VCE Business Management Unit 4 AOS 2 Revision (Grade A+)

Summary:

This text discusses the importance of leadership in change management, management strategies to respond to key performance indicators (KPIs), low and high-risk strategies to overcome employee resistance, Lewin’s Three-Step Change Model, the effect of change on stakeholders, CSR considerations when implementing change, business ethics as a driving force, and reviewing KPIs to evaluate transformation.

Leadership is crucial in managing change within a business. Effective leaders communicate a clear vision for change, empower and support employees, and adapt their management styles and skills accordingly.

Management strategies to respond to KPIs include staff training, motivation, change in management styles and skills, cost-cutting measures, increased investment in technology, redeployment of resources, lean production techniques, and improving quality in production. These strategies aim to improve efficiency, reduce costs, enhance productivity, and meet customer needs.

Low-risk strategies to overcome employee resistance involve effective communication, empowerment of employees, providing support, and offering incentives. These strategies encourage employee engagement, minimize resistance, and lead to positive outcomes.

High-risk strategies, such as manipulation and threats, are more likely to generate negative outcomes and damage working relationships. They should be avoided as they can create a culture of mistrust and resentment.

Lewin’s Three-Step Change Model consists of unfreezing, changing, and refreezing. Unfreezing involves preparing stakeholders for change, communicating the benefits and reasons for change, and overcoming resistance. Changing includes introducing new processes, empowering and supporting employees, and celebrating short-term wins. Refreezing involves consolidating the changes into the culture of the business and ensuring its long-term sustainability.

Change can affect stakeholders, such as managers, employees, customers, suppliers, and the community. Managers should consider the impact of change on these stakeholders and implement strategies to address their needs and concerns.

Excerpt:

VCE Business Management Unit 4 AOS 2 Revision

Seeking new business opportunities domestically and globally:

New business opportunities can arise from within the existing Strategies, including:
• Multiple branding
• Product differentiation or finding a niche market
• Franchising
• Government services
• Innovation
• Develop new products through investment in research and development