Answer to Question #254046 in English for Nelly

Question

Explain four types of forces that lead to strategic change in the organisation

Answer 1

Social. Changing social trends can put pressure on businesses to evolve. Consumers are becoming more ecologically conscious, prompting fast food establishments to switch to paper containers instead of Styrofoam. Phosphorus and other environmentally harmful ingredients were removed from cleaning product recipes by manufacturers. Tobacco corporations have bowed to the changing image of smokers and the hazards of their products, and some have begun exploring into eCigarettes and other smoking alternatives in order to stay afloat.

Technology. Do you still have a VHS player? Blockbuster's founder wishes you had. Changes in technology can make or break a company. Whether new technology is introduced to the entire industry, such as when the laser was introduced to modern medicine, making surgeries easier and safer; or to end users, such as when consumers stopped renting movies in favour of cheaper, more convenient streaming services like Netflix, organizations must change to accommodate new technologies or suffer the consequences.

Demographic. A shift in the workforce's demographics may necessitate a cultural shift inside the firm. For example, Avon started and grew their business on door-to-door cosmetic sales, with the primary front-line employee being a stay-at-home wife and mother. Avon had to alter gears and find new ways to promote their products in front of customers as more women entered the workforce in 9-to-5 employment.

Political. Organizations are frequently forced to alter due to government limitations. This might be as basic as a change in the minimum salary for employees or as complex as the laws and limits that govern fair corporate rivalry. Businesses, for example, had to adjust their operations and put in place processes to ensure that all employees had healthcare coverage after the Affordable Health Care Act was enacted, in order to comply with the new law.