what is proactive change and it it good, and what management style uses this
proactive change is planned and occurs before a business is affected by pressures in their environment, A proactive approach is more effective in managing change as it allows the
business to gain a competitive advantage due to not being affected negatively by the change in the environment. It even allows the business to be prepared when the change occurs, so that the change does not dramatically impact against the business. Using a proactive approach management can utilise a participative or consultative management style to ensure that employees accept and welcome change rather than resist change.
Proactive change:
Foxtel launched Kayo Sports and Binge to enter the growing streaming market before losing too many customers to services like Netflix and Stan. This was a planned move to adapt to consumer demand for on-demand content.
Eg - meeting with the employees to discuss and develop changes to make the business more efficient and run smoother
what is reactive change and is it good, and what management style can use it, and an example
change that is unplanned and occurs after a business is affected by pressures in their environment. It is less effective in managing change for the business as the business is already been affected by the change potentially causing a loss in productivity or sales, due to their failure to recognise the change was imminent. The failure to respond immediately to the change can cause the business a loss of time to recover from the change. Given the chaotic nature of the response, management have no choice but to utilise an autocratic or persuasive management style to respond swiftly to the change.
Proactive change:
Foxtel launched Kayo Sports and Binge to enter the growing streaming market before losing too many customers to services like Netflix and Stan. This was a planned move to adapt to consumer demand for on-demand content.
Eg - dealing with a crisis, then putting measures in play to ensure similar circumstances dont occur again
Launching Kayo Sports in response to declining traditional pay-TV subscriptions and the rising popularity of sports streaming from competitors.
Introducing cheaper streaming options like Binge after losing customers to services like Netflix and Stan.
Distinguish between proactive and reactive change
The difference between proactive and reactive change is that proactive change is initiated by a business in anticipation of future events, allowing it to take control and stay ahead, while reactive change is implemented in response to events that have already occurred, often to fix a problem or adapt quickly to unexpected pressures.
define business change
It is any planned or unplanned alteration to the way a business operates as a result of changes from the internal or external environments.
An example of business change at Foxtel is its shift from traditional cable TV to streaming services like Foxtel Now, Kayo Sports, and Binge.
what is a key performance indicator (KPI)
Key performance indicators refer to a specific criteria used to measure a business’s success in achieveing efficiency and effectiveness.
As such, key performance indicators are important to all business types as they assist the business (through benchmarking) to determine how well the business is meeting its desired goals, set targets and therefore how effective and efficient they have been.
example of KPIs
- key performance indicators as sources of data to analyse the performance of businesses, including percentage of market share, net profit figures, rate of productivity growth, number of sales, rates of staff absenteeism, level of staff turnover, level of wastage, number of customer complaints, number of website hits and number of workplace accidents
explain two KPis at foxtel being number of sales, number of website hits
Number of Sales
Foxtel has experienced fluctuations in subscription sales. Traditional cable TV subscriptions have declined, but streaming services like Kayo Sports and Binge have helped boost digital sales. Tracking the number of sales helps Foxtel assess the success of new platforms and promotions.
Number of website hits
As Foxtel shifted focus to digital content, the number of website hits became a key indicator of consumer interest and online traffic. Spikes in visits after major promotions or new content releases (like sports events or HBO shows) can guide marketing and customer engagement strategies.
What are driving forces and examples
These are forces that work to encourage, foster and initiate change.
EG - managers, employees, competitors, pursuit for profit, reduction for costs
Explain how managers and employees can be a driving force, and how they relate to foxtel
Managers (select memebers of an organisation who are authorised by the owners to operate the business to achieve set objectives), they also share their vision and try and get others inspired to change by being role models, driving the workplace to be better. This can be done through the use a participative management style, to create positive corporate culture.
