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BUSS4 ­ Change
INTERNAL CAUSES OF CHANGE
3 main internal causes of change are:
Organisational Size
New Leaders/Owners
Poor performance
CHANGES IN ORGANISATIONAL SIZE
Growth is seen as natural development for a company. It provides benefits and
risks, but it enables companies to survive or make profits, by taking advantage…

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But it can be risky, due to the problems of integrating two separate organisations
Reasons for Takeover:
Companies entering a new market may not have the necessary expertise
Speed of growth is a high priority
Brands are expensive to develop in terms of time and money
Exploit any patents owned…

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Managing Structures and hierarchies ­ Firms may alter their structure to
change the span of control so that new authority and departments are
created.
More delegation ­ Original owners will take on more of a managing/leading
role. Professionals will be recruited to take on growing specialist
responsibilities. An effective management…

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The drawbacks of floatation are that the company is answerable to shareholders, and
investment analysis will scrutinise the company. Often shareholders are only interested
in short term, quick profits, therefore the companies are under pressure to generate
record profit levels year on year.
From Public to Private Limited Company
The…

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Internal Environment ­ Review different functional areas, to review how
successful it has been and the key resources it needs. This will allow the
business to take advantage of opportunities.
External Environment ­ Makes use of PESTLE analysis and Porters Five Forces
SWOT Analysis ­ Strengths, Weaknesses, Opportunities and Threats.…

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Finance ­ Immediate cash expenditure
Operations ­ Customers' needs still need to be met, just in time
Human resources ­ direct leadership to make quick decisions. Communication
must be direct and quick. External communication should be truthful and
controlled.
Costs
Can involve high numbers of highly qualified staff
Like all…

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Improved morale but slow
Where does the management lie? Who has control?
Laissez-Faire
Leaders take a hands off approach ­ minimal input
Leaves the running of the business to the staff
Delegation lacks focus and coordination
Failure to provide a successful framework
Freedom for staff ­ creative, show initiative
Insecure,…

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INFLUENCES ON CHANGE: CULTURE
Organisational Culture ­ "Unwritten code that affects the attitudes and behaviour of
staff, approaches to decision making and the leadership style of the management"

Types of Organisational Culture
Allows firms to differentiate, have a sense of identity, how to behave and help
everyone interpret and understand…

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Not always possible to collect every piece of information
Organisational rules, culture and attitudes might prevent optimal decision
making being made anyway



Different approaches to Decision Making
Decision making in any business is very important, and includes elements of risk.
Careful analysis of the balance of risk and reward should…

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Predictability ­ Hunch may be best in an unpredictable situation
Character of the person/culture- A risk taker is more likely to make hunches

Decision Trees

Decision trees work out the probability of different consequences and the
financial outcomes estimated. Calculations can be made to determine the best
option for the…

Comments

oli rebeiro

This is the best information i have seen on these topics all day!  I rate it 5/5. Thanks for the help Mr Mannix

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