Managing Change Flashcards
how can a change in leadership/management lead to further changes
if the director of a company leaves or is replaced, the new director may have different ideas about how the business should be run, which could lead to changes in the organisation’s culture. E.g. Satya Nadella replaced Steve Ballmer at Microsoft
how could strong performances lead to a change
there could be the decision to expand the business, in order to take advantage of increased profits
how could weak performances lead to a change
it may lead to changes such as retrenchment
how could changes to the staff lead to a change
it could mean that the business no longer has the required skills and further changes need to be made.
how can business growth lead to changes
a business expanding into international markets may have to adapt its product range to match the needs of customers in other countries
how can the type of business influence change
if a business is innovative, it may keep coming up with better methods of doing things, so the business may continually change to use these new methods
how can the availability of new technology cause change
the business might change their production methods if new technology means production can be faster or cheaper.
what can new production methods lead to
shorter product life cycle
how can a change in consumer tastes lead to change
if consumer tastes change, the business might need to alter its product range to fit in with changing demand
what happens if the economy slows
people will have less disposable income, so product prices may need to be reduced
how can changes in the law lead to change
government restrictions on pollution may force businesses to alter their methods of production or change to a local supplier
how can changes in ethical views and social awareness lead to change
it may result in companies purchasing ethically sourced products from fair trade suppliers
how can changes in competition lead to a change
businesses could lose market share for particular products, and thus may need to act to regain their market share or prevent further losses
how can changes be beneficial
they can allow a business to take advantage of new, effective ideas, possibly saving time and money in the process
how may businesses be forced to change
the rate at which technology advances is speeding up, so change becomes more and more essential. For example, in the car manufacturing industry, it is necessary for businesses to be constantly developing up-to-date technology for their cars
why is incremental change gradual
it is usually the result of a strategic plan being put in place and often attempts to minimise disruption.
what do managers decide when it comes to change
a timescale for the necessary changes and then timetable strategies for achieving them
what speed is a disruptive change
it is sudden
what does disruptive change do
it forces firms to suddenly do things in a different way than usually. They may have to close or sell off subsidiary companies, spend heavily on promotions to raise customer confidence or totally restructure the way the firm’s organised.
what model is used to explain the change
lewin’s force field analysis
what is changing the organisational structure of a business known as
restructuring
why is beneficial to be a business that can restructure quickly and efficiently
they can adapt their structure in order to keep up with changes in the external environment or to implement a new strategy
what is the main reason for restructuring
to maximise the efficiency of decision making, communication and division of tasks in the business’s current situation.
what can restructuring do
it can reduce costs, which can make the business more competitive