Change

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Causes of Change in a Business

Business change occurs when any process, system or structure within the business is changing.

Organisational size

An organisation changing size is an example of business change.
A business may have to shrink and make people redundant if revenues are lower than expected.
If a business is growing, then the organisation may need to hire more people and change its recruitment processes.

Poor business performance

Poor business performance can result in business change as leaders are likely to introduce measures to reduce cost which may include restructuring and redundancy.

New ownership

New ownership can result in business change if leaders have a different vision to previous owners.
For example, Palmer Luckey, who founded Oculus VR was fired shortly after joining Facebook (after it bought Oculus).

Transformational leadership

Transformational leadership can result in business change as employees are given opportunities to suggest changes and these may be implemented by managers and leaders.

The external environment

The external environment (PESTLE) may result in business changes as businesses must respond to internal and external changes to maintain competitiveness.
- For example, technological advances are part of the external environment and many supermarkets have introduced self-checkouts to take advantage of this technology.
- In many cases, the introduction of technology has resulted in reducing staffing and making redundancies.

Impact of Change

Business change can impact several aspects of a business:

Competitiveness

Business change can impact a business' competitiveness.
Any change which results in lowering unit costs can allow the business to reduce its selling price.

Productivity

Business change can impact productivity if the change involves replacing human labour with technology.
Car manufacturers replaced lots of workers on their assembly line with robots made by businesses like KUKA.

Financial performance

Business change can impact financial performance as change which results in lowering costs can improve profitability.

Stakeholders

Business change can impact stakeholders as employees may become concerned about their job security although shareholders may see increased dividends if profitability increases.

1Exploring Business

2Marketing Campaigns

2.1Marketing

2.1.1Setting Marketing Objectives

2.1.2Customer Needs

2.1.3The Market

2.1.4Competition & The Market

2.1.5Consumer Behaviour

2.1.6Market Research

2.1.7Forms of Market Research

2.1.8Market Segmentation

2.1.9Cultural & Social Factors in Marketing

2.1.10Promotional Decisions 3

2.1.11Pricing Strategies

2.2Marketing Mix

2.2.1Marketing Mix

2.2.2Product Life Cycle

2.2.3Pricing Decisions & Price Skimming

2.2.4Pricing Decisions & Price Penetration

2.2.5Promotional Decisions

2.2.6Promotional Decisions 2

2.2.7Promotional Decisions 3

2.2.8Market Mapping

3Business Finance

3.1Sources of Finance

3.1.1Internal Finance

3.1.2External Finance

3.1.3External Finance 2

3.1.4Sources of Business Finance

3.2Financial Planning

3.2.1Revenue

3.2.2Costs

3.2.3Cash & Cash Flow

3.2.4Cash & Cash Flow 2

3.2.5Break-Even Analysis

3.2.6Profits

3.3Financial Statements

3.3.1Balance Sheets

3.3.2Income Statements

3.3.3Liquidity

4International Business

4.1Globalisation

4.1.1Growing Economies

4.1.2Specialisation & Trade

4.2International Business

4.2.1Internationalisation

4.2.2International Trade

4.2.3MNCS

4.2.4Conditions that Prompt Trade

4.2.5Assessment of a Country

4.3International Economic Environment

4.3.1Globalisation

4.3.2Factors Contributing to Globalisation

4.3.3Protectionism

4.3.4The EU & the WTO

4.3.5Trading Blocs

4.4Factors Affecting International Business

4.4.1Global Competitiveness

4.4.2Ethics of Global Business

4.4.3Controlling MNCs

4.4.4Cultural & Social Factors in Marketing

5Principles of Management

5.1Management & Leadership

5.1.1Managers

5.1.2Management Theories

5.1.3Managing Organisational Culture

5.1.4Management Style

5.2Theories of Motivation

5.2.1Motivating & Engaging Employees

5.2.2Taylor's Theory

5.2.3Mayo's Theory

5.2.4Maslow's Theory

5.2.5Herzberg's Theory

5.3Managing Change

5.3.1Change

5.3.2Key Factors in Change

5.3.3Scenario Planning

5.3.4Managing Change

5.3.5Managing Strategic Implementation

6Business Decision Making

6.1Business Principles & Practices

6.1.1Influences in External Environments

6.1.2Product Decisions

6.1.3Competitive Environment

6.1.4Corporate Strategy

6.1.5Quantitative Sales Forecasting

6.1.6Legislation

6.2Quality Management

6.2.1Importance of Quality

6.2.2Measuring Quality

6.2.3Total Quality Management

6.2.4Evaluating TQM

6.3Human Resources

6.3.1Contracts

6.3.2Recruitment

6.3.3Training a Workforce

6.4Documents & Business Decisions

6.4.1Sales Forecasts

6.4.2Managing Strategic Implementation

6.4.3Problems with Strategy

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