Brainscape's Knowledge GenomeTM

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


See full index

business - paper 3 > change > Flashcards

change Flashcards

1
Q

what is change ?

A

business change occurs when an organisation improves, restructures, or transforms a major part of its operations disrupting systems, people and processes

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

what is crucial to the success of any organisation ?

A

managing change effectively, change is usually met with a level of resistance

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

why do businesses need to adapt and change ?

A

the business environment is dynamic and ever-changing, need to adapt and change to stay relevant to consumer wants/needs

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

what is restructuring ? - internal change

A

where a business changes its internal organisational design which can result in additional layers being created with new management positions, can involve delayering - levels of management are removed

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

why does delayering cause high levels of resistance ?

A

employees may be worried about losing their job, workload can increase, can have more responsibility, can be harder to get promoted

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

what is new product development ? - internal change

A

can be when a business invests high amounts of capital into a new product, can result in new methods of working for the employees

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

why has new product development resulted in employees needing to work in a different way ?

A

car companies - the more advanced the car, the more skilled the employees need to be

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

what is major innovation developments ? - internal change

A

this can be where a business has to create new methods of working or operating which are in line with innovation, e.g. food delivery apps or 3D food printing

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

what are research & development activities ? - internal change

A

many businesses are now using AI to improve the capability of their products, including the automotive industry

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

why are individuals wary of AI and the changes it brings ?

A

missing information, people will have a lack of innovation

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

what is relocation of business (operations) ? - internal change

A

many businesses will move to different countries to reduce expenditure in areas such as manufacturing, assembly or call centre operations, e.g. apple moving production to india

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

challenges faced by companies by moving production from one location to another ?

A

the cost and time of training new staff, production may be more costly

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

what is a change in strategic direction of the business ? - internal change

A

e.g. netflix - change from DVD’s to streaming and creating their own content

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

what is change in ownership ? - internal change

A

e.g. the kraft cadbury hostile takeover in 2010, unwelcome change for many stakeholders

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

what is retrenchment ? - internal change

A

a strategy used when a business decides to scale-back its activities, e.g. pizza express

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

why may it be difficult to recruit new employees after scaling-back its business ?

A

potential employees may not trust them to have their job long-term

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

what is a merger/acquisition ? - internal change

A

companies join together on a friendly joint agreement, one company buys another - can be hostile, e.g. jd sports purchased footasylum in 2019 for £90m - later forced to sell at a loss

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

how the change in ownership following the re-sale could have a negative impact on stakeholders ?

A

fear of redundancy, fear of job security - affects work performance, fear of asset-strip - companies buy companies then sell

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

what is rebranding of the business ? - internal change

A

this occurs when the image of a business is changed to create a different identity for the brand to differentiate it from competitors, e.g. Greggs re-branding from low quality cheap food

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

what is growth in size of the business ? - internal change

A

organic growth - when a business achieves growth from existing activities rather than through acquisitions or mergers, e.g. poundland

21
Q

what are leadership and management changes ? - internal changes

A

e.g. apple changes in leadership from steve jobs to tim cook

22
Q

are changes driven by internal factors easier to manage ?

A

it depends; can be easier to control and manage, less conflict because the workers are familiar with each other, may be less resistance with effective communication

23
Q

how can a business attempt to prepare for potential challenges ?

A

by understanding the market/industry that it operates in, can conduct SWOT analysis to assess key opportunities and threats

24
Q

how to resolve poor financial performance ? e.g. lower profit margins

A

change to cheaper suppliers, delayering, decrease variable costs, increase prices - rebranding

25
Q

how to resolve employees attitudes towards the business ? e.g. demotivated workforce

A

enrichment, feedback, appraisals, financial and non-financial motivators

26
Q

how to resolve increases in labour turnover ? - resulting in loss of key employees

A

improve communication, more appraisals, improve recruitment processes, better working environment

27
Q

how to resolve product recalls ? - due to faulty products being released and sold to customers

A

improve technology, quality control, quality assurance, better quality checks, purchase better quality materials

28
Q

what is the external environment ?

A

all of the factors that are outside the direct influence and control of a business, but which impact upon their operations

29
Q

why may businesses be reluctant to change their operations ?

A

high initial costs, arrogance/complatency - dont believe its going to affect them, overstake customer loyalty, dont see it coming

30
Q

how can businesses reduce the impact of change and associated problems ?

A

by planning the implementation carefully, can help to minimise disruption

31
Q

what is the ability to manage change dependent on ?

A

the pace of the change, differs according to industries and the business situation

32
Q

what is rapid/unplanned change ? ‘the pace of change’

A

rapid change, occurs in response to a shock and is therefore often unstructured and under-resourced

e.g. covid 19
e.g. a volcanic eruption restricting access to supplies
firms should have contingency plans in place to help manage such events

33
Q

what is incremental/planned change ? ‘the pace of change’

A

internally managed and is structured and timetables, managers generate clear objectives for the change, create timescales and allocate resources to ensure changes are achieved

enables managers to anticipate the impact of changes and to minimise the adverse effects through consultation with employees, trade unions, suppliers and other stakeholders

34
Q

what are disruptive changes ? ‘the pace of change’

A

occurs when an industry undergoes radical change that modifies how all firms operate

e.g. impact of uber on taxi drivers

35
Q

what are the three factors that should be considered to help change to be effective ?

A

employee preparation

increased research & development (R&D) expenditure

additional capital investment

36
Q

why is employee preparation essential ? - dealing with and managing change

A

to gain the support of the workforce before any changes begin

37
Q

ways of employee preparation

A

company meetings, employee training, reassure/comfort them

38
Q

why is increased research & development (R&D) expenditure essential ? - dealing with and managing change

A

this will be important to introduce new products and processes when implementing change

39
Q

why is additional capital investment essential ? - dealing with and managing change

A

a business will struggle with change if they have outdated technology and equipment, this could be affected by the level of borrowing (gearing) that a business has

40
Q

what does implementing change relate to ?

A

the process of bringing about change and the strategies that a business can use to maximise the chances of success

41
Q

what model did john storey create ?

A

4-stage model, that leaders can use when implementing change

42
Q

according to storey, what can change be ?

A

imposed or negotiated

43
Q

what are the four approaches of storey ?

A

negotiated total package (NTP)

negotiated piecemeal initiatives (NPI)

imposed piecemeal initiatives (IPI)

imposed total package (ITP)

44
Q

what is negotiated total package (NTP) ? - john storey

A

managers and workers negotiate on how a major change will be implemented

based on an agreement, trade unions often involved
e.g. uniform change

45
Q

benefits of negotiated total package (NTP) ?

A

potentially the most effective method of implementing a process of change, can help to largely reduce resistance to change

46
Q

negatives of negotiated total package (NTP) ?

A

can lead to some conflict, affects all workers, very time consuming, can lead to employee resistance - due to comprimises

47
Q

what is negotiated piecemeal initiatives (NPI) ?

A

managers and workers consult and agree on changes as they become necessary

e.g. working hours

48
Q

benefits of negotiated piecemeal initiatives (NPI) ?

A

can be easier to implement than a total package of change

49
Q

negatives of negotiated piecemeal initiatives (NPI) ?

A

time consuming, quite disruptive - can slow down production

business - paper 3 (8 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2025 Bold Learning Solutions. Terms and Conditions