Proactive and Reactive Approaches to Change (VCE SSCE Business Management): Flashcards
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Practise the cards
10 cards from this deck
Proactive approach to change definition
Proactive approach to change definition
Making changes BEFORE problems arise or to seize opportunities
Reactive approach to change definition
Reactive approach to change definition
Changing AFTER external forces/events have already occurred
Key timing difference: proactive vs reactive
Key timing difference: proactive vs reactive
Proactive = BEFORE events emerge; Reactive = AFTER events occur
Trigger for proactive change
Trigger for proactive change
Internal strategic analysis and forecasting of future trends
Trigger for reactive change
Trigger for reactive change
External forces and pressures that have already taken place
Example of proactive change
Example of proactive change
Voluntary product recall before receiving any customer complaints
Example of reactive change
Example of reactive change
Developing service after competitors launch & customers switch
Proactive advantage: first-mover
Proactive advantage: first-mover
Establish market leadership before competitors recognise opportunity
Proactive advantage: cost
Proactive advantage: cost
Preventing problems is less costly than fixing them later
Reactive limitation: timing impact
Reactive limitation: timing impact
Rushed implementation leads to higher costs & lower quality