UNIT 4 AOS 1 Need for change

Business change

business adopting of a new idea or behaviour that results in a business modifying how they operate.

Factors and stakeholders in a business internal/external environment that affects change

Changing consumer tastes

Changing employee expectations

Competitors

Changes in laws/legislation

Technology

How can a business approach change

Proactive and Reactive

Proactive

Anticipate, initiate and embrace change

Reactive

Responding to change as it becomes neccesary

Cons of Proactive

Positive:

Business able to stay ahead of competitors

More time spent planning for change

Negative:

Business may misjudge what needs to be change, leading to negative impact on business performance

Cons of Reactive

Positive:
Business able to learn from mistakes of competitors, therefore can improve

Provides business on knowledge of what to change

Negatives:

Business will be one step behind of competitors

When reactive change, business is forced to change quickly, negative impact on employees

Why should change be embraced

All business will face change, being able to adapt and implement can

enhance a business’s competitiveness

increase a business’s chance of survival/success

improve productivity

can contribute positively to staff satisfaction and motivation