4.1 – What is Change?

 change is part of everyday life for international businesses  huge changes in information technology and telecommunications  How different have our lives been due to technology?

 Business still out to make a profit with a changing marketplace  Some businesses don’t survive change  Others take advantage and become successful  3 causes of change: new technology, new processes, new attitudes

 inventions: are totally new products that are based on a creative idea  innovations: are modifications to an invention that take the inventor’s initial concept even further  Phone -> invention  Cell phone -> innovation  Digital technology -> invention that brought about cell phone

 technological change can occur on a grand scale or on a smaller scale ATM -> grand scale Resealable chip bags -> smaller scale  patent registration protects the invention for the owner and offers exclusive use/rights  inventor can licence the invention and/or sell the new product to others

 patents, copyrights, and licences are valuable property  inventors often partner with other companies

 process change, often initiated by technological change, takes place in manufacturing, distribution, inventory control, accounting, and marketing  manufacturing: change in the way something is made - faster, better, less expensive

 distribution: electronically - , Internet, web sites have eliminated need for intermediaries, wholesalers, importers, retailers  Now on-line catalogue distribution methods, easier transportation of products and business papers by such high technology companies as Federal Express

 Inventory control: manually done to electronically linked; used by suppliers, customers  Just-in-time - an inventory control system that schedules products to arrive as they are needed for manufacturing or for supply to customers, strong relationship needed by purchaser and supplier

 Kanban is a Japanese philosophy that has as a major principle the elimination of waste, especially wasted time, labour, and resources (similar to JIT)

 Accounting: new accounting systems and software allow for instantaneous reporting of profit, inventory, investment, and other financial data; know precise information from all stores-departments- plants; online inventory management

 Marketing: primarily process changes big box retailers (category killers), power centres smaller retailer becoming more specialized data mining (examining your credit purchases, bank card records, loyalty cards) is a way of connecting specific customer characteristics to their purchases - predict when a customer will need a product target marketing and distribution information; promotional activities; coupons, contests, and other sales promotion methods target customers

 Changes in values equals changes in purchases  Environmental awareness; concern for our health; social conscience; trends or fads or long-term and lasting in the marketplace;