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Analyse how two factors of the internal environment and two factors of the external environment of a large-scale organisation may act as sources of change - VCE - SSCE Business Management - Question 4 - 2015 - Paper 1
Question 4
Analyse how two factors of the internal environment and two factors of the external environment of a large-scale organisation may act as sources of change. In your r... show full transcript
Worked Solution & Example Answer:Analyse how two factors of the internal environment and two factors of the external environment of a large-scale organisation may act as sources of change - VCE - SSCE Business Management - Question 4 - 2015 - Paper 1
Step 1
External Source of Change: Political Forces
Answer
Political forces are significant external factors that can drive change within large-scale organisations (LSOs). For instance, changes in legislation can compel LSOs to adapt their operations. A notable example is the impact of the Linfox organisation, which was influenced by legislative changes aimed at environmental sustainability. This parliamentary legislation required Linfox to amend its logistics and operational strategies to comply with new carbon emission regulations, leading to a restructuring of its supply chain practices.
Step 2
External Source of Change: Social Responsibilities
Answer
Another external factor is the increasing societal demand for corporate social responsibility (CSR). In response to public pressure, LSOs can evolve their policies to become more socially responsible. For Linfox, this meant adopting sustainable practices in their transportation services and reducing their carbon footprint, which altered their operational approach and branding strategies significantly.
Step 3
Internal Source of Change: Organisational Culture
Answer
Changes in organisational culture can also spur internal shifts. As LSOs strive for competitiveness, promoting a culture that embraces innovation can be transformational. An example would be Linfox implementing a more collaborative work environment that encourages employee input in decision-making, thereby fostering a culture that adapts quickly to market changes.
Step 4
Internal Source of Change: Management Structure
Answer
Modifying the management structure within an LSO can facilitate rapid responses to change. By flattening hierarchical levels, as seen in some initiatives Linfox has undertaken, management can respond more effectively to challenges. This allows for quicker decision-making processes and enhances the organisation's agility in a dynamic market environment.