1. Managing Change Planning for Change
Revitalising General Motors is like teaching an elephant to tap dance. You find the sensitive spot and start poking.
H Ross Perot
Changing the direction of a large company is like trying to turn an aircraft carrier. It takes a mile before anything happens. And if it was a wrong turn, getting back on course takes even longer.
Al Ries
What do these quotes tell you about planning for change?
BUSS4.8 Planning for Change

2. In this topic you will learn about:
Purposes of corporate plans
Including contingency plans
Assessing internal and external influences on corporate plans
Assessing the value of corporate plans
BUSS4.8 Planning for Change

3. What is a Corporate Plan?
A detailed, medium to long term plan outlining the actions a business will take to achieve its corporate objectives
Corporate Plans
What are Corporate Objectives?
The medium to long term quantifiable targets to fulfil the mission statement
What are Functional Objectives and Strategies
The goals and actions taken by each functional areas in order to meet the CO
Finance
Marketing
Revision Opportunity:
Draw a grid as shown opposite on to A3 paper.
Write down everything you can remember from BUSS3 under each heading. Share your notes to fill in as much of the grid as possible. HR
Operations Mgt.
BUSS4.8 Planning for Change

4. Purpose of Corporate Plans
Clear sense of direction
Directors and all staff if communicated effectively
Encourages accountability
Identifies and gives consideration to range of strategic options
Encourages progress to be tracked
Allows for progress to be reviewed
Monitoring of corporate plan
Preparing a corporate plan
Detailed corporate plan
Review
BUSS4.8 Planning for Change
Discuss the benefits of each stage

5. Influences on Corporate Plans
Internal
Resources
Financial
Workforce
Operational capacity
Culture
Leadership
Mission statement
External
Market conditions
Economic environment
Political and Legal environment
Social environment
Technological environment
The whole of BUSS4 looks at the external environment and managing change all aspects of which will influence corporate plans
BUSS4.8 Planning for Change

6. Value of Corporate Plans
Shows strategic thinking and planning
Shared with
Employees
Potential investors
Other stakeholders
“Joined up” thinking and planning
Common sense of direction
Limitations
Responsiveness to change
Must be flexible
Can not predict future
Can limit spontaneity
Can not avoid the unexpected!
BUSS4.8 Planning for Change

7. A CRISIS RARELY GOES AS PLANNED!
Contingency Planning
The very nature of this unit reflects that businesses have to be able to respond to change and change can be unpredictable
What is contingency planning?
The process by which organisations try to prepare for unexpected and potentially disastrous events
What is crisis management?
The manner in which an organisation responds to an unexpected and potentially disastrous event
Guardian
Heston Blumenthal on the Fat Duck food poisoning scare
Heston Blumenthal talks to Matthew Fort about the food poisoning scare that closed the Fat Duck, and what next for the restaurant
A CRISIS RARELY GOES AS PLANNED!
What steps can a restaurant take to avoid a crisis?
What are the costs to a business?
Can a crisis be avoided?
How important is it to limit any damage?
BUSS4.8 Planning for Change

8. The process of developing a contingency plan
Acceptance
Preventative Measures
Catalogue Possibilities
Business Impact Analysis may form an important part of this
(see next slide)
Crisis Plan
What contingency plans exist in your school or college?
How do you test and review these?
Testing
Review
BUSS4.8 Planning for Change

9. Business Impact Analysis
Potential Threats
What could go wrong?
Probability
How likely is it to happen?
Estimated effect
What will the cost to the business be?
Financial and reputation
Speed
How quickly will it impact on the business functions?
How quickly can the business respond?
Mission Critical Functions
Will it stop the business performing its main function?
BUSS4.8 Planning for Change

10. Contingency Plans Value Sense of security Limits damage
Speeds up recovery process
Informs staff training
Preventative measures can be part of CSR
Limitations
Costly and time consuming
Including opportunity cost
Needs reviewing
Lack of predictability
BBC
Fifa makes 2010 Cup back-up plan
Blatter will appear on BBC One's new Inside Sport programme on Monday
Football's governing body has contingency plans in case South Africa cannot host the World Cup in 2010, Fifa president Sepp Blatter has said.
Fifa has a contingency plan in case South Africa is not ready for the World Cup.
Should there be a Contingency plan in case London is not ready for the 2012 Olympics?
BUSS4.8 Planning for Change

11. Contingency Plan Cadbury’s testing out of date
Cadbury’s withdraws products made in China
Cadbury’s is fined
BBC
Cadbury's testing 'out of date'
The way the chocolate maker Cadbury's tests for salmonella is out of date, according to government scientists.
Cadbury recalls China chocolates
The makers of Cadbury chocolates have decided to withdraw products made in Beijing after a scandal over contaminated dairy products in China.
Cadbury's £1m salmonella fine
Cadbury has been fined £1m for breaking food and hygiene laws relating to a salmonella outbreak.
In each case:
Identify the cause of each event
Identify the potential threat
What actions could have been taken to prevent these events?
Rank each event on a scale of 1 – 10 in terms of seriousness to the future success of Cadbury’s. Justify your answer
BUSS4.8 Planning for Change

12. HOT OFF THE PRESS! http://www.bbc.co.uk/news/business-32060966
What type of integration?
Merger/Takeover?
Horizontal/Vertical?
Which stakeholders will benefit and why?
Which stakeholders will loose out and why?
How does this deal meet both companies’ corporate objectives?
BUSS4.8 Planning for Change

13. In 2012, many companies such as Thorntons, the chocolate retailer, and Comet, the electronics retailer, announced poor financial results as a result of difficult trading conditions. Several commentators claimed that such businesses had been unprepared for changes in their external environment. To what extent do you think that it is possible for businesses to prepare effectively for changes in their external environment? Justify your answer with reference to Thorntons, Comet and/or any other organisations that you know. Source: AQA June (40 marks)
BUSS4.8 Planning for Change

14. Plan your paragraphs Conclusion What is your theme?
What evidence do you have from your businesses?
What key business terms and theory can you use?
Can you contrast mass and niche markets or different businesses in your industry?
What does success depend on?
What is your final judgement?
Can you question the question?
Are there similarities between industries?
Conclusion
BUSS4.8 Planning for Change