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Managers can take either a proactive or a reactive approach to change - VCE - SSCE Business Management - Question 2 - 2019 - Paper 1
Question 2
Managers can take either a proactive or a reactive approach to change. Describe how each of these approaches can be used to manage change.
Worked Solution & Example Answer:Managers can take either a proactive or a reactive approach to change - VCE - SSCE Business Management - Question 2 - 2019 - Paper 1
Step 1
Describe how a proactive approach can be used to manage change.
Answer
A proactive approach to change involves anticipating changes before they occur and preparing for them in advance. Managers employing this approach analyze trends in the marketplace and within the organization to identify potential challenges or opportunities. For instance, a company might invest in market research to understand shifts in consumer preferences or technological advancements. By doing so, they can implement strategies such as training employees ahead of time, upgrading technology, or adjusting marketing strategies to align with anticipated changes. This forward-thinking strategy allows organizations to minimize disruption when changes inevitably occur and can enhance their competitive advantage.
Step 2
Describe how a reactive approach can be used to manage change.
Answer
In contrast, a reactive approach involves responding to changes after they have already occurred. This method typically arises when an organization fails to identify potential changes early on. For instance, if a competitor introduces a new product that captures market share, a company may need to quickly develop a similar product or improve its existing offerings. While this approach can sometimes lead to short-term fixes, it often results in a lack of strategic planning and can cause setbacks such as loss of revenue or market share. Successful implementation requires swift decision-making and agile adjustments to the business model, ensuring that the organization can recover from unforeseen changes with minimal loss.