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Managing change is a vital part of ensuring the success of a large-scale organisation - VCE - SSCE Business Management - Question 7 - 2010 - Paper 1
Question 7
Managing change is a vital part of ensuring the success of a large-scale organisation. Analyse possible driving and restraining forces which might cause change in a ... show full transcript
Worked Solution & Example Answer:Managing change is a vital part of ensuring the success of a large-scale organisation - VCE - SSCE Business Management - Question 7 - 2010 - Paper 1
Step 1
Driving forces for change in a large-scale organisation
Answer
- Market Demand: Changes in consumer preferences can drive organizations to innovate and adapt their products or services. 2. Technological Advancements: Adoption of new technologies improves efficiency and can be a significant driver of change. 3. Competition: The actions of competitors can prompt an organization to alter strategies or operations to maintain market position. 4. Regulatory Changes: New laws or regulations may require changes in business practices to comply. 5. Globalization: Expanding into new markets may necessitate changes in operations and strategy.
Step 2
Restraining forces against change
Answer
- Organizational Inertia: Resistance to change can stem from established routines or cultures within the organization. 2. Employee Resistance: Employees may fear loss of job security or require retraining, causing reluctance to accept change. 3. Resource Constraints: Limited financial or human resources can hinder the ability to implement change effectively. 4. Lack of Leadership Support: Changes may fail without strong commitment and support from top management. 5. Technological Challenges: Insufficient technological infrastructure can impede the ability to enact change.
Step 3
Example reference to an organisation studied
Answer
One pertinent example is the Coffee retailer, which faced increasing competition and changing consumer preferences toward ethical sourcing. This led to a drive for change, pushing the organization to adopt Fair Trade practices. However, the organization also confronted resistance due to existing supply chain constraints and the inertia of established processes. Implementing these changes required not just adjustments in sourcing but also significant shifts in marketing strategies to align with their new ethical stance.