Certificate in Principles of Business and Administration (Level 2) Unit Four: Principles of Supporting Change in a Business Environment

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Business and Administration

Unit four: Principles of supporting change in a business environment


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Please note that this Assessment document has 3 pages and is made up of 3 Sections.

Name: Matthew Jonathan Smith

Section 1 – Understand why change happens in a business environment

1. Explain why change happens in a business environment.  You should include at least three reasons in your answer.

Change can occur in a business environment for a variety of reasons, and those changes can be reactive, when a business responds to external pressures, and proactive, when a business changes due to internal demands. When considering change it is helpful to use the PEST acronym. A political example is the introduction of new legislation. Economic examples are economic conditions, such as booms or recessions, and competition from abroad. Social examples are changes in the market which affect consumer demand, and changes in consumer preferences. A technological example is the introduction of new technology. Proactive changes come from within a business. Examples of proactive change include the introduction of new business activities, a drive to save money in certain areas, a need to reduce the number of staff, a change in the way business functions are organised, and to acquire new staff with specialist professional skills and expertise which the business needs but currently does not have.

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Section 2 – Understand the purpose of supporting change in a business environment

1. Identify the main reasons for reviewing working methods, products and / or services in a business environment.

The main reasons for reviewing working methods in a business environment are they may highlight areas of work where methods can be improved, show where cost savings can be achieved and will highlight areas where productivity can be improved. ...

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