If employees (people who assist in the completion of set tasks for pay) if employees support and are happy with the change they can be a great force for driving change through tthe rest of the business, their willingness to learn impacts
What are restraining forces and examples of them
These are those that work against change, creating resistance, including managers, employees, time, organisational inertia, legislation and financial considerations
Explain managers as a restraining force
Manager (select member of organisation who are authorised by owners to operate the business to achieve set operations) - if a manager is not convinced by the change, or fear it may threaten their position they can act to seriously inhibit the chances of its success, by negatively influecing employees, or ignoring tasks completely -
Overwhelmed by ongoing change: With Foxtel’s shift to streaming (like BINGE/Kayo), managers might feel constant pressure and become resistant to more change.
explain employees as a restraining force
employees (people who assist management in the completion of set tasks for a fair level of remuneration)
they can be a major source of resistance as, they may have the fear of unknown, fear for job security, fail to see the reason fro change. Can be emotional and the level of communication training needs to be given to overcome this restraining force.
Low morale after redundancies: Voluntary job cuts and cost-saving moves have hurt trust and motivation.
what is time as a restraining force.
time (intagible resource that allows an organisational to plan, prioritise and execute their plan),
if a competitor moves into an industry then the business would ideally respond as quickly as possible , however the time required procedures or business operations can be a resistance.
Rapid shifts to streaming (like Kayo/BINGE) mean changes must happen fast, but people need time to adjust.
Describe lewins force field analysis
A model, that businesses can use to determine which forces are operating to drive the change or resisting the change. For change to be successfully implemented, management must reduce restraining forces and enhance the relative strength of driving forces to assist the organisation to move to the new desired position. If these restraining forces cannot be reduced, the change will not be successfully implemented in the business.
10 mark answer for lewins analysis - driving, restraining evaluating change
Lewin’s force field analysis theory is a tool used to assist decision making and change in businesses’. It involves 5 key principles, (defining change, identifying drving and restraining, analysing forces weighting and ranking them, create a action plan and implement a response, evaluate response), and can be used at Foxtel. IT is A model, that businesses can use to determine which forces are operating to drive the change or resisting the change.
change - foxtel has announced seven new channels launching, this is aimed to attract a broader audience and increase subscriber engagement, things like real history, real crime etc. Another chnag eis significant pricing chnages desinged to offer more flexible subscription options, adress market pressure from cheaper streaming services, as welll as rising cost pressures.
THe driving forces can be competitors and pursuit for profit. The competitors, foxtel needs to respond to the actions of competitors or risk being left out of the industry, with the pursuit of a competitive edge. The rapid growth of digital streaming services like Netflix, Stan, and Disney+ is putting intense pressure on Foxtel to innovate or risk losing market share. These competitors offer flexible, cheaper, and more user-friendly platforms. As a result, Foxtel is being pushed to invest in its own online services (Binge and Kayo) to stay competitive in the market.
Pursuit for profit - The shift to online models offers higher long-term profitability due to lower distribution costs, broader reach, and access to targeted advertising. Foxtel sees this transformation as a way to grow revenue and improve financial sustainability, especially as traditional pay-TV subscriptions decline
As restraining forces - Employees - The shift to online models offers higher long-term profitability due to lower distribution costs, broader reach, and access to targeted advertising. Foxtel sees this transformation as a way to grow revenue and improve financial sustainability, especially as traditional pay-TV subscriptions decline
Then time - Transitioning to a fully digital model is time-consuming. Infrastructure changes, retraining staff, developing digital platforms, and gradually moving customers from legacy systems to online subscriptions takes significant planning and time. This can slow down the urgency to implement the change.
Foxtel’s transition to a more online-focused model, including platforms like Binge and Kayo, is driven by strong competitive pressure (4/5) from global streaming services like Netflix and Disney+, which are capturing market share, and a moderate pursuit for profit (3/5), as the shift promises lower distribution costs and greater long-term revenue. However, this change is equally restrained by significant employee resistance (5/5), due to fears of redundancy and the need for new digital skills, as well as time constraints (2/5) tied to the complexity and duration of the digital transformation. With both driving and restraining forces ranked equally at 7/10, Foxtel risks stagnation unless it implements strategies to reduce resistance (e.g., training programs or job transition support) or amplifies driving forces through competitive pricing or faster innovation. This
implement a change response (foxtel will respond to these forces), fear is most important for job security as foxtel moves away from traditional media, so structured management progra, with clear communication, and introduce incentives to equip employees with skills, , through a gradual period to give employees time to adapt.
