managing change Flashcards
internal causes of a change for a business
change in size of the business
new ownership
poor business performance
transformational leadership
change in size of business
increase in size of business e.g can expand abroad
therfore, increase in number of workers
therfore, reduced production time
therefore, reach economies of scale
therfore, reduced unit costs
decrease in business size
econimies of scale may be lost
cause competivess to reduce
prices increase
change in ownership
firm may change from being sole trader to partnership
or to a private limited company
owner may retire and sell or gift business to new owners
change in vision of new owner may result in changes in firms objectives and aims, staffing structure, production, policies and culture etc
any changes made by new owner may affect frims stakeholders
how many any changes of new owner affect firms stakeholders
customers might find their are changes in quality of customer service offered by firm
local residents may experience changes in level of pollution or noise or produced by factory
ways to resist the issues of change
making stakeholders aware of changes
aware of any changes in organisation, its goals or objectives as a result of new ownership
help make stakeholders feel valued, supported
econimes of scale may be reached as new owner may cause firm to grow
increasing investment in machinery
poor business performance
e.g has lower sales and profits
business growing slower then expected
may reduce compettiveness
lower sales may mean higher prices charged
staff may be made redundant
how may mangers make chnages to poorly perfoming firms
recuritng new seniour managers to direct frim in more successful direction
changes need to be quick and extensive
reducing costs
improving product quality
increasing investment into firm
transformational eader affecting business
identify a need and have a vision for change
motivate employees to make changes
often recurited when frim have a period of poor performance
what is a transformational leader
owner or manager who makes large, innovative changes to a firm
external envioronment can create a lot of change in business
Political-changes in government policy e.g. change on single use plastic carriers so shops change
Economic-country enters recession, disposable income for buyers reduced so then prices will have to be reduced
Social-change in social trends means business needs to change its product range to fit change in demand
Technological-new technology may create faster production, lead to increased productivity, therefore, reduced prices
Legal-changes in legislation
Environmental-alter production process to reduce emissions due to increased concern for environment
market-
what is change management
processes and procedures performed by managers
plan and prepare changes
carry out the changes
assess the possible effects of the changes on business and stakeholders
scenario planning
involves planning for events that might occur
where business considers specific events that may happen in future and plan how they would operate if any of the events occur
also involves how to reduce the effects of any negative changes that events might cause
e.g. a natural disaster
dis of scenario planning
time consuming
expensive
requires specialist training meaning firm may have to hire an expert with the knowledge
may make risk assessment instead beforehand
