Change in Business

1. Business Change

Businesses must adapt to remain competitive, affecting strategy, workforce, and productivity.

2. Internal Causes of Change

Factors within the business, such as leadership shifts, ownership changes, growth, retrenchment, and technology.

3. External Causes of Change

Factors outside the business, including market shifts, consumer preferences, legislation, economic conditions, and competition.

4. Leadership Change

New CEOs or managers bring different visions, e.g., Steve Jobs returning to Apple in 1997.

5. Change in Ownership

Mergers, takeovers, and acquisitions alter business strategies, e.g., Elon Musk acquiring Twitter (X).

6. Business Growth

Expansion through organic (new stores) or inorganic (mergers), e.g., Starbucks expanding globally.

7. Retrenchment

Downsizing due to cost-cutting, e.g., Marks & Spencer closing unprofitable stores.

8. Impact of Technology on Business

Automation and AI improve efficiency, e.g., Amazon using robots in warehouses.

9. Market Change Example

Netflix replacing Blockbuster as the dominant entertainment provider.

10. Consumer Preference Change Example

The rise in demand for sustainable products, e.g., increasing popularity of EVs.

11. Effect of Legislation on Business

New laws increase costs and compliance needs, e.g., waste tax raising business expenses.

12. Impact of Economic Factors on Business

Interest rates, inflation, and recessions affect business performance, e.g., 2008 financial crisis.

13. Competitive Environment Example

Uber disrupting the taxi industry with app-based ride-hailing.

14. Planned Change

Gradual and controlled adjustments, e.g., Apple transitioning to in-house chips.

15. Unplanned Change

Unexpected and disruptive shifts, e.g., COVID-19 increasing remote work.

16. Internal Change

Changes from within the business, e.g., Tesla focusing on AI self-driving technology.

17. External Change

Changes forced by external factors, e.g., COVID-19 driving businesses toward e-commerce.

18. Uber’s Internal Change

Expansion into Uber Eats to diversify services.

19. Uber’s External Change

Legal battles and regulation changes worldwide.

20. Uber’s Planned Change

Development of autonomous ride-sharing cars.

21. Uber’s Unplanned Change

Protests from taxi drivers due to unfair competition.

22. Effects of Change on Production

New equipment and processes needed, e.g., McDonald's self-order kiosks.

23. Effects of Change on Product Development

Expansion into new markets, e.g., Amazon launching AWS.

24. Effects of Change on Legal Compliance

Meeting government regulations, e.g., bans on single-use plastics.

25. Effects of Change on Workforce

Employee retraining and restructuring, e.g., companies upskilling workers for AI roles.

26. Effects of Change on Market Expansion

Businesses enter new regions, e.g., Starbucks expanding into China.

27. Project Management in Change

Planning and implementing change with clear objectives, timeframes, and budgets.

28. Project Champion

A key person responsible for driving business change.

29. Employee Commitment in Change

Involving employees in decision-making to ensure smooth implementation.

30. Imposed Change

Change enforced without employee input.

31. Negotiated Change

Change implemented with employee involvement.

32. Piecemeal Change

Gradual change allowing time for adaptation.

33. Total Change

Large-scale and immediate change.

34. Resistance to Change

Employees resisting new strategies due to fear, habits, or mistrust.

35. Self-Interest in Resistance to Change

Employees fear job losses or reduced benefits.

36. Preference for Stability in Change

Employees prefer routine over uncertainty.

37. Different Assessment Resistance

Employees believe management’s change plan is flawed.

38. Fear & Mistrust in Change

Employees doubt leadership’s intentions.

39. Education & Communication in Change

Clearly explaining the reasons for change to reduce resistance.

40. Participation & Involvement in Change

Engaging employees in decision-making to ease transition.

41. Support & Training in Change

Helping employees adjust to new systems and processes.

42. Negotiation & Agreement in Change

Finding compromises to implement change smoothly.

43. Manipulation & Co-option in Change

Using influencers to gain support for change.

44. Coercion in Change

Forcing change as a last resort.

45. Lewin’s Three-Step Change Model

A method to implement change effectively in three stages.

46. Lewin’s Step 1 – Unfreeze

Breaking old habits and preparing for change.

47. Lewin’s Step 2 – Change

Implementing new systems with support.

48. Lewin’s Step 3 – Freeze

Reinforcing change with policies and procedures.

49. The Role of Leadership in Change

Leaders define strategy, communicate change, and monitor progress.

50. Richard Branson & Change Leadership

Encourages innovation, risk-taking, and employee engagement at Virgin Group.

51. Organisational Culture

The shared values, beliefs, and behaviors of a company.

52. Organisational Culture Impact Example

Google’s innovative and flexible culture vs. Yahoo’s rigid structure.

53. Evaluating Change Management

Measuring success using investment, employee feedback, and costs.

54. Marks & Spencer Change Management

Closed underperforming stores and updated product range but still faces challenges.

55. Importance of Managing Change

Prepares businesses for risks, reduces disruption, and improves competitiveness.