Causes and Types of Change

• What are the two main causes of change in business?

  Internal and external causes
• What are internal causes of change in a business?

  Changes initiated by decisions within the business
• What is a common internal cause of change?

  New management decisions
• What might a management decision to restructure indicate?

  It is an internal cause of change
• What are external causes of change in a business?

  Changes initiated from outside the business
• What external factors can impact a business?

  Technological advances, economic changes, social trends
• How have major supermarket groups responded to competition?

  By restructuring to remain competitive
• What societal issue has prompted businesses to change their practices?

  Plastic pollution awareness
• What are the two main types of change in business?

  Incremental change and step change
• What characterizes incremental change?

  Small changes over a long period
• How does step change differ from incremental change?

  Step change is significant and rapid
• Why is change management important for step change?

  It supports businesses during significant changes
• What is disruptive change?

  A significant change due to external factors
• How have traditional TV networks been affected by disruptive change?

  By the rise of streaming services
• What are the key distinctions between internal and external causes of change?

  • Internal causes: Initiated by decisions within the business
  • External causes: Initiated from outside the business
• What are the characteristics of incremental and step change?

  • Incremental change:
  • Small, gradual changes
  • Occurs over a long period
  • Usually faces little resistance
  • Step change:
  • Significant, rapid changes
  • Often requires change management
  • More likely to face resistance
• What is the impact of disruptive change on businesses?

  • Disruptive change arises from external factors
  • It significantly alters market dynamics
  • Businesses must adapt to survive