1. Explain why change happens in a business environment. You should include at least three reasons in your answer.
Reasons for change in a business environment may include: - Internal factors • A business wants to reduce waste and costs • A business launches a new product • A business introduces 24-hour customer support • A business introduces quality management techniques
- External factors
- Political factors
Examples include: • Government (policies, regulations, grants and the government as a client or customer) • International (conflict, political change, pressure groups and trade policies) • Legislation (domestic, European, future legislation, and international legislation)
- Economic factors
Examples include: • Domestic (competitors' behaviour, economic performance of businesses in the UK, trends, tax and interest rates) • International (competitors' behaviour, economy, economic trends, tax, interest rates, exchange rates and trade issues)
Advertising and PR, brands and image, consumer attitudes, consumer buying preferences, demographics, ethical issues, events, media views.
Ability to install new technology (and of competitors to do so), emerging new technologies, funding for technological research, development and implementation, intellectual property rights, technology legislation and the technological life cycle.
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 it is likely that there will be continual review of the working methods, products or services to ensure that they are still suitable and efficient. A company will want