Chap 4.2: Business Change Concepts

Front

Define BUSINESS CHANGE

Back

Business change is the alteration of behaviours, policies, and practices of a business.

Front

2 approaches to change ?

Back

- PROACTIVE approach to change
- REACTIVE approach to change

Front

PROACTIVE approach to change

Back

A proactive approach involves planning and implementing changes before a business is affected by external pressures, allowing for competitive advantage and preparedness.

Front

REACTIVE approach to change

Back

A reactive approach occurs when changes are unplanned and happen after a business is affected by external pressures, often leading to reduced productivity or sales.

Front

Describe PROACTIVE approach to change

Back

- A proactive approach to change involves planning and implementing changes before external pressures force them upon the business.

- EXPLAIN:

• • Competitive Advantage: By anticipating and adapting to change proactively, businesses can gain a significant edge over competitors who are simply reacting to external forces.
  

• • Reduced Negative Impact: Proactive measures minimize the disruption and negative consequences that often accompany sudden, unplanned changes.
  

• • Improved Preparedness: By anticipating potential changes, businesses can develop strategies and plans to effectively navigate the transition, ensuring minimal disruption to operations.

Front

Describe REACTIVE approach to change

Back

-A reactive approach to change occurs when a business is forced to adapt to changes in its environment after they have already occurred.

- EXPLAIN:

• • Reduced Effectiveness: Reacting to change after it's already impacted the business is less effective. The business has already suffered potential losses in productivity or sales due to its failure to anticipate the change.
  

• • Limited Time for Recovery: The delayed response leaves the business with less time to recover from the impact of the change, potentially hindering its ability to regain its competitive position.

Front

Similarities between PROACTIVE and REACTIVE approaches

Back

• Both approaches are utilised by a manager or business to implement change

• Both approaches involve the business undertaking change for future benefits (e.g: growth, progression, improve brand image)

• Both approaches require the support of the manager, who must utilise management and leadership skills if the change is to be implemented successfully

• Both approaches can be used to respond to stakeholder conflicts