Managing Change; Unit 4 - Notes

Notes made from a combination of resources including the Malcolm Surridge text book and Philip Allan revision guide.

Covers the 'manaing change' third of the course; Introduction to Change, Interal Causes of Change, Planning for Change, Leadership, Culture, Strategic Decisions and Implementing and Managing Chnage

Word Document 40.66 Kb

Pages in this set

Page 1

Preview of page 1
Introduction to Change
Firms will experience new laws, taxes, changes in `customers' tastes, changes in technology, changes
in staff and changes in the activities of the competitors.

External Change:
"It happens to you"
Change is happening all the time in the external environment and the job as a manager is…

Page 2

Preview of page 2
Changes in Organisational Size:
Internal change can occur as a result of the challenges and opportunities of growth
Owners want the firm to grow cause they:
May benefit from economies of scale
Have more power over their markets
Will be safer from takeover
Will have more status
Internal growth occurs…

Page 3

Preview of page 3
Types of Integration:
One firm joins with another at the same stage of the same production process
Allows for greater market share
Achieves economies of scale
Opportunity to enter a different market segment

One firm joins with another at a different stage of the same production process

Page 4

Preview of page 4
Welcomed: the firm will give information
Hostile: the firm will have no inside knowledge

Going International:
Firms can also grow by expanding overseas
It provides new marketing opportunities when further expansion in the domestic market may be
The decision to sell overseas can be a difficult one to take…

Page 5

Preview of page 5
There will be times when the managers decide to shrink the firm
Because of lack of demand / problems controlling large scale firm
When managers withdraw from a market
Sale of different divisions
May pull out of a market:
Demand no longer exists
Cannot manage of…

Page 6

Preview of page 6
For change to occur there must be greater pressure for change of the resistance to change needs to
Greater pressure to bring about change is often caused by poor performance as managers want to
do something about it; it can also help employees understand why the change is necessary…

Page 7

Preview of page 7
Planning for Change
A corporate plan sets out what the firm as whole is trying to achieve and how it intends to achieve
Corporate objective
Corporate strategies
These must be turned into specific objectives for each function

SWOT Analysis:
Strengths and weaknesses of a firm are internal and relate…

Page 8

Preview of page 8
Opportunities and threats facing the firm are external and in the future
Managers will consider:
How to build on its strengths (Internal Audit)
How to exploit its opportunities (Internal Audit)
How to protect itself against threats (External Audit)
How to protect itself from its weaknesses (External Audit)

Value of Corporate…

Page 9

Preview of page 9
Understanding the overall strategy and objectives and know your resources so they can make the
right decisions at any moment

Contingency Planning:
This type of planning occurs when a firm prepares for unlikely events
Plans might include:
Using 2 supplies for the same part or component
Paying a fee to…

Page 10

Preview of page 10
Leaders and Managers:
A leader is someone who has followers who want to follow their direction
A manager is someone who has been appointed to run the /part of the firm
"leadership and management are two distinctive and complementary systems of
action...both are necessary for success"
A manager…




This is a comprehensive (23 page) document which fully covers the reasons for change and how to manage it. Suitable for unit 4 and can be used as the main notes but will need to be adapted for revision purposes.

Similar Business Studies resources:

See all Business Studies resources »