To improve the success of its shift to an online model, Foxtel could implement a structured change response by introducing comprehensive employee retraining programs and clear internal communication strategies to reduce fear and uncertainty. Additionally, transitioning from an autocratic or consultative management style to a more participative approach would allow employees to contribute ideas and feel involved in the transformation, reducing resistance and improving morale. This inclusive style may also uncover innovative solutions from frontline workers. Evaluating this response, if employees feel supported and empowered, the strength of the restraining force (currently 5/5) may drop significantly, allowing the driving forces to outweigh resistance. Over time, this would help Foxtel shift more smoothly to its digital platforms while preserving internal stability and strengthening staff commitment to the organisation’s future.
Ask ChatGPT
what are the points in 10 mark lewins answer
describe lewins,
identifying the driving and restraining forces influence success of change
driving forces 2 - competitors, pursuit for profit
restraining forces - employees and time
weighting forces - competitors - 4 out of 5, pursuit for profit 3/5,
employees - 5/5
time 3/5
(foxtel can rank forces to see what needs to be focused on)
implement a change response (foxtel will respond to these forces), fear is most important for job security as foxtel moves away from traditional media, so structured management progra, with clear communication, and introduce incentives to equip employees with skills, , through a gradual period to give employees time to adapt.
Advantages and disadvantages of Lewins
ADs - force field analysis helps to identify obstacles that lie ahead so that we can make a plan to strengthen the forces supporting the decision and take actions to reduce or avoid the forces preventing it.
It can be used as a visual aid, and help simplify comunnication and break barriers.
DISadvs - requires every group memeber to participate so they have all the info needed, which can be difficult to achieve
may lead to division in the group, as some may support the change and resistt the change
what is the aim of porters
This is a strategic planning model to initiate and manage change by attempting to gain a competitive advantage over other similar businesses. The objective of gaining a competitive advantage in Porter’s Generic Strategies is to improve performance in those areas identified as key performance indicators that are a source for the need to change.
what is cost advantage - porters
a competitive advantage is gained through reducing or altering cost structures of the business
A business using the generic strategy of ‘lower cost” can maximise profit by
being the most efficient producer, where the business can reduce costs and at the same time charge similar prices to competitors
Increase the businesses proportion of sales revenue in the industry by being able to charge and maintain lower prices relative to those similar competitors in the industry.
this can be done through - purchasing lower cost materials, waste minimisation
2 way foxtel can use cost advantage - porters
Shifting to online platforms – By focusing on Binge and Kayo instead of traditional cable TV, Foxtel cuts costs like installation and maintenance of set-top boxes.
Reducing staff or automating services – Using technology like AI chat support or streamlining departments can lower labour costs and improve efficiency.
Advantages and disadvs of cost advantage
improved competitive advantage, leading to higher sales and net profit figures, helping to achieve business objectives.
reduce level of wastage and keep in line with coorporate social responsibility
disadvs- may put business at risk of losing market share as other businesses can copy these low cost strategies and undercut the prices leading to declining profitability.
termination of employees may cause resentment and high anxiety of employees who remain due to the fear of the job uncerntainty, caused by implementation of automated systems.
what is the differentiation strategy - porters - to gain competitive advantage s
In a differentiation strategy a business will make their product different, unique or superior in some way to gain a competiitve edge and allow the business to market itself as a leader in that industry. Consequently, this will cause its market share to increase due to the business controlling a greater percentage of total industry sales generated.
examples - specializing in specific areas -
enhancing quality of services or good
how can foxtel use differentiation
Exclusive content – Offering shows and live sports that competitors like Netflix or Stan don’t have (e.g. AFL or NRL on Kayo) makes Foxtel stand out.
Bundled services – Foxtel can bundle TV, movies, sports, and streaming (like Binge + Kayo) into one package, giving customers more value and a unique experience.
similarities and differences of differentiation
a business will be able to improve customer loyalty
develop revenue gains through mutiple brandings
improve market share
disadvantages -
may find a rival business will copy strategy leading to a decrease in the customer base.
may be costly to implement new brnads and techniques
