These changes are known as a reactive change and occur when a business responds to external pressure. Proactive changes happen when a business changes due to internal demands or a desire to improve the business. Some typical examples of proactive changes are, The business decides to cut waste, reduce costs or change customer support hours or less dramatic actions such as a new software upgrade or new furniture.
Select the TCO your essay question will cover: TCO A - Given that progressive and successful companies require their employees to embrace change, examine how changing work conditions impact the employees. Changing work conditions should not be looked at simply in economic terms. It is an employer-employee relationship that has to be managed properly in order for an organization to evolve. It’s inevitable that organizations need to change and adapt if they want to keep pace with competitors in their industry. Change is usually driven by internal and external factors, some of which leaders in an organization have limited control over.
Learning objective | Place in Assessment | 1.1 Explain reasons for change in a business environment | Question 1 Page 1 | 1. Explain why change happens in a business environment. You should include at least three reasons in your answer. [1.1] Change happens in a number of different ways either reactively or proactively or internally or externally. Reactive change occurs due to outside pressures on the business these may include a perceived threat to the company or a new opportunity arises out of the blue.
Explain why change happens in a business environment. You should include at least three reasons in your answer. Economy is a big factor in change in a business, some reasons for this are as follows: • Competitors behaviour, performance and trends. • Tax and Interest rates • International competitors' behaviour, economy, economic trends, tax, interest rates, exchange rates and trade issues • Product changes 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.
Introduction The purpose of this assignment is to firstly identify why there is a need to implement changes within an organisation and highlight any barriers that an organisation may encounter when implementing any changes before explaining how to overcome these barrier. It will also describe what techniques can be used to plan, monitor and review any potential changes. Finally the report will also consider the effects of change of the workforce within the organisation and why communication is vital before, during and after any changes. To help demonstrate different points and techniques I will refer to a specific example of innovation and change within a company which is planning on implementing a machine which is an automatic packaging system instead of a manual based packing system. Benefits of Innovation and Change To fully understand the benefits of innovation and change, we must first understand what innovation and change actually are.
So when people change their value (system) the old (economic) system will tumble over to make room for the new one. When that happens innovation has occurred. The Methodology of the Strategic Innovation Process The strategy innovation process is a method for creating innovative, new opportunities that could become the basis for a new strategic direction for a corporation. Strategic Innovation is a series of phases, not a linear series of steps by carrying out the phases, the company can avoid some of the process pitfalls that arise when doing cross functional work at the strategic level. The specific steps to be taken within each phase must be determined by each company individually.
By identifying its strengths, a company will be better able to think of strategies to take advantage of new opportunities. By identifying current weaknesses and threats, a company will be able to identify changes that need to be made to improve and protect the value of its current operations. Criticisms SWOT analysis has two clear weaknesses. Firstly, using SWOT may tend to persuade companies to write lists of Pros and Cons, rather than think about what needs to be done to achieve objectives. Secondly, there is the risk that the resulting lists will be used uncritically and without clear prioritization.
Earlier, the managers adopted the day-to-day planning method without concentrating on the future work. Later the managers tried to predict the future events using control system and budgets. These techniques could not calculate the future happenings accurately. Thus, an effective technique called strategy was introduced in business to deal with long term developments and new methods of production. The different concepts of strategy are: • It is defined as a plan to direct or guide a course of action • It is a pattern to improve the performance over time • It is a fundamental way to view an organisation’s performance • It is a scheme to out-maneuver competitor Difference between Goals and Objectives of Business Goals are statements that provide an overview about what the project should achieve.
Strategic Controls and Contingency Plans Strategic Controls and Contingency Plans Strategic control is involved with tracking the strategy during implementation, detecting any problems or possible problem areas, and making any necessary adjustments. The implementation of a strategy is long-termed and consists of a series of steps and activities (Adams, 2013). A control point within a scheduled project are key review points and allow the project manager to make important decisions regarding the project. Contingency plans augment strategic controls and afford a business an alternative plan to keep operating if an unexpected event should occur that would interfere with business activities. Contingency plans typically are developed during the analysis of the strengths and weaknesses of a proposed business strategy (Adams, 2013).
Explain. According to the text information, what are the disadvantages associated with using a group for decision-making? Discuss how the leaders of Wallingford could most effectively combat these disadvantages. 4. The case discusses various methods the owners have applied in attempting to resolve the company’s problems.