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Summary Pearson Edexcel A-Level Business Unit 3 - Business Decisions and Strategy - 3.6 Managing Change £2.99   Add to cart
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Summary Pearson Edexcel A-Level Business Unit 3 - Business Decisions and Strategy - 3.6 Managing Change
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This is a summary of section 3.6 of the Pearson Edexcel A-Level Business syllabus. The notes are organised according to the syllabus, split up under the headings: Cause and Effects of Change; Key Factors of Change; and Scenario Planning. Each section has a table of key terms with their definitions ...

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  • November 27, 2018
  • 6
  • 2017/2018
  • Summary

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3.6 – Managing Change


3.6.1 – Causes and Efeecs of Change
Transformational The ability to implement a vision through radical policies and
leadership strategies to bring about a positive change
PESTLE The factors within the external environment that infuence
business behaviours, decision making and performance
Stakeholders Anyone with an interest in the actions of a business
Financial performance The quantiiable outcomes of a business as reported in the
inancial statements and analysed through ratios
Retrenchment Getng smaller as part of a cost minimisation exercise
Productivity The measure of the output, in a production process, per unit
of input

Managing Change
Managing change is the combination of activities involved in planning for, implementing,
coordinating and monitoring the process of change*
Change creates opportunities and threats* It should not be seen as a bad thing but must be
managed carefully to ensure a positive efect, e*g* increased competitiveness*

Causes of Internal Change
 New leadership, e*g* CEO
 New ownership, e*g* following a takeover
 Change in strategic direction and corporate objectives
 Signiicant investment decisions
 Changes to scope of business activities, e*g* business unit closures
 Adjusting the organisational structure, e*g* delayering

Causes of External Change
 Signiicant competitor actions, e*g* new products, takeover
 Political and legal changes, e*g* deregulation or new taxes
 Signiicant changes in the economic environment, e*g* post-nBrexit for K irms
 Longer-nterm changes in society, e*g* lifestyles, demographics
 Technological changes, e*g* rapid growth or mobile device usage and market related
disruption

Efects of Change
 Competitiveness – e*g* sales, price, market share, KSP, unit cost
 Productivity – e*g* output per worker/machine, input vs* output
 Financial performance – e*g* revenue, cost, proit, proit margins, liquidity
 Stakeholders – e*g* employees, customers, suppliers

1* Organisational Change
Businesses can grow and contract depending on business objectives*
 Growth may involve: new product development, diversiication, mergers or
takeovers
 Retrenchment may involve: delayering, closing down unproitable elements, selling
of elements of the business

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