Driving forces

Question 1

Define driving forces

Answer 1

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

Question 2

Managers

Answer 2

The personal ‘‘drive’’ that a manager provides to initiate and maintain the momentum of the change. They will also share their vision and try and get others inspired to change by being role models.

Question 3

Employees

Answer 3

If employees support and are happy with the change they can be a great force for “driving’’ change through the rest of the business. They are able to influence others and through empowerment, or employee centred management styles and skills, can have an active role in pursuing change.

Question 4

Competitors

Answer 4

A business needs to respond to the action of competitors or risk being left out of the industry. Competition can drive a business to implement changes to gain a sustainable competitive advantage.

Question 5

Legislation

Answer 5

Businesses need to respond to changes to laws which can force a business to implement change. Legislation changes can be at federal, state or local level.

Question 6

Pursuit of profit

Answer 6

One of the main objectives in any business is to increase profits, so businesses that are looking to increase profits may implement changes such as changes to their marketing campaigns, expansions in the business or develop new product lines to maximise profits made.

Question 7

Reduction of costs

Answer 7

A business that has high costs can initiate change. Costs eat into profit margins so reducing costs can help a business become significantly more profitable.

Question 8

Globalisation

Answer 8

Globalisation is the process where economic boundaries are removed and businesses begin operating on a international scale. Globalisation increases global competition, but also allows businesses to take advantage of global markets.

Question 9

Technology

Answer 9

Technology can impact all parts of a business. Businesses may need to implement technology to remain competitive. Examples of changes businesses may need to adapt to is changes to phones and computers and also manufacturing technology advancements.

Question 10

Innovation

Answer 10

Is the introduction of new products, modifying existing ones, adapting business methods or business activities and is a major source of competitive advantage for business and therefore is a strong driving force for change.

Question 11

Societal attitudes

Answer 11

society’s attitudes are constantly changing. Businesses that fail to keep up with these attitudes risk falling behind or receiving criticism for doing wrong thing because society’s attitudes have changed such as corporate social responsibility practices.

Question 12

Outline how globalisation can be a driving force for change.

Answer 12

Globalisation can be a driving force for change to respond to overseas competitors threatening local market share, or taking advantage of lower manufacturing costs overseas to gain a competitive advantage, or seeking exporting opportunities to develop greater sales.