1. Managing Change Change in business is concerned with altering the way people do their work. It involves changing structures and introducing new technology to produce different outcomes. Change in business is concerned with altering the way people do their work. It involves changing structures and introducing new technology to produce different outcomes. Business must respond to change if they are to maintain a competitive advantage. Business must respond to change if they are to maintain a competitive advantage. Changes include: production, marketing, the business plan, objectives and goals. Changes include: production, marketing, the business plan, objectives and goals. Changes are external (outside the business) or internal (inside the business) Changes are external (outside the business) or internal (inside the business)

2. External Influences The changing nature of markets The changing nature of markets constantly changing, reflecting changing needs, wants, fashions, technology, population and concepts of quality. Also other countries trade policies, patterns of demand, competition, exchange rates and weather. constantly changing, reflecting changing needs, wants, fashions, technology, population and concepts of quality. Also other countries trade policies, patterns of demand, competition, exchange rates and weather.

3. Economic Influences Economic Influences economic cycles, employment, inflation, consumption, investment. economic cycles, employment, inflation, consumption, investment. the labour force, wages and prices the labour force, wages and prices govt policies, such as microeconomic reform govt policies, such as microeconomic reform international economic environment, infrustructure, transport and power international economic environment, infrustructure, transport and power

4. Financial Influences: Financial Influences: Deregulation of financial system: removal of Govt restrictions Deregulation of financial system: removal of Govt restrictions Increasing range of financial products and increased competition of financial institutions. Increasing range of financial products and increased competition of financial institutions.

5. Geographic influences: Geographic influences: Population (movements, increases, decreases) Population (movements, increases, decreases) Availability of natural resources, climate, water Availability of natural resources, climate, water Aust’s geographic isolation, Aust businesses expanding O/S Aust’s geographic isolation, Aust businesses expanding O/S proximity to suppliers, competitors, customers proximity to suppliers, competitors, customers changes in landscape (new roads) changes in landscape (new roads) Industry clusters (businesses with linking relationships setting up in close proximity) – outsourcing of duties in production process to 3 rd parties. Industry clusters (businesses with linking relationships setting up in close proximity) – outsourcing of duties in production process to 3 rd parties. Act of God – Natural disasters Act of God – Natural disasters

6. Social Influences Social Influences Ageing population (nursing homes, health services) Ageing population (nursing homes, health services) Changing role of women in workplace Changing role of women in workplace growth of leisure and health activities (day spas, gyms) growth of leisure and health activities (day spas, gyms) > diversity in population, new opportunities for retailers. > diversity in population, new opportunities for retailers. Trend towards retirement Trend towards retirement Unpopular business decisions, environment record Unpopular business decisions, environment record Revelations of exploitation or corruption Revelations of exploitation or corruption Stereotyping, racism, sexism Stereotyping, racism, sexism General changes in social attitudes General changes in social attitudes

7. Legal Influences Legal Influences Govt legislation, Fed and state, regulatory bodies, govt bodies, GST, BAS, ACCC Govt legislation, Fed and state, regulatory bodies, govt bodies, GST, BAS, ACCC Competition regulation, health and safety, consumer protection, licensing, taxation, credit Competition regulation, health and safety, consumer protection, licensing, taxation, credit Legal made by courts – precedents for other cases eg public liability costs Legal made by courts – precedents for other cases eg public liability costs Political Influences Political Influences Each party has its own objectives for businesses, they create legislation and policies that have impact. Each party has its own objectives for businesses, they create legislation and policies that have impact. Managers need to plan for outcomes of change in government Managers need to plan for outcomes of change in government

8. Technological Developments Technological Developments technology changes influencing: technology changes influencing: production methods production methods information exchanging information exchanging agriculture and mining agriculture and mining Lowering costs of production Lowering costs of production reducing lead time reducing lead time reducing barriers of distance, suppliers and customers reducing barriers of distance, suppliers and customers Creating competitive advantages Creating competitive advantages

9. Internal Influences Effects of accelerating Technology: Effects of accelerating Technology: E-commerce: Buying and selling of products, funds transfer, electronic support for products / services. E-commerce: Buying and selling of products, funds transfer, electronic support for products / services. New systems and procedures: New systems and procedures: Reorganising employees into work teams to gain productivity and creativity benefits Reorganising employees into work teams to gain productivity and creativity benefits Using Total Quality Management principles to emphasise quality and continuous improvement Using Total Quality Management principles to emphasise quality and continuous improvement Worlds best practice, benchmarking Worlds best practice, benchmarking Computer systems and techniques, CAD, CAM, stock, POS Computer systems and techniques, CAD, CAM, stock, POS Changes to practices such as petty cash, rostering Changes to practices such as petty cash, rostering

10. New Business Cultures: New Business Cultures: Refers to shared attitudes, values, beliefs of people. The way people in a business behave. Refers to shared attitudes, values, beliefs of people. The way people in a business behave. Modern communication methods ie email Modern communication methods ie email downsizing – reduce bureaucracy downsizing – reduce bureaucracy change in leadership, methods, vision change in leadership, methods, vision rewards system rewards system

11. Structural responses to change Structural responses to change Outsourcing: Non core services ie marketing, accounting, parts Outsourcing: Non core services ie marketing, accounting, parts Save labour cost, rent, Save labour cost, rent, fulfil temporary demand for staff ie new IT network or hardware system. fulfil temporary demand for staff ie new IT network or hardware system. Better quality, value for money, specialisation Better quality, value for money, specialisation Flat organisation structures: minimise bureaucracy, cut out middle management increase flexibility, accountability, increasing workload. Flat organisation structures: minimise bureaucracy, cut out middle management increase flexibility, accountability, increasing workload. Strategic alliances and networks: Businesses and suppliers, Businesses and other businesses wanting to access a market so both can gain strategic advantage ie Qantas, BA, Cathay Pacific, American Airlines in One World alliance. Strategic alliances and networks: Businesses and suppliers, Businesses and other businesses wanting to access a market so both can gain strategic advantage ie Qantas, BA, Cathay Pacific, American Airlines in One World alliance.