Business Administration

Unit four: Principles of supporting change in a business environment


You should use this file to complete your Assessment.
  • The first thing you need to do is save a copy of this document, either onto your computer or a disk
  • Then work through your Assessment, remembering to save your work regularly
  • When you’ve finished, print out a copy to keep for reference
  • Then, go to and send your completed Assessment to your tutor via your My Study area – make sure it is clearly marked with your name, the course title and the Unit and Assessment number.

Please note that this Assessment document has 3 pages and is made up of 3 Sections.


Section 1 – Understand why change happens in a business environment

1. Explain why change happens in a business environment.   You should include at least three reasons in your answer.

Workplace change occurs rapidly and often in many businesses. This change may take place in order to respond to a new opportunity or to avoid a threat to the company. One of the major issues associated with managing change is reactive versus proactive responses to change.

Proactive change: involves actively attempting to make alterations to the work place and its practices. Companies that take a proactive approach to change are often trying to avoid a potential future threat or to capitalise on a potential future opportunity.

Reactive change: occurs when an organisation makes changes in its practices after some threat or opportunity has already occurred. Ultimately without change your internal/external customers will not stay satisfied with the service/s they receive; the company will not be able to meet its targets/objectives and consequently for some companies there will no longer be the need for the business to exist.

A PEST analysis is an investigation of the important factors that are changing which influence a business from the outside. PEST stands for:

Political changes:...