Business Priorities & Drivers for Change (1.1.6, 1.1.7)

• How important are ethical practices and sustainability for businesses?

  Ethical practices and sustainability are increasingly important for business success.
• Why are employee well-being and stakeholder relationships important for businesses?

  For long-term success.
• What do businesses use their priorities for?

  Businesses use their priorities to make strategic decisions and allocate resources effectively in a competitive environment
• What are business contexts?

  The different environments in which businesses operate, the factors that drive change within these environments, and the challenges that arise from these changes.
• What factors are business contexts categorised into?


  Internal and External
• What are examples of internal contexts?

  • Organisational Structure
  • Company Culture
  • Leadership and Management
  • Employee Skills and Competencies
• How does organizational structure affect business operations?

  A rigid structure may hinder quick decision-making, while a flexible structure facilitates rapid responses to change.
• How does company culture influence employee behavior?

  A strong, positive culture drives motivation and innovation, while a toxic culture resists change and leads to disengagement.
• What type of leadership is most effective in managing change?

  Transformational leaders who are visionary and supportive drive successful change, while poor leadership may lead to failure.
• Why are employee skills and competencies important in a business?

  They determine how well a business can implement new strategies or adapt to technological changes. Skills gaps may require investment in training and development.
• What are examples of external contexts?

  • Economic environment
  • Market conditions
  • Regulatory environment
  • Technological landscape
  • Social and cultural environment
  • Political environment
• How does the political environment impact businesses?

  Political stability, government policies, trade policies, and international relations can create challenges, including tariffs and political instability in key markets.
• How do social and cultural changes affect businesses?

  Shifts in social norms, values, and demographics influence consumer behavior, requiring changes in products, marketing, and corporate strategies.
• How does the technological landscape affect businesses?

  Technological changes can disrupt industries, so companies must invest in R&D, adopt new technologies, and innovate to stay competitive
• How does the regulatory environment affect businesses?

  Businesses must comply with laws and regulations, and adapt quickly to changes to remain compliant.
• What market conditions directly impact business operations?

  The level of competition, market saturation, and customer demand trends impact how businesses operate, requiring continuous monitoring and strategy adaptation.
• How does the economic environment influence businesses?

  It affects consumer purchasing power, business investment decisions, and market demand.
• What are examples of the economic environment?

  • GDP growth
  • Unemployment rates
  • Inflation
  • Interest rates
• What are examples of drivers for change?

  • Technological Advancements
  • Economic Factors
  • Social and Cultural Changes
• How do technological advancements impact businesses?

  Force businesses to innovate or risk obsolescence by adopting new tools, automating processes, or entering new markets.
• What economic factors influence business strategies?

  Changes in inflation, interest rates, and economic downturns can influence consumer spending and business investment, requiring companies to adjust their strategies.
• How do social and cultural changes affect businesses?

  Shifts in consumer behavior, societal values, and demographics drive businesses to change their products, services, or marketing approaches to align with evolving customer expectations.
• What risk do businesses face if they do not innovate?

  Businesses risk becoming obsolete
• Why must businesses align with changing societal values and consumer behaviour?

  To meet evolving customer expectations and maintain competitiveness.
• How do demographic shifts impact business strategies?


  Demographic shifts necessitate changes in products and marketing approaches to meet the evolving needs of consumers
• How should companies respond to economic challenges?

  By adjusting their strategies
• What must companies do to keep up with technological advancements?

  Companies must adopt new tools, automate processes, and explore new markets enabled by technology
• What drives businesses to adopt sustainable practices?

  Growing awareness of environmental issues and regulatory pressures compel businesses to reduce their environmental footprint
• How do political and legal changes affect businesses?

  New laws, regulations, or political instability can impact business operations, requiring companies to stay compliant and anticipate potential regulatory changes.
• Why are sustainable practices important for businesses today?

  Due to increasing environmental awareness and the need to comply with regulatory pressures.
• What are some challenges arising from change?

  • Resistance to change
  • Financial constraints
  • Operational disruption
• What factors contribute to resistance to change among stakeholders?

  • Fear of the unknown
  • Loss of control
  • Disruption of established routines
• How can businesses overcome resistance to change?

  • Effective communication
  • Training
  • Change in management strategies
• Why is change management important in organizations?

  To effectively navigate resistance and minimize disruption during the implementation of new initiatives.
• What is a potential consequence of introducing new technologies or processes?

  Introducing new technologies, processes, or business models can disrupt daily operations, leading to inefficiencies or temporary losses in productivity.
• What financial challenges do businesses face when implementing changes?

  • Significant investment in technology
  • Training
  • New processes
  • Limited financial resources