3.2: Business Change Flashcards
3.2.1: Business Change (20 cards)
What is business change? and Why must change be managed carefully?
Adapting operations, strategy, or structure in response to internal or external pressures. It affects stakeholders and can face resistance; poor management reduces success.
What are internal causes of change? and What are external causes of change?
Internal: Management style, employee attitudes, business culture, size, ownership.
External: Legislation, economy, consumer tastes, technology, market conditions, demographics.
How does a change in business size impact a firm? and How does workforce change affect business?
A change in business size may lead to economies of scale, communication challenges, or staff alienation.
Workforce change may bring new leadership or skill demands can shift culture and strategy.
How does new ownership affect a business? and How can economic change affect business?
New ownership can cause resistance from staff and community; possible job losses and efficiency drives. How can economic change affect business: Recession or growth impacts spending, jobs, costs, and market opportunities.
How does legislation drive change? and How does technology drive change?
New laws (e.g. sugar tax, pensions) increase costs and compliance needs. Technology forces adaptation, innovation, and sometimes automation or redundancy.
How do market changes affect business?, How does population change affect business? and How do consumer tastes impact business?
How do market changes affect business: New competitors, disrupted supply chains, and evolving customer behaviour. How does population change affect business: Alters labour supply and demand for certain products (e.g. aging population). How do consumer tastes impact business: Require businesses to innovate or reposition (e.g. shift to health-conscious products).
What are planned changes? and What are unplanned changes?
What are planned changes: Timetabled, strategic shifts with stakeholder consultation and preparation.
What are unplanned changes: Sudden changes due to crisis, usually reactive and poorly resourced.
Why retrain the workforce?
To adapt to tech, improve flexibility, and maintain productivity.
Why look for new markets?
To offset short product life cycles and reach new customer segments.
What is change management?
Planning, leading, and implementing change to minimise disruption.
What is the role of leadership in change? and What is employee preparation?
The role of leadership in change is to set vision, support staff, model change, and secure stakeholder buy-in.
Employee preparation involves communication, reskilling, and involving staff early
Why increase R&D during change? and Why is capital investment important?
Why increase R&D during change? To innovate and maintain a competitive edge.
Capital investment importance: Modern systems and equipment are often needed to support change.
What is resistance to change? and How can resistance be overcome?
What is resistance to change? Reluctance from staff or stakeholders due to fear, uncertainty, or self-interest.
Resistance can be overcome by Communication, involvement, training, clear direction, and support.
What is Lewin’s 3-step model?
Unfreeze → Change → Refreeze.
Unfreeze: Break old habits, show need for change, create safe environment.
Change: Implement new processes with support and communication.
Refreeze: Stabilise changes, make them the norm.
What are J. Storey’s 4 approaches?
What are J. Storey’s 4 approaches?
Imposed total, imposed piecemeal, negotiated total, negotiated piecemeal.
What is imposed total package? and What is imposed piecemeal?
Imposed total package: Senior leaders implement all change without consultation (fast but risky).
Imposed piecemeal: Small changes implemented by managers, quick but risks inconsistency.
What is negotiated total package? and What is negotiated piecemeal?
Negotiated total package: Full change agreed with staff/unions, improves support but takes time.
Negotiated piecemeal: Small changes negotiated stage-by-stage, reduces resistance but may lack coordination.
What factors influence which approach is used?
Culture, urgency, stakeholder power, resources, and leadership style.
How does culture affect change? and What is the leader’s role in cultural change?
How does culture affect change: Entrenched attitudes can block change; culture must evolve for success.
What is the leader’s role in cultural change: Drive the vision, model behaviours, and embed new values and training.
Why does change often fail?
Poor planning, resistance, lack of resources, unclear vision – ~65–70% fail.
