DOT POINT 2 - APPROACHES TO CHANGE

Question 1

What is proactive change?

Answer 1

Proactive change refers to a business that is foreseeing changes in the business environments and looks to implement their own changes in order to maintain/gain a competitive advantage.
- Change before change is forced upon the business.
- Example: Kogan bought stuff and sold it - ready.

Question 2

What is reactive change?

Answer 2

Reactive change is where the business is impacted by pressures from the business environments and then responds as a result.
- Forced to change business have no choice.
- Example: TOYS R U people buying toys from big companies like Kmart, where they can also buy other stuff at the same time, making it easier, therefore they had to adapt.