Change management Flashcards
Why do businesses need to adapt to change?
Businesses adapt to manage change to ensure their survival and growth. Adapting allows them to respond effectively to market trends, competition and effectively meet customer needs.
What are internal factors that cause change?
Growth or decline in businesses
Poor leadership/management
New management
Organisational restructuring
Staff turnover
Mergers/takeovers
What are external factors that cause change?
Competition
Technology advancements
Change in demand
Failure of a market
Changes in legislation
Inflation
Recession
What is a stakeholder?
Stakeholders are individuals or groups who have an interest in a company.
How does change in a company impact stakeholders?
Change in a company can impact stakeholders by affecting their interests or expectations, such as job security for employees or satisfaction for customers. It can also affect them financially for owners.
List some stakeholders affected by change in a company.
Customers
Owners
Managers
Employees
Regulators
The Government
Financial Institutions
How are customers impacted by change in a company?
Changes in products or services can affect customer satisfaction. Such as change in price or quality which might impact brand loyalty.
How are owners impacted by change in a company?
Financial changes can influence their earnings. Strategic decisions may affect their level of involvement.
How could employees be impacted by change in a company?
Their job roles or work environment might be affected. Changes can also influence job security and morale.
How could financial institutions impacted by change in a company?
Lending needs may rise or fall depending on business shifts. Changes can also influence repayment risks.
How could the government impacted by change in a company?
The government might get more or less tax money depending on the company. Changes in jobs can affect the economy and increase support for unemployed workers.
