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Managing Change

  • 3 subtopics
  • 10 things to know
  • Paper 2 and Paper 3

What Managing Change covers

Managing change closes Theme 3. It covers what forces a business to change, what change does to its people and its competitiveness, why some organisations manage it better than others, and how a business prepares for events it cannot predict.

Where it is assessed

Paper 2 and Paper 3

Theme 3, examined on Business activities, decisions and strategy, then the pre-released synoptic paper.

Check the Pearson Edexcel specification ↗

The 3 subtopics

Each one has its own page.

What you need to know

Answer each one before you reveal it.

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Process

What internal causes drive change in a business?

Key term

What is transformational leadership?

Process

Which political and economic factors cause business change?

Process

Which social and technological factors cause business change?

Process

Which legal and environmental factors cause change, and how does change affect competitiveness?

Process

How can organisational culture hinder change?

Process

How does organisational size affect change?

Evaluation

How does the size of a business affect the speed of change?

Evaluation

What is the purpose of scenario planning?

Key term

What are risk mitigation, business continuity and succession planning?

Take Managing Change further

The same content, four other ways.

Commonly confused

Pairs that lose marks when they are blurred together.

  • Incremental change vs Disruptive change

    Incremental change: change introduced gradually in small steps. Disruptive change: change that transforms how an industry operates in a short time.

  • Organisational culture vs Organisational structure

    Organisational culture: the shared values and habits that shape how people in a business behave. Organisational structure: the formal arrangement of roles, layers and reporting lines.

  • Flexible workforce vs Outsourcing

    Flexible workforce: a workforce whose hours, location or roles can be varied to meet demand. Outsourcing: contracting work out to another business rather than doing it in-house.

Questions from this topic

Each one with the model answer underneath.

  1. 1

    What is organic growth as a cause of change in business?

    Model answer

    Organic growth is internal expansion achieved through increasing sales, developing new products, or entering new markets using the business's own resources, requiring structural and operational adjustments as the organisation expands.

  2. 2

    How does growth through acquisition cause change in a business?

    Model answer

    Growth through acquisition involves purchasing or merging with another business, causing change through integration of different systems, cultures, workforces, and operations, requiring significant structural and operational adjustments.

  3. 3

    What is retrenchment or downsizing as a cause of change?

    Model answer

    Retrenchment is a reduction in organisational size through cutting operations, closing sites, or reducing workforce, requiring structural adjustments such as delayering, consolidation, and reallocation of resources.

  4. 4

    What responses might poor business performance trigger in an organisation?

    Model answer

    Poor business performance may trigger cost-cutting measures, organisational restructuring, strategic repositioning, or leadership changes to address declining results.

  5. 5

    Why does poor business performance act as a cause of change?

    Model answer

    Poor performance creates pressure to improve results, forcing businesses to reassess their strategies, operations, and management approaches to restore profitability and competitiveness.

  6. 6

    How does new ownership cause change in a business?

    Model answer

    New ownership brings different objectives, management styles, cultures, and strategic priorities, leading to changes in direction, operations, and organisational practices.

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Meeting Customer Needs
The Market
Marketing Mix and Strategy
Managing People

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Managing Change revision questions

What does Managing Change cover in Edexcel A-Level Business?
3 subtopics: causes and effects of change, key factors in change and scenario planning. Each one has its own page with questions and model answers.
How is Managing Change organised?
By the Edexcel 9BS0 specification, subtopic by subtopic, so it matches the order you are taught it in.

Every question in Managing Change, on a schedule.

Attempt a question from memory, write the correct version, then attempt it again. Levo records the jump between your first attempt and your last, and brings each question back on the day you are due to forget it.

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