DP5 Driving forces

Driving forces

Those forces affecting a situation that are pushing in a particular direction and are supporting the goal or proposed change.

Driving forces include:

• Owners/Managers

• Employees

• Competitors

• Legislation

• Pursuit of profit

• Reduction of costs

• Globalisation

• Technology

• Innovation

• Societal attitudes

Roles of Managers:

• Will provide strategic direction for changes or be involved in a ‘hands on’ approach

• Must ensure leadership & management across the business are all clear about the changes required + consistent message is given to all stakeholders.

Roles of Employees:

• If employees support the change + happy to implement it → likely the change will be successfully introduced

• One of the main reasons for the success & failure of change.

• Many businesses now give employees more freedom & flexibility = new ideas & innovation.

Roles of Competitors:

• Business must be ready to respond & implement any changes to losing customers = ensures they don’t lose customers / market share.

• Competition between companies = always aware of whereabouts & activity of competitors so they can respond to changes quickly.

Role of Legislation:

• Local councils affect businesses – permits, licences, parking restrictions etc.

• Businesses must deal w/ three levels of gov – fed, state, local - all initiate changes & business must respond

• Includes changes in policies & procedures – employment, equal opportunity, anti-discrimination & privacy

Role of Pursuit of Profit:

• Profit drives businesses to introduce changes to increase sales, market share & profit.

• A business may continue to look at improving quality of products and services to increase profit

• Could include cutting back on expenses and costs

Role of Reduction of costs:

• Reducing costs & operating expenses to support the generation of profit

• Often the quickest way to improve profits

Role of Globalisation

Globalisation: the process of increasing the integration of businesses & economics w/ all enterprises competing w/ each other in the world economy

• Growth of trade agreements, developments in technology, flow of workers changing in the workplace

Role of Technology

• Can change the way businesses do things – implementing new way to improve E&E of business operations

• E.g. online booking systems, chatbots

Role of Innovation

Innovation: creating more efficient & effective processes, products and ideas, and can increase likelihood of business succeeding.

• Can include implementing new ideas, creating dynamic products or improving existing services.

Role of Societal Attitudes

• Change in societal attitudes can include modification in opinions, values & lifestyle changes,

• Changes in opinions towards the environment