principles of business and administration nvq level 2

Topics: Economics, 2008 singles Pages: 5 (1367 words) Published: November 29, 2013
Unit four: Principles of supporting change in a business environment


Name: Philip Bickerton

Section 1 – Understand why change happens in a business environment

1. Explain why change happens in a business environment. You should include at least three reasons in your answer.
For any business to be successful it must be willing to make changes to best provide the services that are required whilst at the same time being profitable, Businesses must constantly evolve and improve both their produce and manufacturing procedures in order to stay competitive in the global marketplace. Management and employees alike must learn to adapt and respond to changes and new challenges. There are two main causes that will make a business make changes, reactive factor and proactive factors. Reactive factor are when external changes occur such as –

Political reasons like a new law/legislation has been passed by government and this could have a direct effect on your business. Economic factors also will play a major role in making changes to the business; these could be anything from consumers buying trends and economic performance to government tax increases, international exchange rates and interest rate fluctuations. Social awareness is vital when it comes to making business changes as this will massively influence any changes that you put into place, if not researched properly and managed effectively you could make huge mistakes when it comes to advertising and public relations. By monitoring consumers buying preferences and competitors behaviour you will be able to make any changes with the knowledge that they will be relevant. New technology will help a business to be more efficient and competitive and by having the latest/newest technology, that could be what make you stand out over your rivals; you must constantly research new technology because all technology has a life cycle and by being contempt with what you currently have could lead to you falling behind in the marketplace.

One helpful way of thinking about the reactive factors influencing change is to use the PEST acronym. Political, Economic, Social, Technology. The other main reason that will cause a business to make changes is when the company has a desire to improve or has internal demands that must be met, this is called a proactive change and this can be of a financial nature such as – implementing a new way to reduce waste efficiently, or launching a new cutting edge product. But it could also be a way to improve the business moral and wellbeing with changes like refitting communal areas (toilets etc.) and enhancement courses such as- first aid training.

Section 2 – Understand the purpose of supporting change in a business environment

1. Identify the main reasons for reviewing working methods, products and / or services in a business environment.

In a business environment nothing stays the same and therefore you must continually review your working methods, products and services to ensure that they are still relevant, suitable and efficient. Companies review their services and products regularly so that they can keep up to date with the expectations of their customers. This will ensure the company can stay competitive and meet its targets and objectives. If a change has to be made to a service or product that you offer this could mean that related procedures need to be reviewed to ensure they are still correct and efficient. Any successful business will follow the principle continual reviewing of the working methods and services, making changes to improve them, reviewing these changes and then making further changes, by doing this you will always be confident in your product.

2. When a business is going through change:

a) Describe the different types of support that people may need.

When a business goes through change it can cause employees to feel unhappy, stressed or anxious this can cause them to be...
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