U4: AOS1 (Forces for Change)

Question 1

How are Managers driving forces for change?

Answer 1

• Initiate/maintain momentum of change through leadership

- Share vision and inspire others to be role models

Question 2

How are Employees driving forces for change?

Answer 2

• Influence other employees to embrace change

- Main pursuers/upholders of change through work

Question 3

How are Competitors driving forces for change?

Answer 3

• Forces business to improve due to competitive edge

- Introduces new practices which may be adopted by business

Question 4

How is Legislation a driving force for change?

Answer 4

• Enforces that the business adhere to good practices

- Outlines framework for which business can operate

Question 5

How is Pursuit of Profit a driving force for change?

Answer 5

• Encourages better business performance

- Encourages implementation of better practices

Question 6

How is Reduction of Costs a driving force for change?

Answer 6

• Encourages higher efficiency through increase of sales and reduction of cost
• Implements improvements to business

Question 7

How are Managers a restraining force in businesses?

Answer 7

• If change threatens personal beliefs or position, will be influential is restraining change
• Can influence employee opinion, not prioritise tasks

Question 8

How are Employees a restraining force in businesses?

Answer 8

• Employees may fear the unknown change, fear for job security, fail to see logic/reason in change.

Question 9

How is Time a restraining force in businesses?

Answer 9

• Implementing decisions/change takes time, which may hinder performance against competitors

Question 10

How is Organisational Inertia a restraining force in businesses?

Answer 10

• Business may be unable to see need for change due to prior success, and might not implement it (reactive, not proactive decisions)

Question 11

How is Legislation a restraining force in businesses?

Answer 11

• Laws limit the practices which a business can implement to achieve change

Question 12

How are Financial Considerations a restraining force in businesses?

Answer 12

• Business needs money to make change. No cash = no change

Question 13

How is Globalisation a driving force for change?

Answer 13

• Exposure to global competitors = competition increasing performance
• Access to global market = increased sales
• Global manufacturing options = reduce costs, different practices

Question 14

How is Technology a driving force for change?

Answer 14

• Manufacturing technology = new ways to make products (less costs, innovation)
• Internet + communications = better access, new methods
• Tech helps process be more efficient/effective

Question 15

How is Innovation a driving force for change?

Answer 15

• Major source of competitive advantage = drives change

Question 16

How are Societal Attitudes a driving force for change?

Answer 16

• Forced to respond with appeasement to societal attitudes (eg. Women in work, ageing employees, migrants, ethical practices)

Question 17

1) What is Porter’s ‘Lower Cost’ strategy?
2) Examples of how it might be implemented.
3) How is this effective?

Answer 17

1) Gaining a competitive edge by becoming the lowest cost producer in an industry.

2)
- Bulk buying
- Quicker and more efficient tech
- Lean management
- Offshoring/cheap labour

3) Appeals to cost conscious people

Question 18

1) 2 Advantages of ‘Lower Cost’ strategy

2) 2 Disadvantages of ‘Lower Cost’ strategy

Answer 18

1)

• Strong competitive advantage
• Ability to generate high profit

2)

• Lower customer loyalty (only care for price)
• May result in low quality/generic product

Question 19

1) What is Porter’s ‘differentiation’ strategy?
2) Examples how it might be implemented.
3) How is it effective?

Answer 19

1) Gaining a competitive edge by making unique products which are more creative/innovative than competitors.

2)
- Innovate products
- New features (durability, accessibility)
- Unique marketing

3) Appeals to loyal customers

Question 20

1) 2 Advantages of ‘Differentiation’ strategy

2) 2 Disadvantages of ‘Differentiation’ strategy

Answer 20

1)

• Strong competitive advantage for loyal customers
• Ability to change price (as price is not focus)

2)

• Repels ‘cost conscious’ customers
• Unique features can be copied by competitors