Types of Change

Question 1

When can change occur?

Answer 1

When a business changes it’s:

• Size
• Structure
• Strategy

Question 2

What are the four types of change?

Answer 2

External, internal, disruptive, incremental.

Question 3

What is internal change?

Answer 3

Change that happens from within the business. This could be a change of leadership or a realignment of values.

Question 4

What is external change?

Answer 4

Change that happens from outside of the business and, therefore, outside of the business’s control.

Question 5

What is incremental change?

Answer 5

Change that is implemented over a period of time with small, regular changes being made to achieve ongoing improvements. This type of change can be easier to manage.

Question 6

What is disruptive change?

Answer 6

Change that is rapid and unexpected. It has a dramatic effect on the way in which an industry or business operates.

Question 7

What does PESTLE stand for?

Answer 7

Political.
Economic.
Social.
Technological.
Legal.
Environmental.

Question 8

What are external environment forces?

Answer 8

• All of the factors outside the control of the business.
• It creates both opportunities (eg - technological advancements) and threats (eg - rising interest rates).

Question 9

What is the political enviroment?

Answer 9

The government actions that impact the strategic and functional decisions made by a business.

Question 10

What are 4 examples of the economic environment?

Answer 10

• Inflation.
• Exchange rates.
• Taxation.
• Government spending.

Question 11

What is legalisation?

Answer 11

Legalisation involves creating and enacting laws in order to protect individuals, businesses and society as a whole.

Eg - minimum wage.

Question 12

How can change be managed?

Answer 12

• Change requires project management (delivering the required change within a predetermined time and finance).
• The people within a business are crucial to implementing and managing change.

Question 13

What techniques can be used to manage change?

Answer 13

• Identifying a project champion (the person responsible for driving a project forward and gaining commitment).
• Establishing a project group.
• Gaining commitment from employees.

Question 14

How does Lewin’s force field analysis link to change?

Answer 14

Lewin’s model of change attempts of identify the balance of power between the forces, as well as people for and those against change.