DOT POINT 1 CONCEPT OF BUSINESS CHANGE Flashcards
What is business change?
Business change is the adoption of new ideas or behaviours within a business, as a result of pressure from the internal and external business environments.
What are internal pressures?
Internal pressures are pressure from employees (work conditions).
What is external pressures?
External pressures are customer demands/satisfaction (eco-friendly).
What is racial change?
Racial change is when there are major alterations to a business.
- Often initiated by critical events, such as a dramatic drop in finance performance, a merger/takeover, or competitor disrupting the industry.
- Example: Uber on the taxi industry.
What is incremental change?
Incremental change is when the business remains relatively the same however its working towards improving some aspects of its function.
- Less traumatic than radical change, and is part of its natural development.
Might include new systems, new products, new policies.
- Generally proactive.
- Leads to continuous improvement = competitive advantage.
- Example: Business culture - small changes - feedback.
What is failure to adapt?
Failure to adapt is a business not having the ability to adapt to seasonal trends/what is popular and therefore going out of business or no longer having revenue coming in.
- Streaming services, Foxtel (adapted into Binge and Kayo).
- Smart phones, Iphones and cameras.
What is unplanned change?
Unplanned change is when is occurs randomly.
- Sometimes disruptive.
- Management must adapt quickly to unplanned changes and minimise any negative effects they may have on the business.
- Example: COVID 19, businesses were closed and had to adapt, cafes - takeaway.
