Driving forces Flashcards
Driving forces for change
Are those that initiate or support the business towards change
list the driving forces
managers
employees
competitors
legislation
pursuit of profit
reduction of cost
tech
globalisation
innovation
societal attitudes
Managers
the ppl with specific areas of responsibility within a business (e.g operations) and who are accountable for ensuring the business achieves its objectives
How/why can it/ MANAGERS help drive change?
Managers will drive for challenges that lead to more effeicient and effective outcomes cuz their main role if to implement decions that increase profits for owners and improve the performance of the business
Employees
employees are the ppl working for a business that expects to be paid fairly , trained properly and treated ethically in return for their efforts
How/why can it/ EMPLOYEES help drive change?
Employees may support a change cuz it improves their condition or cuz they believe the change can be good for the business and improve their future job security.
Alternatively, employees may drive a business to change because they are unhappy with their current conditions or certain business practices.
Competitors
are rival businesses in the same market that are competing for market share
How/why can it/ COMPETITORS help drive change?
-The competitors nature of the business can initiate change in a business as they compete for customers
-competitors can drive changes in business policy , pricing strategy, marketing, campaigns, product features, employee pay and conditions and many other aspects of business.
Legislation
laws can be brought in that can force business to implement change to ensure they comply with the changes
How/why can it/ LEGISLATION help drive change?
-Failure to comply with changes in legislation can result in legal consequences for the business.
-in recent times there have been changes to the National Reaail law.
PURSUIT OF PROFIT (don’t think of this as reducing costs, think of it as increasing revenues)
business will often make changes with the aims to improves profits
How/why can it/ PURSUIT OF PROFIT help drive change?
-Business can improve profits by increasing revenue revenues or by reducing their costs (or achiving cost)
-implementing changes that will improve profits can also be a greate support for the change.
Reduction of cost
business often look to implement changes to reduces their cost
Changes may be intiated as a result of RISING COST in the business or simply to reduce costs further
How/why can it/ REDUCTION OF COST help drive change?
Businesses can implement a wide range of techniques to reduce their costs such as wastage, purchasing cheaper materials, manufacturing overseas, ad restructuring.
Globalaisation
the process where economic bounderies are removed and business begin operating on an international scale
