Theme 3.6.1 Managing Change

Question 1

change management

Answer 1

Involves the process that ensures a business responds to the environment in which it operates

Question 2

Two approaches to change?

Answer 2

• Step change

- Incremental change

Question 3

What is step change (approach to change) and an example of one?

Answer 3

Significant and occurs rapidly e.g. takeover, change in leadership, Royal Mail bringing in use of technology

Question 4

What is incremental change (approach to change) and an example?

Answer 4

Change occurs over a period of time in incremental, small stages e.g. the Kaizen approach

Question 5

Advantage of incremental change?

Answer 5

• leads to a gain in competitive advantage (sometimes first mover advantage)

Question 6

Disadvantages of incremental change?

Answer 6

• sometimes too slow

Question 7

Disadvantages of step change?

Answer 7

• not enough time to consult staff

Question 8

Advantages of step change?

Answer 8

• allows businesses to react quickly, especially if in a dynamic market

Question 9

Causes of change can be….?

Answer 9

Internal (within control of the business) or external (outside the control of the business)

Question 10

Internal causes of change

Answer 10

• productivity/ inefficient operations
• poor industrial relations -> industrial action
• change in leadership
• change in structure required -> (layering or delayering)
• change in the nature product/ service itself e.g. Royal Mail delivering letters
• change in corporate objective (something becoming more important)