Reasons for Changes in Business - Essay Example

Change in Business Name: Lecturer: Subject: Date: I strongly agree with the CEO’s quote. Change is usually a transition of individuals, teams or even organizations to achieve a desired future objective. As quoted by the CEO change sometimes usually comes from ordinary talks that don’t have much excitement. However, change is relational in that it relates to many aspects, especially business. Change in deed is very important in business as posited by Kotter, J. (July 12, 2011). Since each and every organization faces various challenges at a time, talks are very important in resolving a solution to these problems. There is a need for new solutions to the challenges. Change often provide these solutions as found by Warner et al. (2015). Ordinary and mundane Talks provide the new solutions needed for change. Consider an example where by the business environment may be negatively affected by the inefficiency of the employees. To solve these changes in legislation, in the organization should be articulated in order to curb the behavior. To solve the challenges in business environment, top executives such as CEOs and managers are advised to expect changes and thus provide effective improvement strategies to accommodate the changes. They are expected to keep any change that may occur under control for the benefit of the organization (Kotter, J., and July 12, 2011). Change management is very essential in managing the impacts that may come along with a change in the organization as posited by Warner et al. (2015). The top executives of business organizations ought to use change leadership in supporting the process of change in their entities. Executives especially the CEOs have the duty to change the organization to the current trends. There is a need for harnessing the driving force that will implement positive change in the business organization. This will transform the business organization accordingly. Change usually affects the decisions to be made in the business entity as claimed by Kotter, J. (July 12, 2011). Human resource is very essential in ensuring a successful change management process in the business organization. This not only makes sure that the existing employees meet the required change but also incorporate it to their day to day activities effectively. It is apparent that new changes in policies expects the workforce to improve their existing skills to meet the changing needs of the customers as found out by Warner et al. (2015). Organizations also improve their current methods of production to change with the current trends in the market. Change strategies often involve setting specific targets for achieving over a specified time frame. The need for evaluation of change programs is very essential in business organizations. There are various reasons for implementation of change in a business organization. The first major reason is the recent globalization with the rapid technological advances in the business world as found out by Conner and Daryl (2012). With the introduction of the social platforms such as Twitter, Facebook, Instagram business have been revolutionized .this has in turn increases the need for change. Change management is required, in this case, to manage the impacts of the change to the business effectively. With the growing technology, the need for change is more. Information and knowledge regarding business is easily assessable nowadays thanks to the new technology. The easily accessible information regarding business has resulted in an unprecedented examination, especially from the stakeholders. Social media platforms have also improved the examination of business organizations. With this, change is very essential in ensuring the business is viable to the changing business trends. The second reason for the change is for taking a new business path. There is a need to change the existing business development plans to be viable to the new business plan to be taken. Additional market research to acquire the data regarding the new business plan is very essential. Change is very important to improve the competitive aspect of the business. Competitors and competition usually change and thus it is important to change with the current trends by taking a new business path that will improve the business’s competitive aspect. Thirdly the other reason for the change is for a business to take a new marketing strategy. New marketing strategies are very essential for businesses to change the existing business development plan as claimed by Conner and Daryl (2012). Change of plan is done to reflect this. Consider an example where by an organization that started business long ago before the era of the various social platforms such as Twitter and Facebook. This organization has to change its plan and include some of the strategies that incorporate the social media platforms. For instance, the organization may opt to hire a freelancer writer to manage a social media account foot the business and thus to market the organization (András et al., 2013). The fourth reason for the change in a business organization is to join with a new business partner. Teaming up with a new business partner requires the existing business organization to change their existing business strategies as claimed by Conner and Daryl (2012). The business development business development plan has to be changed to accommodate the new significant changes to the business organization. There is a need to change the existing targets for the organization. Salary pay-outs are also changed for the employees to accommodate the new employees of the partner. Fifth, more competitors, increases the need for change. With the increasing number of competitors, top executives mostly CEOs and managers are encouraged to change their development plan so as to improve their competitive aspect (Andres et al,2013). Changes of the existing business development plan are indeed very vital in ensuring the business organization remains viable to the changing trends in busses. There is a need for changing the existing marketing strategy for the business to differentiate itself from the other business. This not only makes the organization more competitive but also makes it more marketable to the current business trends (Phillips and Julien R., 2003). Modifications are usually done to change the financial and legal aspects when it comes to the development plan of the entity (Whelehan, S., 2005). Therefore, change is much relational to the competitive aspect of an organization. Finally, the need for a new business model increases the need for change. There has been a significant change of business models with the rapid technological advances. Changes in business models based on the various accesses to the different technological aspects are very important in ensuring the business is viable to the current trends of technology (Conner and Daryl, 2012). Change in the business model should be evident in the existing business development plan. Consider an example where by a business organization wants to switch from their existing mail-order business to a new technology oriented e-commerce store to improve the efficiency of the organization ( Whelehan, S. 2005). The business organization will have to change their existing business development plan to accommodate this switch. These changes will not only affect the finances of the organization but also the customer relationships. More clients will be attracted to the business if the organization is providing good customer services. With the introduction of software in the new technology, business can effectively change its business model. The business organization can change the existing traditional development plan by incorporating new technologies such as software’s (Phillips and Julien R., 2003). The soft wares can improve accuracy and efficiency especially when it comes to accuracy. A software program can do various maths in the business organization and therefore minimizing errors that could have occurred when doing the financial