driving forces for change Flashcards
define driving forces for change.
factors that support change. e.g. sustainability, quality resources.
what are the 10 driving forces for change and why are they a driving force?
- innovation
- societal attitudes
- owners and managers - want to improve
- employees
- competitors
- legislation
- pursuit of profit
- reduction of costs
- globalisation
- technology
how are owners a driving force in a business?
owners are interested in the success fo the business from a financial and a personal reputation position. they are a driving force because they want to improve their return on investment (ROI).
if it was shareholders they will drive change to achieve capital gains/dividends
if it was owners of social enterprise they will drive change to make profits but also to benefit society
the government as owners of the government business enterprise will drive change for the betterment of society as well as profits (e.g. auspost)
how are managers a driving force in a business?
managers are interested in the success of the business from a job security, financial and a personal reputational position.
How they drive change:
- job security: initiating change in an area may be apart of the managers employment contract, they know if they don’t achieve it their employment may be at risk
- financial benefit: may be financial incentive in their contract if they achieve success in change
- personal reputation: successful change can build personal status, they could put it on their resume or future positions.
how are employees a driving force for change in a business?
employees are the people working for the business and they expect to be paid fairly, trained properly and treated ethically in return for their efforts.
How they drive change:
- improvements in processes, product features, safety: if they are experiencing issues, they want to solve it creating better outcomes for customers
- if they are seeking better terms and conditions of employment
- spark innovation: when employees have ideas on areas of the business that can be improved
- those that are onboard with change can drive the business towards the successful implementation of the change: the employees may be excited and will work hard to make the change successful
how are competitors a driving force for change in a business?
competitors are rival businesses that are competing for market share.
how they drive change:
- competitive nature: it acts as a driving force as businesses compete for customers
- competitors drive changes in: business policy, pricing strategies, marketing campaigns, product features, employee pay and conditions, etc.
how are legislations a driving force for change in a business?
legislations are the laws and legal regulations businesses must follow.
how they drive change:
- businesses may be forced to change as new legislations may be introduced and its current operations breach the legislation.
e.g. during COVID-19 victorian businesses had to follow social distancing measures, have worker vaccination requirements, managing covid cases in the workplace
how can pursuit of profit be a driving force for change in a business?
how they drive change:
- businesses will make changes to improve profits
- if net profit figures are not at the desired level it can initiate change
how can reduction of costs be a driving force for change in a business?
how they drive change?
- the drive to improve profit margin can drive change in reducing costs (e.g. cutting employees, costs)
- another driving force is the rise in costs
businesses can reduce costs by reducing wastage, purchasing cheaper materials, manufacturing overseas, restructuring
how can globalisation be a driving force for change in a business?
globalisation is when businesses expand overseas and start operating on an international scale.
how they drive change:
- globalisation increases global competition
- globalisation allows Australian businesses to make use of overseas resources.
how can technology be a driving force for change in a business?
technology is the application of scientific knowledge to invent new devices, processes, tools, or systems in a business.
how to drive change?
- if it improves processes, communications, products, data analysis and efficiency
- they may need to implement technology to gain or maintain a competitive advantage
how can innovation be a driving force for change in a business?
innovation is the adoption of something new or improving something.
how they are a driving force:
- help business to create new products or services
- help business reduce costs by improving processes and automating tasks
how can societal attitudes be a driving force for change in a business?
societal attitudes are the values, beliefs, ideaas and expectations of members in society.
how they drive change:
- attitudes can change over time so businesses have to adapt to maintain relevance to customers
