what is change
-constant feature of business activity
-key issues are if it is foreseen and can be planned for
what is step/ disruptive change
-dramatic change
-significant alteration
-may see resistance
-often required after strategic drift
what is incremental change
-many small changes as a business develops
-response to subtle changes in an external environment
-little resistance
what are internal causes of change
factors within the control of the business
list the internal causes of change
-organisation size + growth
-poor business performance
-new ownership
-transformational leadership
what is transformational leadership
the ability to implement a vision through radical policies and strategies to bring about a positive change
what are external causes of change
factors outside of the control of the business
list the causes of external change
-political
-economic
-technology
-legal
-environmental
PESTLE
-competitors actions
what are the actions required for change
-market research
-addressing motivation issues
-cut costs
-recruiting new skilled employees
-new product development
-attention to product design
-building a strong culture
what is the value of change
change can benefit a business, especially in a constantly changing external environment
how may change affect a business
-affect competitiveness
-affect productivity
-affect financial performance
-affect stakeholders
what are the benefits of change
-sustain competitive advantage
-align strategy w customer needs
-take advantage of new technology
-stakeholders gain from improved productivity
-change in structure - efficiency of communication
-being perceived as market leader rather than follower
what are the cons of change
-some markets may change very little
-tradition/ culture may be invaluable
-cost/ time
-risk
what is organisational culture
-the DNA of a business
-what decisions are made + how
-may be resistant to change
how may culture affect change
-may be resistant to / support change
-change was require change of culture
why might change be hard in a small business
-lack of financial resource
-may lack variety in workforce skills, limiting flexibility
-may be hard to persuade leader to change
how might change occur in a large business
-reply on info from middle managers as cant get views from all staff
-find compromise between different parts of business
-cascading with senior managers who pass info down, etc
-costly and time consuming
how can resistance to change be managed
kotter and schlesinger
-education + communication
-participation + involvement
-facilitation + support
-manipulation + co option (perks/roles on offer)
-negotiation + bargaining
-explicit + implicit coercion
why may resistance to change occur
-general dislike of change
-fear (uncertainty, redundancy)
-perception of negative consequences
-attachment to current culture
-lack of agreement
-lack of clarity about change
what is scenario planning
anticipation of different situations / emergencies and the decision of how to manage them to reduce impact
what is risk management
identifying and dealing with the risks threatening a business
what does risk management include
scenario planning
crisis management
what is crisis management
handling potentially dangerous events for a business
what is risk
-possibility of loss or damage
-a threat to objectives
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