UNIT 10 - MANAGING CHANGE - INTERNAL/EXTERNAL PRESSURES FOR CHANGE

Question 1

What is internal change

Answer 1

When Root cause of change comes from inside of a business

Question 2

Busienss change for a * of reasons

Answer 2

variety

Question 3

give examples of bs changing for a variety of reasons

2 marks

Answer 3

pure neccsity (must change in order to survive)

LT startegy ( leadership wants to grow company’s market share)

Question 4

give 5 examples of internal change

Answer 4

CHANGE IN LEADER/MANAGER (E.G taken over by a competitor)

CHANGES FROM EXPANSION

NEW OBJ SET BY MANAGMENT

NEW TECH BEING IMPLEMENTED

CHANGES TO ORGANISATIONAL STRUCTURE( e.g tall to flat)

Question 5

Why can a business plan for internal change

Answer 5

because internal changes are relativley easy for a busines to predict

Question 6

explain how a change in a new manager or leader can impact a bs

2 explanations

Answer 6

may lead to new org structure or culture

may move away from a product based business - to one offering services

Question 7

explain how changes from expansion can impact a bs

2 points, but go into depth

Answer 7

May lead to business entering new markets -can lead to adapting organisational structure to a regional one - as well as adapt it’s marketing mix

HR may need to recruit staff within/for new mkt (e.g more shops workers if qldi decides to locate to new zealand

Question 8

what is external change

Answer 8

root cause of change is from outside of the busienss

which causes a change inside of the business

Question 9

external change is related to

Answer 9

PESTLE

Question 10

GIVE 3 EXAMPLES OF EXTERNAL CHANGE

Answer 10

Econmic change
Legal change
Change in consumer tastes

Question 11

give example of external change of economic change

Answer 11

Interest rate increases

Question 12

explainteh effect of IR increases (External change)

Answer 12

finance departemtn may want to reduce gearing ratio (e.g pay off debtwith cash = liquidity issue)

so therfore look to use other SOF eg share issue to overcome any funding issues as a resuilt od reducing gearing ratio

Question 13

give example of external LEGAL CHANGE

Answer 13

BREXIT

Question 14

In the example of elgal change what 2 functions did BREXIT it significantly impact

Answer 14

Operations
HR

Question 15

EXPLAIN 2 ways HOW LEGAL CHANGE OF BREXIT AFFECTED THE OPERATIONS DEPARTMENT Q

Answer 15

change suppliers (to domestic/cheaper)
as imports more expensive due to tradr barriers

Move from JIT to JIC TO ENSURE SUPPLY CHANGE IS MORE SECURE - but how is it less secure due to brexit

Question 16

explain how legla change o fbrexit affect hr

Answer 16

follow employment law trends if they change in future as no longer related to EU

Question 17

what can cahnges in consumer tastes do to Demand

Answer 17

increase /decrease

Question 18

give 2 exzmple of consumer trends(external) changing businesses

Answer 18

consumer s mas concerned about treatment of supplies in developing countries increasing D for fairtrade products

Consumers more willing to buy high quality organic chocolate encouraging Cadbury to take over green and blacks

+ enviro concern means increased Demand for environmentally friendly goods and services

Question 19

an external factor is compeition policy , it may allow two bs to merge or takeover but on what condition

Answer 19

certain parts of the enlarged business are now sold

Question 20

give real life example of competition policy allowing two busiensses to merge together but having to sell of certain aprts of the large bs

2 points

Answer 20

morrisons took voer safeway 2004 sells 53 of the latters store - why is this impactful

to provide fairer comp enviro for comp and consumers

Question 21

competition policy prevents

Answer 21

bs being too dominant in certain mkts/regional areas at teh expense of other bs and consumers

Question 22

economic climate EC can present

Answer 22

opps and threats

Question 23

ina recession int erms of external change how would this affect a business

2 points

Answer 23

bs may choose to restructure to survive if demand is failing

but holds onto parts of bs that can help it survive

Question 24

how can a recessions EC-EXTERNAL CHANGE present a growth opportuinty for certain bs

Answer 24

can present growth ops for bs providing goods and services that are inferior /countercylcial

e.g poundland

Question 25

what can a growing economy lead to in terms of business confidencve as well as demand

Answer 25

increased output and expansion e. New branches or factories