Transcript - Canberra College Online

Managing
Change
• Syllabus points:
• Nature and sources of
change
• Internal and External
• Structural responses to
change
If you stop
moving
you die!
Managing Change
• Change is any alteration in the business and
work environment.
• For example;
• Change in consumer taste
• Change in production method
• Change in markets or products sold
• Change in how employees perform their
tasks
External v Internal
• External are outside the control of the
business
• Internal are within the control of the business
• Sometimes there is overlap
Sources of Change
External
Internal
•
•
•
•
•
•
•
•
• Accelerating technology
• E-commerce
• New systems and
procedures
• New business cultures
Changing nature of markets
Economic
Financial
Geographic
Social
Legal
Political
Technological
External Sources of
Change
The changing nature of
markets
• Globalisation: is the expansion of the market to
the world stage.
• This more integrated global economic system has
altered the shape of the world markets and the
nature of businesses that compete in them.
How does Globalisation Affect Australian
Businesses?
The changing nature of
markets
•
•
•
•
Downsizing
Casualisation of workforce
E-commerce
Dominant Retailers
External Influences – The Economy
The Economic Cycle
External
Influences –
The Economy
•
•
•
•
•
•
Information is key
Interest Rates
Inflation
Consumer Confidence
Unemployment Data
Balance of Payments
The picture shows a Zimbabwean carrying pile load of cash to buy something. Seems like a lot of
money… but fact is the pile of cash is probably worth less than 100 US dollars.
Revision – Books closed
• What are 3 external influences causing
change for business?
• What are 3 indicators of change in the
economy?
• How does the government slow inflation?
• How did the government stimulus package
affect the cost of borrowing money?
External Influences –
Financial Markets
• Deregulation by government – market
oriented approach
• New banks and financial institutions
• International sources of finance
• Technology allows for new products
External Influences Geographical
• Australia’s geographic location in
the Asia Pacific Region have
provided challenging
opportunities for business
expansion, sales and profit.
• Further changes that are
affecting Australian business
originates from changing
demographic factors.
External Influences –
Social Influences
• Social Change can incorporate any one or a
combination of the following factors; changes
in beliefs, business ethics, work attitude,
cultural changes, spending habits and
population changes.
• Two social issues leading to significant change
in business practice include:
-desire to have family-friendly workplace
practices
-changing makeup of workplaces.
External Influences - Legal
Influences
• Deregulation: is the removal or simplification
of government rules and regulations that
constrain the operation of market forces.
• Why is this good for businesses?
• What is the opposite of deregulation?
• Regulation
• Can you think of areas of business that have
seen increased regulation?
External
Influences - Legal
Influences
• Environmental
• Consumer
protection
• OH&S
• Industrial Relations
• Trade Practices
External Influences Political
• government
regulators – ACCC
ASIC
• Political parties have
different approaches
to managing the
economy
• Tax and areas of
Law
• Floating of the Aus $
(Dec 1983)
• GST was a huge
change in 2000
• Free trade –
removal of
protection
• Government plays a
major role in having
a stable economy
External influencesTechnological
Developments
• Increased productivity
• Improved quality and
range of goods
• Reducing costs
• Eliminating boring
repetitious jobs
• Increases need for
highly skilled labour
• Emphasis on training
Activities
• Evaluate the accuracy of the following
statement: ‘One of Australia’s main
competitive advantages in terms of world
trade is its geographic location within the Asia
Pacific Region’
• Select two demographic influences on
business and explain how they lead to
opportunities and threats for businesses.
Internal Influences
• Internal Change springs from the desire to
develop new and improved ways of doing
things.
• It may be in response to employee requests
or the result of constantly striving for higher
levels of efficiency and productivity.
Internal Influence- Accelerating rate of
technological development
• Many of the businesses operations and
functions are affected from the advances in
information and communications technology
Electronic commerce(e-commerce)
• Electronic commerce(e-commerce) is the use
of electronic communications to do business.
• It covers all transactions made by electronic
methods, including phone, facsimile, and the
internet.
• E-commerce creates new ways of operating
by introducing new systems and procedures.
New Systems and procedures
• Many changes to the existing systems and
procedures have been brought about by
technological development. Some of these
include:
o New business tools that assist in accessing and
analysing information from a variety of sources
o The integration of business into the global
market.
o Improved methods of processing vast amounts
of information etc.
New Business Culture
• A business culture is a set of mostly unwritten
or informal rules that spell out how people are
to behave most of the time. These rules are
based on values, ideas, expectations and
beliefs shared by members of the
organisation.
• Therefore, any new rules and processes of
regulating employees, or by changing the
structure of the organisation itself must be
carefully managed.