Using at least one example and referring to at least three sources, briefly explain why organizations change the goods or services they provide.

Authors Avatar

Using at least one example and referring to at least three sources, briefly explain why organizations change the goods or services they provide.

Pham (2009, p.14-15) defined organizational change as, “The process by which organizations reach desired goals. Planned organizational change creates value for stakeholders. Organizational change occurs when an organization restructures resources to increase the ability to create value and improve effectiveness. A declining company seeks ways to regain customers; a growing organisation designs new products.”

The significant prime factors that force organizations to change the type of goods or services they provide are: competition, economics, politics, globalization, demographics, social, ethics, environment, law and technological advances.

Increased competition acts as an incentive for change because an organization must equal or surpass other rivals in the industry to sustain a competitive advantage in efficiency, quality, innovation or customer responsiveness. Managing change is very important when competing for customers (Pham, 2009).

Join now!

Economic, political, and global factors influence change, the North American Free Trade Agreement (NAFTA) and other economic unions, are significant enforcers of change. The European Union (EU) has increased to 27 countries. Production in an EU country eliminates tariffs, so Japan produces cars in England to escape foreign tariffs (Pham, 2009). However, organizations may need structural change to enter foreign markets and adapt to various different cultures.

Demographic and Social factors include an increasingly diverse workforce, changing, hiring and promotion. Many workers are eager to balance work, leisure and family (Pham, 2009). For example, companies need flexibility in scheduling to ...

This is a preview of the whole essay