Major Causes of Business Change

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  • Major causes of change
    • Technological Advances in New Products and New Processes
      • Managing Change
        • need for labour retraining
        • purchase of new equipment
        • additions to product portfolio and other products to be dropped
        • need for quicker product development, which may need new organisational structures and teams
    • Competitors' Actions
      • Examples of Change
        • lower prices based on higher competitiveness / lower costs
        • new products
        • higher promotion budgets
      • Managing Change
        • encourage new ideas from employees
        • if employees accept the need for change then they will accept the change itself
        • ensure resources are available to meet the challenge
    • Legal Changes
      • Managing Change
        • Employee training on company policy (e.g. selling certain goods to children
        • flexible working hours and practices
      • Examples of Change
        • changes to what can be sold or when
          • e.g. 24hr licences for restaurants
    • Macroeconomic Change: Fiscal Policy, Interest rates, Fluctuations in the business cycle
      • Examples of Change
        • changes in consumers' disposable incomes and demand patterns that result from this
        • boom or recession conditions which require either extra capacity or rationalisation
      • Managing Change
        • need for flexible production systems (including staff flexibility) to cope with demand changes
        • explain need for extra capacity or the need to rationalise
        • deal with redundancies in ways that encourage workers who remain to accept change
  • Examples of Change
    • Products
      • new computer games
      • AI and machine learning
      • hydrogen-powered cars
    • Technological Advances in New Products and New Processes
      • Managing Change
        • need for labour retraining
        • purchase of new equipment
        • additions to product portfolio and other products to be dropped
        • need for quicker product development, which may need new organisational structures and teams

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