1. Managing Change Syllabus points: Nature and sources of change Internal and External Structural responses to change

2. If you stop moving you die!

3. Managing Change Change is any alteration in the business and work environment.Change is any alteration in the business and work environment. For example;For example; Change in consumer tasteChange in consumer taste Change in production methodChange in production method Change in markets or products soldChange in markets or products sold Change in how employees perform their tasksChange in how employees perform their tasks

4. External v Internal External are outside the control of the business Internal are within the control of the business Sometimes there is overlap

5. Sources of Change External Changing nature of markets Economic Financial Geographic Social Legal Political Technological Internal Accelerating technology E-commerce New systems and procedures New business cultures

6. External Sources of Change

7. The changing nature of markets Globalisation: is the expansion of the market to the world stage. This more integrated global economic system has altered the shape of the world markets and the nature of businesses that compete in them.This more integrated global economic system has altered the shape of the world markets and the nature of businesses that compete in them. How does Globalisation Affect Australian Businesses?

8. The changing nature of markets Downsizing Casualisation of workforce E-commerce Dominant Retailers

9. External Influences – The Economy The Economic Cycle

11. External Influences – The Economy Information is key Interest Rates Inflation Consumer Confidence Unemployment Data Balance of Payments The picture shows a Zimbabwean carrying pile load of cash to buy something. Seems like a lot of money… but fact is the pile of cash is probably worth less than 100 US dollars.

12. Revision – Books closed What are 3 external influences causing change for business? What are 3 indicators of change in the economy? How does the government slow inflation? How did the government stimulus package affect the cost of borrowing money?

13. External Influences – Financial Markets Deregulation by government – market oriented approach New banks and financial institutions International sources of finance Technology allows for new products

14. Australia’s geographic location in the Asia Pacific Region have provided challenging opportunities for business expansion, sales and profit. Further changes that are affecting Australian business originates from changing demographic factors. Ageing pop and lower birth rates External Influences - Geographical

15. Social Change can incorporate any one or a combination of the following factors; changes in beliefs, business ethics, work attitude, cultural changes, spending habits and population changes.Social Change can incorporate any one or a combination of the following factors; changes in beliefs, business ethics, work attitude, cultural changes, spending habits and population changes. Two social issues leading to significant change in business practice include: -desire to have family-friendly workplace practices -changing makeup of workplaces. External Influences – Social Influences

16. External Influences - Legal Influences Deregulation: is the removal or simplification of government rules and regulations that constrain the operation of market forces. Why is this good for businesses? What is the opposite of deregulation? Regulation Can you think of areas of business that have seen increased regulation?

17. Environmental Consumer protection OH&S Industrial Relations Trade Practices External Influences - Legal Influences

18. External Influences - Political government regulators – ACCC ASIC Political parties have different approaches to managing the economy Tax and areas of Law Floating of the Aus $ (Dec 1983) GST was a huge change in 2000 Free trade – removal of protection Government plays a major role in having a stable economy

19. Increased productivity Improved quality and range of goods Reducing costs Eliminating boring repetitious jobs Increases need for highly skilled labour Emphasis on training External influences- Technological Developments

20. Activities Evaluate the accuracy of the following statement: ‘One of Australia’s main competitive advantages in terms of world trade is its geographic location within the Asia Pacific Region’ Select two demographic influences on business and explain how they lead to opportunities and threats for businesses.

21. Internal Influences Internal Change springs from the desire to develop new and improved ways of doing things. It may be in response to employee requests or the result of constantly striving for higher levels of efficiency and productivity.

22. Internal Influence- Accelerating rate of technological development Many of the businesses operations and functions are affected from the advances in information and communications technology

23. Electronic commerce(e-commerce) Electronic commerce(e-commerce) is the use of electronic communications to do business. It covers all transactions made by electronic methods, including phone, facsimile, and the internet. E-commerce creates new ways of operating by introducing new systems and procedures.

24. New Systems and procedures Many changes to the existing systems and procedures have been brought about by technological development. Some of these include: o New business tools that assist in accessing and analysing information from a variety of sources o The integration of business into the global market. o Improved methods of processing vast amounts of information etc.

25. New Business Culture A business culture is a set of mostly unwritten or informal rules that spell out how people are to behave most of the time. These rules are based on values, ideas, expectations and beliefs shared by members of the organisation. Therefore, any new rules and processes of regulating employees, or by changing the structure of the organisation itself must be carefully managed.