Managing Strategic Change in Business Studies

These flashcards cover key concepts related to managing strategic change in business, including theories, types of change, organizational culture, and risk management.

What does change management involve?

The process that ensures a business responds to its operating environment.

What is internal change in a business?

Factors within the business that cause change, such as mergers, new job roles, and strategic decisions.

What do PESTLE factors refer to in external changes?

Political, Economic, Social, Technological, Legal, and Environmental factors affecting a business.

What characterizes step change?

Significant and rapid changes that often require decisive action.

What is incremental change?

Change that occurs over time in small stages, often focused on continuous improvement.

Define disruptive change.

Irreversible changes that may create massive new markets and alter a business's future.

What is Lewin's force field analysis?

An analysis that shows the balance between driving forces for change and resisting forces.

What is one internal force that drives change in business?

Need for higher profits.

Identify one external force that may drive change.

Customer demand.

What are some reasons why change is resisted?

Self-interest, misunderstanding, low tolerance for change, and differing views.

What are the benefits of change in a business?

Can lead to new processes, a motivated workforce, and improved productivity.

What is a flexible organization?

An organization that can respond quickly to changes in the external environment.

What is delayering in business?

Removing a layer of management to reduce costs and improve profitability.

What distinguishes organic structures from mechanistic structures?

Organic structures are decentralized and have flexible management styles, while mechanistic structures are centralized with a rigid hierarchy.

What is knowledge and information management?

Managing information from its creation to use, ensuring its value is unlocked.

What are Kotter and Schlesinger’s four reasons for resisting change?

Self-interest, preference for the status quo, differing views, and misunderstanding/fear.

Name one way to overcome resistance to change according to Kotter and Schlesinger.

Education and communication.

What is corporate culture?

The norms and values that define how things are done in an organization.

What are Handy's four types of company cultures?

Power culture, role culture, task culture, person culture.

What might prompt a business to change its corporate culture?

Merging with another company, a crisis, or the need to evolve.

What is the purpose of a SWOT analysis in strategic implementation?

To analyze internal and external pressures on the business.

What does strategic planning help a business achieve?

It helps outline mission, vision, values, long-term goals, and action plans.

What is contingency planning?

A course of action designed to help a business respond effectively to significant future events.

Define risk in business.

The possibility of loss or damage that may hinder achieving business objectives.

How can businesses manage risk?

By ignoring it, reducing probability, sharing risk, making contingency plans, or treating risk as an opportunity.