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Analyse how two factors of the internal environment and two factors of the external environment of a large-scale organisation may act as sources of change - VCE - SSCE Business Management - Question 4 - 2015 - Paper 1
Question 4
Analyse how two factors of the internal environment and two factors of the external environment of a large-scale organisation may act as sources of change. In your r... show full transcript
Worked Solution & Example Answer:Analyse how two factors of the internal environment and two factors of the external environment of a large-scale organisation may act as sources of change - VCE - SSCE Business Management - Question 4 - 2015 - Paper 1
Step 1
Internal Environment Factor 1: Management Style
Answer
One factor of the internal environment that influences change is the management style. For instance, if an organization adopts a more participative management style, it can empower employees to contribute ideas and feedback. This can lead to innovative approaches and responsiveness to market changes. An example of this is when a company, faced with declining sales, decided to involve employees in brainstorming sessions, leading to the development of new product lines that met customer demands more effectively.
Step 2
Internal Environment Factor 2: Organizational Culture
Answer
Another internal factor is organizational culture. A strong culture that encourages adaptability and learning can foster positive change. For example, if a company promotes a culture of continuous improvement, it can enhance employee morale and readiness to embrace new technologies or processes. A notable instance is when a firm introduced a new technology, and its existing culture supported training and adaptation, leading to smooth implementation and increased productivity.
Step 3
External Environment Factor 1: Legislation
Answer
Regarding external factors, legislation often serves as a significant source of change. Changes in laws can compel organizations to adapt quickly to avoid penalties. For example, when stricter environmental regulations were introduced, a manufacturing company had to alter its production processes to comply, leading to both challenges and opportunities for innovation.
Step 4
External Environment Factor 2: Economic Conditions
Answer
Another external factor is economic conditions. Fluctuations in the economy, such as a recession, can force organizations to reassess their strategic goals. For instance, during an economic downturn, a retail company may pivot its focus to online sales, adapting its marketing strategy to meet changing consumer behavior. This shift not only addresses immediate economic pressures but also positions the organization for long-term growth in a digital marketplace.
Step 5
Significant Change Issue
Answer
The significant change issue studied this year revolves around a large-scale organization's move towards sustainability. This change was driven by both internal factors, such as the shift in management style to support innovative environmental practices, and external factors, like increased public demand for corporate responsibility. The company not only modified its operational strategies but also enhanced its brand image by aligning with societal values, demonstrating how deeply intertwined internal and external factors can be in initiating significant organizational change.