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

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.

How does growth through acquisition cause change in a business?

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.

What is retrenchment or downsizing as a cause of change?

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.

What responses might poor business performance trigger in an organisation?

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

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

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

How does new ownership cause change in a business?

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

Edexcel A-Level Business 9BS0

Meeting Customer Needs

Topic overview The market Market research Market positioning

The Market

Topic overview Demand Supply Markets Price elasticity of demand Income elasticity of demand

Marketing Mix and Strategy

Topic overview Product/service design Branding and promotion Pricing strategies Distribution Marketing strategy

Managing People

Topic overview Approaches to staffing Recruitment, selection and training Organisational design Motivation in theory and practice Leadership

Entrepreneurs and Leaders

Topic overview Role of an entrepreneur Entrepreneurial motives and characteristics Business objectives Forms of business Business choices Moving from entrepreneur to leader

Raising Finance

Topic overview Internal finance External finance Liability Planning

Financial Planning

Topic overview Sales forecasting Sales, revenue and costs Break-even Budgets

Managing Finance

Topic overview Profit Liquidity Business failure

Resource Management

Topic overview Production, productivity and efficiency Capacity utilisation Stock control Quality management

External Influences

Topic overview Economic influences Legislation The competitive environment

Business Objectives and Strategy

Topic overview Corporate objectives Theories of corporate strategy SWOT analysis Impact of external influences

Business Growth

Topic overview Growth Mergers and takeovers Organic growth Reasons for staying small

Decision-Making Techniques

Topic overview Quantitative sales forecasting Investment appraisal Decision trees Critical Path Analysis

Influences on Business Decisions

Topic overview Corporate influences Corporate culture Shareholders versus stakeholders Business ethics

Assessing Competitiveness

Topic overview Interpretation of financial statements Ratio analysis Human resources

Managing Change

Topic overview Causes and effects of change Key factors in change Scenario planning

Globalisation

Topic overview Growing economies International trade and business growth Factors contributing to increased globalisation Protectionism Trading blocs

Global Markets and Business Expansion

Topic overview Conditions that prompt trade Assessment of a country as a market Assessment of a country as a production location Reasons for global mergers or joint ventures Global competitiveness

Global Marketing

Topic overview Marketing Niche markets Cultural/social factors

Global Industries and Companies

Topic overview The impact of MNCs Ethics Controlling MNCs

Managing Change

Causes and effects of change

5 things to know
Paper 2 and Paper 3

Overview

Internal causes such as growth, retrenchment and poor performance, external causes across the PESTLE factors, and the effects on competitiveness and staff.

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?

Questions from this subtopic

Each one with the model answer underneath.

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
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
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
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
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
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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