1. Impact of External Change
“changes over which an organisation has no control”

2. Learning Objectives: By the end of this topic you should be able to:
discuss the impact of external change on an organisation

3. External Change Factors
finance - changes in:
VAT rate,
interest rates (loans, mortgages),
insurance premiums,
currency exchange rate changes
may affect the cost of raw materials (sourced from abroad)
making products more expensive (or cheaper)

4. External Change Factors
government legislation - changes in:
laws,
grants / initiatives,
trade agreements
technology
developments make products obsolete
production systems may have to change to compete
employees may need to retrain = cost &/or staffing changes

5. External Change Factors
culture & fashion
may mean the company has to diversify
make new products & need to lose old ones
competition from other companies
other companies making similar/better products
may need to reduce the hours worked
or make staff redundant
changes in individual spending patterns
may mean more/less products sold = more/less staff required