Cause and Effect on Change (3.6.1) Flashcards
Businesses operate in a business environment that constantly does what?
Businesses operate in a continuously changing business environment
Is change good or bad for a business?
Change is significant for a business and there have been many examples of business failure due to a lack of change. e.g. ToysRus, Blockbuster etc..
What are the two different types of change in a business?
Internal and External Change
What are examples of internal change?
-Changes in Size- New premises
-Transformational Leadership- New strategic direction and vision for business
-New ownership-Can bring significant change to aim + objective of the business
-Poor performance- Could cause changes to leadership team
-Business restructuring- Expansion or contraction of business, entering new market
What are examples of external change?
-Changes in the market- New competitor
-PESTLE changes
What is the Advantage and Disadvantage of competitiveness in a business?
Advantage:
-Better quality products leading to increased loyalty
Disadvantage:
-New branding damaging customer reputation
What is the Advantage and Disadvantage of productivity in a business?
Advantage:
-Investment in technology improves efficiency
Disadvantage:
-New product lines increase amount of waste
What is the Advantage and Disadvantage of Stakeholders in a business?
Advantage:
-New management involves staff in decision-making
Disadvantage:
-New pricing strategy alienates loyal customers
What’s a good real life example of a business that has changed and adapted to sustain market leadership?
Netflix
What does success of change depend on?
-Organizational culture
-Size of the organization
-Time and/or speed of change
-Managing resistance to change
What is the Trade off of productivity vs Morale?
Hammering down on productivity can damage morale and cause staff to take days off leave
What can change have significant effects on in the business?
-Competitiveness
-Productivity
-Financial Performance
-Stakeholders
