internal change Flashcards
what are the 7 sources of external change
PESTEL and competitive factors
what is a proactive and reactive approach to change
proactive - look ahead for change so you are better prepared to deal with it
reactive - wait for change to happen then respond
what are the 3 internal causes of change
- changes in the organisational size
- the impact of new owners/leaders
- poor business performance
what are 4 reasons a business might want to grow
- benefit from economies of scale
- more power of market so can negotioate better deals
- more status
- safer from takeovers
is internal growth or external growth slower?
internal growth
what organisational should a business adopt if it is growing
traditional hierachy
what is the diasadvantages of a growing business
- worse emploee relationships
- harder to keep control and coordination
- communication is harder
what is essential for effective growth
good communication
when does external growth occur
takeovers and mergers
what are the 3 types of integration
horizontal
verticle
conglomerate
what is congomerate integration
when 2 firms in different markets merge e.g cadburys and dulux
what is an expample of a successful merger
nippon glass and pilkington glass
what are 3 businesses that have sucessfully vertically integrated (they manufacture and sell the products)
zara and american apparel and morrisons
what percentage of takeovers fail?
50-70%
what are the 7 advantages of takeovers and mergers
- gain all their knowledge
- gain customers
- gain insight into a new market
- share ideas
- economies of scale
- eliminate competition
- vertical integration cuts costs as you don’t need suppliers or a distribution chain
what are disadvantages of takeovers and mergers
- organisations will have different values and cultures
- staff will need to be fired which is unmotivating
- pay wil have to be reorganised so its fair
- diseconomies of scale
- worse communication
- employees may see it as a rivalry not a tema
- 60% of mergers and takeovers destroy shareholder value
what is another way a firm could expand
go overseas
6 ways of financing groth
retained profits
- mortgages
- overdraft
- loan
- share issue
- sell assets
how can new owners and leaders lead to change
- new leaders often make change to make an impact
- new leaders have a different vision to old ones
- new leaders have different values, expiriences. leadrership styles
- new leaders are brought in to make change most the time
what are 4 leadership case studies
nokia - elop was brought in in 2011 because of a poor performance
ryanair - they had an autocratic leadership style but changed leader so it would become more democratic
tesco - in 2014 a new ceo was appointed who has changed the strategy to looking completely at the long term
barclays - jenkins was brought in in 2014 after thy were found misselling ppi to customers. Jenkins told employees they either cept the new corporate culture or change jobs
after a poor performance what changes might be made
- replacing staff
- restructuring
- new peocesses and systems
- mergers and takeovers
what do you constantly need to do to plans
review them
what is contingency planning
planning for events that might happen e.g terrorist attack or computer virus
what is scenario planning
managers imagine some scenarios that could happen and then plan them
which business does a lot of scenario planning
Shell
which business recovered well from the 9/11 attacks because of contingency planning
lehman brothers
what are 2 key influences on the change process
leadership and culture
what is the difference between leaders and managers
leaders look in to the future, have vision, are willing to break the mold ans re innovative. managers focus on the present, stick to the status quo and are implementers
what traits did stodgill (1974) say leaders have?
ambitions assertice decisive energetic persitant dominant dependable willing to take repsonsibility adaptabl to situations
what is a considerate style and an initiating structure
considerate style - they care about the well being of employees
initiating structure - tellsuboridnates what to do, focuses on defining and plannign work
what is autocratic and democratic leadership
autocratic - tell employees what to do
democratic - everyone has a say
what does the blake mouton grid show
5 leadership styles which either have concern for people or production or both
what is the contingency approach to leadership?
it recognises the right leadership style may consider:
- the nature of the leader
- the nature of the subordinates
- the nature of the task
who came up with transfromational and trtansactional leaders?
james burn (1978)
what are transformational and transactional leaders?
transformational - get subordinates to raise their standards
transactional - allows employees to reach their own goals if they contribute to the overall corporate objectives
who is a transoformational leader
steve jobs
according to french and raven what 5 types of power to leaders have
- legitamate power
- reward power
- expertise power
- coercive power
- referent power
what did handy say culture was
the way we do things around here
what did ouchi say culture was
the values, attitudes and beliefs of employees
what are the 5 types of cultures
entrpreneurial beurocratic customer focused conservative short run and long run
what is an entrepreneurial culture
highly valued if you try something even if it doesn’t work
what is a beurocratic culture
people stick to the rules and don’t make decisions for themselves
what is a conservative culture
the business doesnt take risks, they do extensive research before making a decision
what is a short run and long run culture
being focused on the short term or long term
how did deal and kennedy categorize culture
into feedback and risk involved
what 4 types of cultures did deal and kennedy come up with
tough guy matcho
work har play hard
process culture
bet the company culture
what id tough guy matcho culture
rapid feedback and rewards but high risk e.g the police
what is work hard play hard culture
rapid feedback and reward low risk environment
what is process culture
Slow feedback and reward but low risk
what is bet the company culture
slow feedback reward high risk
what 4 types of culture did handy come up with
role
task
person
power
what did hofstede research
116000 employees of a multinational located in 50 countries
what 5 factors did hofstede say determined a national culture
power distance uncertainty avoidance individualism v collectivism masculinity v feminity long term orientation
what did johnson and scholes say you can determine a culture by
stories rituals symbols organisational structire power structure control system
how can you change culture
- change what people value and see as important
- offer incentives to anyone who accepts change
- making employees feel they are part of the change
- warn employees of change
- provide resources to help people with change e.g training
who came up with programmed and non porgrammed decisions
simons
what is programmed and non porgrammed decisions
programmed - regular easy to make decisions
non - big decisions you must research e.g an investment
