causes of change Flashcards
1
Q
changes in organisational size as a cause of change
A
- organic/inorganic
- downsizing
- international expansion
2
Q
disadvantages of changing the organisational size
A
- maintaining the company culture
- increased labour costs by hiring new staff
- training of new staff
- impact on communication
- demotivated staff during expansion
3
Q
poor business performance as a cause of change
A
- poor sales
- low profits
- low productivity
- slow expansion
4
Q
disadvantages of poor business performance
A
- will need new objectives and a new direction
- need new strategies to compete (Ansoff’s matrix)
- the business will need to see whats necessary to improve performance e.g. delaying/redundancies
5
Q
new ownership as a cause of change
A
- change of ownership
- takeovers/mergers
6
Q
disadvantages of new ownership
A
- increased number of shareholders who have a say in the running of the business
- new legal responsibilities
- redundancies as there may be two marketing managers for example
- clash of cultures
- issues of communication between 2 businesses as they merge
7
Q
the market and other external factors (pestle) and drawbacks
A
- Changes from any of the different areas
drawbacks:
- Increasing their research and development budget
- Develop their product portfolio
- Change objectives
- Adjust working practices to adhere to new rules
8
Q
transformational leadership and drawbacks
A
New CEO, Chairman, Finance Director
drawbacks:
- A new business culture which challenges managers to develop new ways of thinking
- Possible resistance to change
