Font size
WorksheetsA-Level Business: Causes & Effects of Change (Sections 1–2)
Total questions: 92
Worksheet time: 46mins
Which of the following is NOT listed as a cause of change by Edexcel?
Changes in organisational size
Poor business performance
Transformational leadership
Changes in supplier relationships
A business expands internationally. Which cause of change does this represent?
Poor business performance
Changes in organisational size
New ownership
Market deregulation
Poor business performance may result in which of the following?
Increased profits automatically
New objectives and strategies to compete
No change necessary
Expansion into new markets
Which of these would be an issue faced by a business experiencing poor performance?
Excessive profits
Over-staffing with no redundancies
Possible delayering or redundancies
No need for new strategies
New ownership through a merger may create which of the following challenges?
Guaranteed immediate profit
Role duplication and possible redundancies
Elimination of all culture differences
Automatic business improvement
Transformational leadership is most likely to result in:
No change whatsoever
Maintaining the old culture indefinitely
Reinventing the business to achieve competitive advantage
Reducing employee involvement
A transformational leader would encourage:
Resistance to new ideas
Development of new ideas and new ways of thinking
Maintenance of outdated methods
Reduced innovation
External factors influencing change include which of the following?
PESTLE factors
Porter's Five Forces
New market entrants
All of the above
A business responds to market change by:
Ignoring new competition
Increasing R&D budget for innovative products
Reducing product range
Cutting employee training
Which cause of change is primarily external?
Changes in organisational size
Poor business performance
The market and other external factors (PESTLE)
New ownership
Energy market deregulation is an example of which cause of change?
New ownership
Transformational leadership
Market and external factors (PESTLE)
Poor business performance
When a business experiences growth internationally, which of the following becomes a key concern?
Reduced motivation
Maintaining company culture
Automatic cultural unity
No training needed
A management buyout represents which cause of change?
Poor business performance
Changes in organisational size
New ownership
Transformational leadership
What is the primary outcome when a business needs new objectives due to poor performance?
Guaranteed success
Implementation of new competitive strategies
No strategic change required
Reduction in business direction
Which leadership approach actively seeks to change an organisation?
Traditional leadership
Transformational leadership
Passive leadership
Static leadership
Effects of change on a business include all of the following EXCEPT:
Competitiveness
Productivity
Guaranteed profit increase
Financial performance
How might competitiveness be affected by change?
Automatically decreases
Requires investment in R&D and innovation
Needs no management attention
Always improves without effort
To maintain competitiveness during change, a business should:
Ignore competitor actions
Benchmark with similar businesses
Reduce product innovation
Avoid new markets
Productivity may be affected by change through:
Maintaining old equipment indefinitely
Investing in new machinery and equipment
Reducing employee training
No operational changes
Which production method change would affect productivity?
Ignoring efficiency measures
Changing from batch production to flow production
Reducing quality management
Avoiding automation
Financial performance during change may require:
Ignoring cash flow projections
New cash flow forecasts
Eliminating financial planning
No budget adjustments
How might the marketing function be impacted by organisational change?
No changes to marketing strategy
New pricing, place, product, and promotion strategies
Elimination of marketing department
Static market approach
How might the finance function be impacted during change?
No need for adjusted budgets
Need to find new ways to raise capital
Elimination of financial planning
No spending adjustments
Which internal stakeholder may be most concerned during organisational change?
Customers always
Employees worried about job security
Suppliers only
Government exclusively
How might employees view change in terms of future prospects?
Always positively
May feel unsure about promotion prospects
With complete confidence
No concern whatsoever
External stakeholders affected by change include:
Shareholders concerned about costs
Customers delighted with new products
Suppliers renegotiating contracts
All of the above
What effect might change have on shareholder concerns?
No impact on profit
Concerned that changes will negatively impact profit
Automatic profit increase
No financial considerations
Customers' potential positive response to change includes:
Rejecting new products
Delight with new range and improved quality
No reaction to changes
Switching to competitors
During change, suppliers may:
Maintain old contract terms indefinitely
Renegotiate contracts with more favourable terms
Reduce business relationships
Avoid communication
Quality management changes during transformation may include:
Eliminating all quality measures
Changing from Quality Control to TQM
Reducing quality standards
No quality adjustments
According to Handy, organisational culture is best described as:
Just a policy manual
"The way we do things round here"
Irrelevant to business
Only for large corporations
Successful change requires:
Ignoring existing norms
Redefining norms and values and getting worker commitment
Imposing change without consultation
No cultural consideration
What is the primary challenge when introducing a new uniform?
