Driving forces

Question 1

driving forces

Answer 1

those that initiate or support change. These forces push the business towards a new desired state.

Question 2

what are the driving forces (11)

Answer 2

• owners
• managers
• employees
• competitors
• legislation
• pursuit of profits
• reduction of costs
• globalisation
• technology
• innovation
• societal attitudes

Question 3

owners

Answer 3

they look for a return on investment. as they peruse profits, they can initiate changes within the business.
They have a clear vision on what they want their business to look like, make changes that reflect this vision.
- active owners can be a significant support for change, ensuring that resources are available.
- new owners coming into the business may drive new changes as they may have new ideas on the direction

Question 4

managers

Answer 4

They initiate changes as they work towards the vision of the business.
Management often look at performance indicators and use these to develop strategies that will aim to improve performance.
strong leaders can help support business changes by inspiring others about the benefits of change + supporting employees

Question 5

competitors

Answer 5

the rival business that are competing for market share.
the competitive nature of business can initiate changes in the business as they compete for customers.

Question 6

legislation

Answer 6

laws can be brought in that can force businesses to implement changes to ensure they comply with the changes.
failure to comply with changes in legislation can result in legal consequences for the business.

Question 7

pursuit of profits

Answer 7

businesses will often make changes with the aim of improving profits.
businesses can improve profits by increasing revenues or by reducing their costs.
if net profit figures are not at the desired level it can initiate changes within the business.

Question 8

reduction of costs

Answer 8

costs come from all areas of the business.
businesses often look to implement changes in order to reduce their costs.
Reducing costs may drive a business to make changes that will result in increased profitability or market share.

Question 9

globalisations

Answer 9

the process where economic boundaries are removed and businesses begin operating on an international scale.
can drive change in business so they remain competitive
Globalisation has also initiated changes in businesses that have resulted in reduced cost of production.

Question 10

technology

Answer 10

can impact all areas so they remain business.
businesses need to implement tech to gain or maintain a competitive advantage.
Although expensive to implement technological changes, failing to adapt to these changes will leave a business unable to compete in today’s market. Technology has changed the way industries operate, as well as the way that consumers interact with businesses

Question 11

innovations

Answer 11

adopting something new or improving on what already exists.
innovation can help businesses create new products or services.
can help businesses and reduce costs by improving processes and automating tasks.

Question 12

societal attitudes

Answer 12

the values, ideas, beliefs and expectations of members in society.
as societal attitudes change so do consumer preferences. Businesses need to adapt to maintain relevance to their customer base.
- don’t say customers

Question 13

employees

Answer 13

Employees not only work for remuneration but are also in a position to see areas in the business where change is needed. Employees can also develop new ideas and drive change as they believe in the change.

Question 14

globalisation contemp example

Answer 14

Darrell Lea treats taking on the world
- darrel lea is expanding their market to overseas

Question 15

employees example

Answer 15

Employees working outdoors at Googleplex headquarters main office in Mountain View, California

Question 16

competitors example

Answer 16

Established brands are trying to catch up to Tesla with the introduction of new models.

Question 17

legislation

Answer 17

Legislation is a force for change — e.g. banning single-use plastics such as straws

Question 18

innovation

Answer 18

The introduction of contactless payment by debit and credit cards (e.g. payWave), and through mobile phones, has led to a significant increase in the total spent using these methods.

Question 19

technology

Answer 19

IKEA are using augmented reality to allow customers to see how products will look in their own home

Question 20

societal attitudes

Answer 20

There is growing pressure for businesses to implement procedures to preserve and protect the natural environment. Australian supermarket chains phased out the use of single-use plastic bags before legislation, as a result of societal attitudes.