Relevance of Change to Large Scale Oraganisations

Stephane Mathieu 12D Business Management

Criterion 1
Relevance of Change to Large Scale Organisations
To be competitive and ahead of the competition, Large Scale Organisations need to constantly change, to improve Revenue and Improve profit.

Explanation and Illustration of the dynamic sources of change.
Sources of Change
Internal Environment:
The Need for Innovation:
To be competitive in business, Large Scale organisations are expected to develop and apply new ideas. The ideas are needed to help innovate operations, product range and design and so on.

Staff Participation for organisational performance:
Organisations are improving and introducing organisational structures which encourage greater staff involvement and commitment to corporate objectives.

Rapid Growth:
As an organisation grows and changes, the prior traditions and and practices and corporate culture becomes like an old shirt which it has out grown, it is restrictive and it is time to be replaced.
Growth is a source of change in the internal environment.

Operating Environments:
Competitive Markets:
The reason of change is to respond to markets constantly changing.
The competitive position of a business in the market depends on:
=Customers and their choices on range, price and quality.
=The Competition from the other businesses
=The sourcing of inputs and funds

The Trend to Outsourcing:
The strategy of cutting permanent staff to a very lean core and relying on outsourcing, is currently the business trend.
Organisational Outsourcing Diagram 5.1

The Macro Environment
Technological Factors:
Information and Communications Technology is constantly evolving, where new developments are constantly attained. The technology is used by businesses where they see the productivity gains.

Society's Attitudes:
Broad Social changes such as the concern for environmental health and a seemingly renewed emphasis on ethics have put pressure on large organisations to conform to...