Always accepted immediately
Resistance due to changing cultural norms
No employee concerns
Guaranteed positive response
Organisational culture is influenced by:
Only senior management
Existing values and norms of all employees
External market forces only
No internal factors
People tend to adhere to:
No particular patterns
Cultural norms and values
Random work practices
Individual preferences only
A family-run business transitioning to a PLC must address:
No cultural changes
Significant cultural transformation
Maintaining complete isolation from market
No stakeholder involvement
Cultural change when merging two companies may result in:
Automatic unity
Clash of cultures between organisations
No cultural differences
Elimination of one culture immediately
Which statement about organisational culture is correct?
Can be changed instantly
Is formed through shared values and practices
Has no impact on business performance
Is independent of employee behaviour
How is corporate culture typically formed?
Imposed from external consultants only
Through shared values, traditions, and how work is conducted
Through policy documents alone
Without employee input
A business attempting to redefine its culture should:
Force changes without discussion
Get commitment from workers to new values
Ignore employee concerns
Make no consultation efforts
Why might cultural change be difficult in established organisations?
No resistance ever occurs
Employees are comfortable with existing norms
Culture changes automatically
No time required for adjustment
The Tesco uniform case study illustrates:
Automatic employee approval
Resistance to cultural/symbolic changes
No employee impact from uniforms
Universal positive response
To successfully implement cultural change, a business should:
Mandate without explanation
Involve employees and explain rationale
Ignore feedback
Force compliance
Organisational culture directly influences:
Only profit margins
Employee motivation and performance
External markets exclusively
Nothing measurable
A strong organisational culture provides:
No direction for employees
Clear values and direction for how work is done
Rigidity that prevents change
No competitive advantage
When a business grows from Ltd to PLC, it must:
Maintain the same structure
Undergo huge organisational changes
Avoid raising finance
Eliminate shareholder involvement
Floating on the stock market requires:
No structural changes
Appoint a suitably qualified company secretary
Maintain private company status
No additional requirements
A PLC's regulatory requirement includes:
No formal meetings required
Holding an annual general meeting
Avoiding shareholder communication
No stakeholder accountability
Managers transitioning to a PLC may experience:
Increased control
Potential loss of control and possible replacement
No change in authority
Expanded private decision-making
Growing organisations must manage:
Reduced complexity
Increased media attention and public relations
Decreased stakeholder interest
No external pressure
What is a key challenge when organisational size increases?
Simplified management
Maintaining control and communication
Reduced complexity
No coordination issues
Moving from private to public company status affects:
Only profit figures
Governance, transparency, and stakeholder communication
Nothing structurally
Only external markets
A growing business may need to implement:
Simpler systems
More formal organisational structures
Fewer management layers
Reduced reporting requirements
The McLaren Group considering a stock market float represents:
No organisational change
Significant structural and governance changes
Simplified operations
Reduced stakeholder involvement
Organisational size changes often necessitate:
Eliminating HR functions
Restructuring of departments and roles
No operational adjustments
Reduction of management layers only
What is the main problem with overly rapid change?
Creates no employee stress
Misalignment between expectations and reality
Too much planning time
Insufficient urgency
Employees experiencing rapid change may complain:
"Change is too slow"
"I can't keep up with all the changes"
"Nothing ever changes"
"We need faster modifications"
Kaizen philosophy promotes:
Rapid revolutionary change
Continuous small incremental improvements
No improvement processes
Annual dramatic restructuring
In a kaizen organisation, improvements are:
Annual events only
Possibly daily occurrences
Avoided
Made by management alone
Which statement best describes kaizen timing?
