Transcript Managing Change

Managing Change
Change in business is concerned with altering
the way people do their work. It involves
changing structures and introducing new
technology to produce different outcomes.
 Business must respond to change if they are to
maintain a competitive advantage.
 Changes include: production, marketing, the
business plan, objectives and goals.
 Changes are external (outside the business) or
internal (inside the business)
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External Influences
 The
changing nature of markets
 constantly
changing, reflecting changing
needs, wants, fashions, technology,
population and concepts of quality.
Also other countries trade policies,
patterns of demand, competition,
exchange rates and weather.
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Economic Influences
 economic
cycles, employment, inflation,
consumption, investment.
 the labour force, wages and prices
 govt policies, such as microeconomic reform
 international economic environment,
infrustructure, transport and power
 Financial
Influences:
 Deregulation
of financial system:
removal of Govt restrictions
 Increasing range of financial
products and increased competition
of financial institutions.
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Geographic influences:
Population (movements, increases, decreases)
 Availability of natural resources, climate, water
 Aust’s geographic isolation, Aust businesses
expanding O/S
 proximity to suppliers, competitors, customers
 changes in landscape (new roads)
 Industry clusters (businesses with linking
relationships setting up in close proximity) –
outsourcing of duties in production process to 3rd
parties.
 Act of God – Natural disasters
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Social Influences
Ageing population (nursing homes, health services)
 Changing role of women in workplace
 growth of leisure and health activities (day spas,
gyms)
 > diversity in population, new opportunities for
retailers.
 Trend towards retirement
 Unpopular business decisions, environment record
 Revelations of exploitation or corruption
 Stereotyping, racism, sexism
 General changes in social attitudes
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Legal Influences
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Govt legislation, Fed and state, regulatory bodies, govt
bodies, GST, BAS, ACCC
Competition regulation, health and safety, consumer
protection, licensing, taxation, credit
Legal made by courts – precedents for other cases eg public
liability costs
Political Influences
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Each party has its own objectives for businesses, they create
legislation and policies that have impact.
Managers need to plan for outcomes of change in
government
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Technological Developments
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technology changes influencing:
production methods
 information exchanging
 agriculture and mining
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Lowering costs of production
 reducing lead time
 reducing barriers of distance, suppliers and
customers
 Creating competitive advantages
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Internal Influences
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Effects of accelerating Technology:
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E-commerce: Buying and selling of products, funds transfer,
electronic support for products / services.
New systems and procedures:
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Reorganising employees into work teams to gain productivity
and creativity benefits
Using Total Quality Management principles to emphasise
quality and continuous improvement
Worlds best practice, benchmarking
Computer systems and techniques, CAD, CAM, stock, POS
Changes to practices such as petty cash, rostering
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New Business Cultures:
Refers to shared attitudes, values, beliefs of people.
The way people in a business behave.
 Modern communication methods ie email
 downsizing – reduce bureaucracy
 change in leadership, methods, vision
 rewards system
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Structural responses to change
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Outsourcing: Non core services ie marketing, accounting,
parts
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Save labour cost, rent,
fulfil temporary demand for staff ie new IT network or hardware
system.
Better quality, value for money, specialisation
Flat organisation structures: minimise bureaucracy, cut out
middle management increase flexibility, accountability,
increasing workload.
Strategic alliances and networks: Businesses and suppliers,
Businesses and other businesses wanting to access a market
so both can gain strategic advantage ie Qantas, BA, Cathay
Pacific, American Airlines in One World alliance.