1. Change

2. Causes of Change within a Business
Current topical areas
Social trends
Growth and decline of sectors
Demography
Re-organisation of the business
Growth
Economic
Technology
Competition
Legislation
Pressure groups
European issues

3. Current Topical Areas Increasing oil prices Waste management
Recycling and packaging
Contribution to climate change

4. Social Trends Multicultural society Immigration Crime
Alcohol and drug abuse
Internet
Mobile phone technology

5. Growth and Decline of Sectors
Primary
Secondary
Tertiary

6. Demography Population trends : Size of population
Impact of changes in birth rate, death rate
Working population
Increase in the number of women working

7. Re-organisation of Business
Economies of scale
Diseconomies of scale
Technology
Downsizing

8. Growth Organic Mergers Takeovers Vertical Horizontal Lateral
Diversification
Buyouts by management/employees

9. Economy The economic environment will influence the
behaviour of an organisation and may force
it to review its objectives.
The following should be considered:
Government’s fiscal policy
Interest rates
Inflation
Recession
Boom

10. Business Legislation Rights of employees Rights of consumers
Ergonomic health and safety
Environmental issues – waste disposal, pollution etc.

11. Technology The speed of technological advances will greatly influence
an organisation’s ability to compete effectively. These
changes are likely to affect the functional areas of the
organisation and the owners/management will have to
make important decisions in relation to:-
Costs – upgrading machinery etc.
Staff – number required, possible redundancies, training etc.
Product/service – materials, quality etc
Market share/market growth
Competitors

12. Pressure Groups Examples can include:- Trade unions
Animal Rights Group
Greenpeace
Friends of the Earth

13. Competition
The level of competition may force an organisation to become a ‘market follower’ rather than a ‘market leader’.
The behaviour of competitors can influence an organisation’s ability to maintain market share or in fact be eliminated from the market altogether.
The level of competition will influence the organisation’s:
choice of marketing mix for its product/service
investment decisions
strategic planning

14. European Union Issues Euro zone EU enlargement EU immigration
EU legislation

15. Managing Change Envisaging change Win support for change
Execute the change

16. Envisaging Change Redesigning jobs Redesigning workplace
Rewriting work policies
Retraining
Pay and employment protection
Business security and status
Measurable targets

17. Reasons for Resistance to Change
Fear of the unknown
Fear of failure
Fear of loss of earnings or job
Increased workload
Break up of work group
Loss of control
Loss of self-esteem if status is lowered

18. Win Support for Change
Education and communication to help staff understand the need for change.
Participation and involvement of staff at the planning and implementation stage.
Training and support offered.
Negotiation and agreement of incentives.
Clearly define outcomes.

19. Executing Change Implement and control the change by:
Setting SMART targets
Monitoring and analysing performance
Constant review