Long-term revolutionary change
Long-term gradual continuous improvement
Short-term isolated changes
No structured approach
Kaizen management commitment requires:
Ignoring quality data
Using good quality data to make decisions
Making decisions without evidence
Avoiding improvement processes
The traditional approach to change differs from kaizen in:
No way
Speed and approach (fire fighting vs. continuous improvement)
Organisational structure
Profit focus only
Managing change speed involves:
Imposing changes as quickly as possible
Designing flexibility to give employees time to adapt
No consultation with staff
Ignoring adjustment periods
Rapid change without employee adjustment time may result in:
Improved morale
Increased stress and dissatisfaction
Enhanced productivity
No psychological impact
A gradual change approach compared to rapid change:
Creates more confusion
Allows employees time to develop new skills
Reduces stakeholder input
Increases uncertainty
Resistance to change is best defined as:
Always irrational
Behaviour intended to protect an individual from real or imagined effects
Only from senior staff
Easily ignored
Employees may resist change due to:
Excessive rewards
Fear of personal failure or loss of status
Improved working conditions
Increased job security
Resistance to change can be managed by:
Forcing compliance
Working with employees and listening to concerns
Ignoring employee worries
Making unilateral decisions
Which approach helps reduce resistance?
Minimising communication
Delivering training programs
Reducing employee involvement
Avoiding consultation
Focusing on positive aspects of change helps because:
Eliminates all concerns
Employees see benefits in the change
No adjustment needed
No negative impacts exist
Involving employees in change implementation:
Wastes time and resources
Reduces resistance and increases commitment
Complicates the process
Creates only problems
Flexibility in change design:
Shows weakness in management
Gives employees time to adapt
Indicates lack of direction
Prevents successful implementation
The cleaning company that involved cleaners in uniform redesign:
Ignored employee input
Received approval for trousers instead of skirts
Imposed the original design
Created conflict among staff
Listening to employee concerns about change:
Shows indecision
Helps understand and address resistance
Indicates weak leadership
Complicates implementation
Labour productivity is calculated as:
Total output × Number of workers
Total output ÷ Number of workers
Number of workers ÷ Total output
Total costs ÷ Number of workers
Productivity measures:
Total wages paid
Efficiency of the workforce
Total revenue only
Customer satisfaction
A business seeks to increase productivity to:
Reduce worker motivation
Reduce average cost per unit
Increase labour costs
Decrease output
Labour productivity can be improved through:
Kaizen, TQM, and lean production
Reducing worker training
Ignoring efficiency
A only
If 50 workers produce 10,000 items daily, labour productivity is:
50 items per worker
200 items per worker
500 items per worker
10,000 items per worker
When comparing companies for productivity efficiency:
Look at total output only
Compare output per worker (productivity rate)
Consider company size only
Ignore workforce numbers
Lean production contributes to productivity improvement by:
Adding complexity
Eliminating waste and improving efficiency
Increasing labour costs
Reducing output
TQM contributes to productivity by:
Reducing quality standards
Improving processes and reducing defects
Increasing waste
Slowing production
Labour turnover measures:
Total employees employed
Rate at which employees leave in a year
Wages paid annually
Profit per employee
Labour turnover is calculated as:
Total employees ÷ Number leaving
(Number leaving ÷ Average employees) × 100
Average employees − Number leaving
Number leaving × Total output
High labour turnover indicates:
Strong employee satisfaction
Staff unhappiness and low retention
Excellent management
No HR issues
Costs of high labour turnover include:
Reduced recruitment needs
Recruitment and training of replacement staff
Lower training budgets
No financial impact
Labour turnover context is important because:
Same across all industries
Some industries naturally have higher turnover (retail, catering)
Only financial sector matters
Context is irrelevant
When labour turnover is rising year-on-year:
No investigation needed
Management should investigate as a red flag
Shows business improvement
Indicates successful recruitment
Possible causes of high labour turnover include:
Poor recruitment, weak induction, lack of challenge
Low pay rates
Limited career development
All of the above
Which strategy best helps employees adapt to organisational change?
Reducing training opportunities
Implementing changes without explanation
Ignoring feedback from staff
Providing clear communication and support
What is a common effect of poor management of cultural change?
Increased employee engagement
Higher resistance and lower morale
Immediate acceptance of new values
Unchanged productivity levels
When introducing new technology, what should a business prioritise?
Assuming everyone will adapt instantly
Training employees to use new systems
Reducing communication about the change
Ignoring concerns about job security
