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Internal Causes of Change
The three main internal causes of change are changes in organisational size, new
leaders/owners, and poor business performance.

Changes in Organisational Size
Growth is usually seen as a natural development for a company. It can provide benefits and
opportunities for a business and for its stakeholders.…

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Where one firm buys a majority shareholding in another firm and therefore assumes
full management control
Along with mergers, takeovers are usually the fastest way to achieve growth, however it can
be risky due to the problems of integrating two separate organisations.
Reasons for Takeover
Large company entering a new…

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Managing Growth
Growth is a difficult process to manage for medium sized business, especially if it is rapid.
This often means owners, who have been in complete control of all aspects of a business,
have to plan for, and then adjust to, handing over responsibility to others. In comparison,
the…

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Management buyouts (MBO) are where the managers of a business buy out the
existing shareholders in order to gain ownership and control of the business or
part of the business

Finance for Buyouts:
Finances for buyouts can come from managers' personal funds, bank loads and investment
funds obtained by selling…

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This usually means floating stocks on the stock market. Companies join the stock market all
the time, the more optimistic the economic climate, the more new issues of shares there
are. The value of a stock market listing is that a company has high profile and access to a
large…

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Planning for Change
Corporate Plan
Strategy detailing how a firm's aims and objectives will be achieved,
comprising both medium and long term actions


The mission statement, corporate aims and corporate objectives of a company dictate the
future direction of the business. The corporate plan attempts to achieve these aims and…

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Corporate Planning Process
The corporate planning process involves the following stages

Mission statement. This stage sets out the purpose of the organisation and its
corporate aims
Objectives. This stage breaks down the corporate aims and indicates how they can be
achieved in terms of functional objectives

To produce a plan…

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SWOT analysis is a technique that allows an organisation to assess its overall position, or the
position of one of its divisions, products of activities. It uses an internal audit to assess its
strengths and weakness, and an external audit to assess its opportunities and threats. It
gives a structured…

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Preparing for unexpected and usually unwelcome events that are reasonably
predictable and quantifiable

In a business context, a crisis is any unexpected event that threatens the well-being or
survival of a firm. It is possible to distinguish between two types of crisis; those that are
fairly predictable and quantifiable, and…

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Influences on Change: Leadership
Leadership
- Deciding on a direction for a company in relation to its objectives, and inspiring staff to
achieve those objectives

Management
- Getting things done by organising other people to do it

Both leaders and managers are required for effective corporate growth. Risks taken by…

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