U4 4A business change

Question 1

concept of business change

Answer 1

• refers to transitioning individual employees, working teams, functions or whole business
• to new state of operation.
• business are constantly evolving and adapting to improve performance

Question 2

examples of business change

Answer 2

• changing products to better suit customer needs
• moving production overseas to take advantage of cheaper labor rates
• new manager coming in / changing management style

Question 3

sole trader example

Answer 3

recent change : covid 19
response : social distancing tables / takeaway only

recent change: technological changes
response : website with booking option / contactless payment

recent change: new competitor
response : reduce prices / set up loyalty scheme

Question 4

what is a proactive approaches to change

Answer 4

• proactive approach to change occurs when business acts in advance to avoid future problem
• or takes an opportunity to gain competitive advantage

e.g investing in new technology / identifying market gap and filling it

Question 5

what is a reactive approach to change

Answer 5

• reactive approach to change occurs when business change in response to situation or crises

e.g business experience major decline in area of kpi data such as profit decline

Question 6

similarities between reactive and proactive

Answer 6

similarities
- both approaches are utilized by a manager or business to implement change

• both approaches require support of manager
• who must utilize management skills if change is to be implemented successfully

Question 7

differences between reactive and proactive

Answer 7

• proactive change occurs when business takes advantage of opportunity / avoids future problems
• whereas reactive change occurs in response to situation or crises essentially forcing business to change
• proactive is more planned and coordinated with fewer pressures acting on business throughout change
• whereas reactive change is more spontaneous, urgent and pressured