3.10 Managing Change Flashcards
What are strategic decisions?
Big and high risk investment decisions that are difficult to reverse
What is an example of strategic decision?
To enter a new market
What are 3 internal influences on objectives and decisions?
Ownership
Power of stakeholders
Business Culture
What does PESTLE mean?
The external influences on a business
What is SWOT analysis?
A framework used to evaluate a company’s competitive position and to develop strategic planning.
What are 2 causes and pressures of change?
Lack of communication
Managing multiple changes
Why do you as a business need to not have lack of communication?
You need to keep stakeholders informed of any changes and what impact is it going to have
What does managing multiple change mean for the business?
Focusing on one change at the time can help people not get confused
How did Lego have external factors that impacted the business?
Moved into a new market
Name 3 internal changes for a business
Business structure
Organisational size
Leadership style
Name 3 external changes for a business.
Competition
Technological Change
Economy
What is a disruptive change?
A significant change within a business caused by internal and external factors
What is an incremental change?
The gradual process of making improvements to a business
What is Lewin’s Force Field analysis?
The part of strategic management that tries to ensure that a business responds to the environment in which it operates
Why is change a good thing? 2 reasons
Staff could get demotivated without change
Brings in new ideas
Name a business that had to deal with change and diversify.
The Royal Mint
How did The Royal Mint have to diversify?
Due to the increased use of cards, they had to start making jewelry and collector coins
What is an example of the value of change for an organization?
Improved competitiveness
Why is improved competitiveness valuable for an organisation?
Businesses need to stay relevant
List 2 Reasons of why being a flexible organisation is valuable for a business.
Can respond to external shifts
Fewer layers of communication
Why is being a flexible organisation a downside? 2 points
Decision-making overload
Frequent training - increases costs
What are organic structures?
These are flat, decentralised informal with a value placed on collaboration
What are mechanistic structures?
The opposite, tall, formal, centralised e.g military and NHS
What does information management mean?
Where we get information from a written source e.g textbook
