Business and Administration Unit 4

600 Words3 Pages
Section 1 – Understand why change happens in a business environment 1. Explain why change happens in a business environment. You should include at least three reasons in your answer. Change can occur in a business environment for a variety of reasons, and those changes can be reactive, when a business responds to external pressures, and proactive, when a business changes due to internal demands. When considering change it is helpful to use the PEST acronym. A political example is the introduction of new legislation. Economic examples are economic conditions, such as booms or recessions, and competition from abroad. Social examples are changes in the market which affect consumer demand, and changes in consumer preferences. A technological example is the introduction of new technology. Proactive changes come from within a business. Examples of proactive change include the introduction of new business activities, a drive to save money in certain areas, a need to reduce the number of staff, a change in the way business functions are organised, and to acquire new staff with specialist professional skills and expertise which the business needs but currently does not have. Section 2 – Understand the purpose of supporting change in a business environment 1. Identify the main reasons for reviewing working methods, products and / or services in a business environment. Reasons for reviewing working methods, products or services may include: * identifying anything that is not working * providing the opportunity to improve * reviewing products ensures that they are still fit for purpose * reviewing services ensures that what is being offered is competitive and what the customer wants. 2. When a business is going through change: a) Describe the different types of support that people may need. Types of support that people may need during change
Open Document