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Business change
the adoption of a new idea or behaviour that results in a business operating in a different way
External environment reasons for change
changing consumer tastes
changes in law/legislation
increased competition
Internal environment reasons for change
Changing employee expectations
Approaches to business change
Proactive
Reactive
Proactive
They anticipate, initiate, and embrace change
Reactive
Only respond to change as it becomes necessary to do so
Advantage of proactive approach
Can gain competitor advantage by getting ahead of other companies
Disadvantage of proactive approach
Can be costly, no guarantee for success
Advantage of reactive approach
Spends money as needed, so less chance of wasting money
Disadvantage of reactive approach
Can all fall behind other companies whoo are being proactive
Why must change be embraced by a business?
enhances a business’s competitiveness
increases a business’s chance for survival
improve productivity
contribute positively to staff satisfaction and motivation
Kmart - need for change
2010:
kmart struggling to differentiate from low-end stores
lowered prices, simplified product ranges, and stocked more on trend pieces
led to larger increase in sales and increased market share
successful change
Note
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