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.