calculations with manual systems. According to Phillips and Julien R. (2003), Change is usually an inevitable part of business, especially with the new technology. However, it is not always welcomed with open arms by not only the top business executives but also the employees. Workers may often fear they won’t adapt to the new changes thus making them hesitant to accept change in the business organization (Whelehan, S., 2005). Employees may sometime feel that the new change is inconvenient thus making them hesitant from leaving their comfort zone. The short terms impacts of change are often unbearable to the stakeholders, top executives and the employees (Dean and Christina, 2009). It is apparent they are usually painful. However, the long-term benefits are very fruitful to the business organization at large. Change usually has positive impacts on the business organization in the long run period. There are various positive impacts accompanied by a change in a business as explained by András et al. (2013). The first positive impact is staying current to the current market trends. Change usually enables businesses to stay current with the changing industry and market trends. This not only helps in managing the current customer but also attracts a new customer to the business as claimed by Phillips and Julien R. (2003). Consider an example where by a business organization develops a new product when a competitor does so as posited by Levin and Ginger (2012). For instance when a competitor develops and markets a particular new product that later becomes successful in the market trends the business competing with the competitor ought to also develop and market the similar product in the market( Whelehan, S. ,2005). However, the organization can use a different strategy diverse from that of its competitor to improve its competitive aspect for more markets. It may incorporate technology in the production of the similar product to improve its quality to attract more customers to its entity. The second positive impact for change is that it provides new opportunities for the business organization. Embracing change in a business usually affects the employees positively since it provides good new opportunities (Phillips and Julien, 2003). Consider an example of an employee in ascertain company who enthusiastically applies herself to learn in order to learn how a new computer system brought in a company works. He or she can be provided with a new good opportunity of training others who were hesitant to do so. By assuming this particular role that involves leadership role, the employee positions herself or himself in a very considerable opportunity of accepting more future additional responsibilities as claimed by Levin and GInger (2012). She or he may be promoted in the future because of this undertaking. Thirdly, change in business also encourages innovation (Dean and Christina, 2009). Business organizations that are adept to not only handling or even embracing change usually facilitate a good environment for innovation. It is apparent that creating a very good environment for innovation is very vital in ensuring the growth of the business. Employees usually tend to start innovating when they feel that their ideas may be considered by the top executives as found out by Dean and Christina (2009). They may be willing to create for the growth of the business organization. Good product or marketing ideas are very essential in ensuring the business organization is a success. Therefore, there is a very strong relation existing between change and innovation. Change is very important for encouraging innovation or even creation for the economic expansion and growth of the organization. The fourth positive impact of the change in a business is that it increases efficiency. Change usually increases the efficiency of the business activities thus improving the output from production activities (Levin and GInger, 2012). Efficiency doesn’t only improve the quantity of the products produced by the business organization but also it improves the quality of the product. The improved product makes the customers more satisfied. Employees are also satisfied and are at peace. For instance, the business organization can introduce a new delivery process thus improving the speed that the customer receives the merchandise. The business may also opt to switch to a technology oriented payroll process. This may mean a salesperson is paid his or her commission soon than later thus encouraging more clients to the business organization as explained by Conner and Daryl (2012). Another example is when a new machinery is introduced to a company. This machinery speeds up the processes of production in the company making the process more effective than before. This does not only improve the output of the product but also improves the quality of the product. This in turn attracts more customers to the business therefore improving revenue generation of the business as noted by Phillips and Julien R. (2003). Finally, change also has a positive impact in that it improves the attitude of the employees in a business organization. Philosophical change involving the entity is usually advocated for to boost the morale of the employees as claimed by Dean and Christina (2009). Stakeholders and top executives should be trained on how to teach their employees on personal changes. Personal changes are very essential in improving the attitude of the employees to the business organization. For instance, a change in the current philosophy in the human resource department of the company may allow for a more relaxed and comfortable environment for the employees. This may, for example, welcome a more casual dress code for the employees. This in turn boosts the morale of the employees, and they have a positive attitude towards the business organization according to Filicetti and John (2007). A positive attitude may make the employees work with redefined psych and even innovate and create new products or channels of marketing in the business entity. This in turn improves the economic growth of the organization. It also improves the competitive aspect of the business organization as demonstrated by Anderson, D. & Anderson, L.A. (2001). Top executives such as CEOs and managers are embraced to be open minded to give opportunities to the employees for them to share their knowledge and skills. This is very important since it improves their attitude in a considerable manner. Close minded executives may lower the morale of the employees thus making the employees have a negative attitude towards the business organization as demonstrated by Filicetti and John (2007). This may in turn lower the morale of the employees thus lowering their output. However, there are various negative impacts accompanying a change in a business organization. The first major negative impact is mental stress Skelsey and Dan (2013). This occurs mostly when the changes are broad. If several changes occur simultaneously, employees may suffer from mental stress. There is a need for the executives and the stakeholders to communicate early on any possible changes in the organization to prepare the employees psychologically as noted by Marshak and Robert J. (2005). The other negative impact is the loss of loyalty of the employees to organizations. Most of the business organizations usually make changes regarding cost-saving in their firms (Marshak and Robert J., 2005). The organization may look to make various changes to cost- save thus cutting or lowering the salaries and benefits of the various employees as claimed by Skelsey and Dan (2013). The employees may eventually leave the organization or become more resentful (Filicetti and John, 2007). They eventually lose motivation and thus lowering their efficiency. This may sabotage the business organization. Change is very essential in a business organization as explained in this essay. However, it may result from ordinary mundane talks but it relates to very many factors of business. 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