Principles of Supporting Change in a Business Environment

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Unit four: Principles of supporting change in a business environment Assessment You should use this file to complete your Assessment. • The first thing you need to do is save a copy of this document, either onto your computer or a disk • Then work through your Assessment, remembering to save your work regularly • When you’ve finished, print out a copy to keep for reference • Then, go to and send your completed Assessment to your tutor via your My Study area – make sure it is clearly marked with your name, the course title and the Unit and Assessment number. Please note that this Assessment document has 3 pages and is made up of 3 Sections. Name: 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 happens in a business environment for several reasons that can be explained with the PEST acronym. This highlights the four main influences on a business. Political: Government policies or regulations, International conflict or trade policies, Domestic legislation and law. Economic: Domestic competitors and trends, International economy and interest rates. Social: Consumer attitudes and preference, Ethical issues and media views. Technological: Funding for new technologies and development, Installation of new technology and emerging new technologies. 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.
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