LO4 - ASSESS THE IMPACT OF CHANGE ON BUSINESSES

Question 1

what are the 7 possible impacts of change on businesses

Answer 1

• product life cycle
• research and development
• training
• recruitment and selection
• cost and profit implications
• new opportunities
• different physical resource needs

Question 2

explain the impact on the product life cycle

Answer 2

products at the end of their product lifecycle may be withdrawn earlier due to a change in the business plans

Question 3

explain the impact on research on development

Answer 3

a budget will need to be set aside for research and development , prototypes will need to be produced to be tested so that they can be improved etc.

Question 4

explain the impact on training

Answer 4

training is essential to empower employees , however training will come with a cost , if budgets are tight then management might explore the impact on training key personnel only who then pass on the knowledge to team members

Question 5

explain the impact on recruitment and selection

Answer 5

if the skills gap compared to the workforce is too big of a difference then this may be an essential element for the business.

Question 6

explain the impact on cost and profit implications

Answer 6

as costs increase for the business, profits will decrease, profits are a key performance indicator for the business so costs must be managed

Question 7

explain the impact on new opportunities

Answer 7

the change will give businesses new opportunities

Question 8

explain the impact on different physical resource needs

Answer 8

change can sometimes require new resource needs such as premises, machinery etc in order for the change to go-ahead

Question 9

what are possible impacts on owners

Answer 9

owners can have a risk of;

• having a reduced return on investment in the short term or long run
• a fall in share prices if investors develop uncertainty
• may have to become more careful with their financial aspects
• may have to sacrifice their work-life balance

Question 10

what are the possible impacts on managers?

Answer 10

managers can have the risk of;

• convincing their teams that there is a need for change
• if employees are affected by the change e.g. being put at risk of becoming redundant this can result in them calling in sick etc which will mean everyday tasks cannot be completed for the manager’s team

Question 11

what are the possible impacts on employees?

Answer 11

employees can have the risk of;

• financial impact such as pay, redundancies and loss of fringe benefits
• loss of status due to restructuring
• retraining can be stressful for employees
• working conditions can change e.g. can result in a change in the work-life balance

Question 12

what are the possible impacts on customers?

Answer 12

customers can have the risk of;

• having a better customer service
• having a negative impact such as a business writing off a certain product

Question 13

what are the possible impacts on local residents?

Answer 13

local residents can have the risk of;
-local residents living near may have the risk of noise pollution, congestion - this can result in protests/involvement in the local press

Question 14

what are the possible impacts on suppliers?

Answer 14

suppliers can have the risk of;

• more/less orders for the business
• revised contract terms e.g. how long a payment should take