruptive change?

A

occurs when industry undergoes radical change that modifies how all firms operate i.e., Uber on taxi industry

29
Q

what are the effects of change?

A 
new production methods
development of new products
having to satisfy new legislation
retraining the workforce
identification of new markets
30
Q

what are the effects of changing production methods? (job to batch)

A
  • cost of equipment
  • additional working capital
  • staff demotivation
  • loss of USP
31
Q

what are the effects of changing production methods? (job or batch to flow)

A
  • cost of equipment
  • production delays
  • cash flow problems
32
Q

what are the effects of changing production methods? (from batch or flow to cell)

A
  • expensive CAM methods

- recruitment of flexible and adaptable staff, staff training

33
Q

what is needed by a business for development of new products?

A

strategic planning from a business (assessment of economic changes, greater R+D)

34
Q

what are common areas of change in legislation?

A

health and safety
pensions
national minimum and living wage
childcare schemes

35
Q

how can technology bring about change in the workforce?

A

need for staff to be trained (expensive)
automation replacing jobs
employees will need to become multi-skilled

36
Q

what are methods of effective change management?

A

employee preparation
increased R+D spending
additional capital investment

37
Q

what is implementation?

A

process of bringing about change and the strategies a business needs to employ to maximise chances of any change being successful

38
Q

what is J. Storey’s 4-Stage Model?

A

a model identifying some of the different strategies that a firm’s leadership can use when implementing change.

39
Q

what are the four stages of J. Storey’s Four Approaches?

A
  • total imposed package (seniors impose restructuring straight away)
  • imposed piecemeal initiatives (seniors impose change in stages)
  • negotiated total packages (change agreed via negotiation w staff).
  • negotiated piecemeal packages (gradual implementation will be negotiated at each stage).
40
Q

what are the pros and cons of a total imposed package?

A

+rapid change
+clear vision
-lack of consultation
-significant resistance to change

41
Q

what are the pros and cons of imposed piecemeal initiatives?

A

+staff have more time to adapt
+reduces resistance
-takes longer to implement

42
Q

what are the pros and cons of negotiated total packages?

A

+reduces level of resistance to change
+staff will be able to cope better
-can be constraints on the extent of change

43
Q

how may staff be resistant to change?

A
  • concerned with implications of change for themselves

- may fear the unknown

44
Q

what may happen if the organisational culture is not flexible and adaptable?

A

employees will become reluctant to adopt changes.

45
Q

why may shareholders become resistant?

A
  • fear that change will harm their profits
  • may need convincing as change may be costly
  • senior managers may need to reassure investors
46
Q

why may suppliers become resistant?

A
  • might increase costs
  • small suppliers may have no choice but to accept
  • communication is key
47
Q

what should managers do to support employees through change?

A
  • try to involve workers from beginning
  • clearly explain reasons for change
  • have a clear strategy, direction and vision for change.
48
Q

why was Lewin’s three step process created?

A
  • idea of re-enforcing change really mattered.

- ensuring that the change continued into the future.

49
Q

what are the three steps of Lewin’s three step process?

A
  • unfreeze (remove the belief that current way is working, create a ‘safe’ environment, provide clear rationale for change).
  • change (management support staff during change, communicate all changes).
  • freeze (re-establish stability, ensure work methods are the ‘norm’, staff given time to engrain change).
50
Q

how can leaders help with change?

A

must be seen to lead change

  • place new methods of working in and support these with relevant changes.
  • effectively communicating to all staff
  • identify resistant staff
  • convince employees survival of business depends on change.
51
Q

what are the pros of change?

A
  • businesses are dynamic in nature
  • the rate of change is accelerating
  • change is both an opportunity and a threat
52
Q

what are the cons of change management?

A
  • change is never easy to implement
  • sig. change may force a business to reconsider its mission and vision statements.
  • 65-70% of business change results in failure

business component three (7 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions