Bus. Found - 2.1.3 Lesson Forces Driving Change

​Forces Driving Change - Case Studies

By Alicia Delande

Forces Driving Change

A force that drives business change is something that makes businesses adjust how they operate, compete, or serve customers.

These forces can come from outside the business (external)—like new laws, technology, or customer preferences—or from inside the business (internal)—like leadership changes or new strategies.

Political Climate

Diversity

Spending Trends

Industry Structure Changes

Globalization

Consumer Demand

Government Policies

Legal/Regulatory Changes

Forces Driving Change

Case Studies

Practice identifying the force driving a business change and explore how the business in the case study changed and if they were successful.

Multiple Choice

Netflix: Shift from DVDs to Streaming

• Globalization

• Industry Structure Changes

• Government Policy

• Diversity

Netflix: Shift from DVD to Streaming

Force: Industry Structure Changes
Business Response: Transitioned from mailing DVDs to launching an online streaming service and later invested in original content.
Successful? Yes — Netflix became the leader in streaming entertainment, while DVD rentals became obsolete.

Multiple Choice

McDonald’s: Adding Healthier Menu Items

• Political Climate

• Diversity

• Consumer Demand

• Legal & Regulatory Changes

McDonald's: Adding Healthier Menu Items

Force: Consumer Demand
Business Response: Introduced salads, fruit options, grilled chicken, and transparency in nutrition labeling.
Successful? Partially — while healthier items didn’t always sell as much as burgers and fries, they improved McDonald’s image and gave customers more options.

Multiple Choice

Tesla: Growth Supported by Government EV Incentives

• Diversity

• Spending Trends

• Globalization

• Government Policy

Tesla: Growth Supported by Government Incentives

Force: Government Policy
Business Response: Expanded production of electric vehicles, took advantage of government subsidies and tax credits, and marketed sustainability.
Successful? Yes — Tesla became a leading EV company, though critics note its reliance on subsidies in early years.

Multiple Choice

Nike: Global Supply Chain & Labor Concerns

• Political Climate

• Legal/Regulatory Changes

• Consumer Demand

• Spending Trends

Nike: Global Supply Chain and Labor Concerns

Force: Legal/Regulatory Changes
Changes Business Response: Faced backlash over sweatshop labor, so Nike improved factory monitoring, set labor standards, and promoted social responsibility campaigns.
Successful? Over time Nike’s brand recovered, and it remains one of the top athletic brands globally, though labor issues still surface.

Multiple Choice

Target: Expanding Affordable Fashion Lines

• Spending Trends

• Political Climate

• Globalization

• Government Policy

Target: Expanding Affordable Fashion Lines

Force: Spending Trends
Business Response: Partnered with designers to create low-cost, stylish clothing lines appealing to budget-conscious shoppers.
Successful? Yes — Target improved its brand image and boosted sales by blending affordability with trendiness.

Multiple Choice

U.S.–China Trade Tariff Impact on Apple

• Consumer Demand

• Political Climate

• Diversity

• Globalization

U.S - China Trade Tariff Impact on Apple

Force: Political Climate
Business Response: When tariffs were placed on Chinese imports, Apple faced rising production costs. The company responded by lobbying U.S. officials for tariff relief.
Successful? Apple avoided some tariff costs, but relies heavily on China and remains vulnerable to future political tensions.

Wrap Up

Businesses must stay flexible and pay attention to these forces to survive and succeed.

Change is not optional—it’s a constant part of doing business.