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Planned and Unplanned Change - Coggle Diagram
Planned and Unplanned Change
Planned Change
Planned change is created internally and is structured and timetabled
For example, a cycle manufacturer may decide to offer a new range of electric bikes to launch in the next twelve months
Unplanned Change
Unplanned change occurs in response to a shock to the business and is often unstructured and under-resourced.
A shock could be external (exogenous), such as introduction of new technology by competitors (Tesla - Driverless car), or internal, such as a key worker suddenly leaving (Steve Jobs).
Effects of Change
Changing Legislation
The need to comply with constantly changing legislation has the effect of raising costs for businesses.
For example, products need to be adapted to comply with stricter Health and Safety legislation.
Flexible workforce
In order to respond quickly and effectively to change, many businesses today have a much more flexible workforce to allow them remain competitive.
Diminished brand loyalty
New entrants into the market find it easier to grab market share. Existing businesses have to fight harder to maintain sales.
Marketing costs are increased, to maintain brands and to introduce new products.
New product developments
New products MUST to be developed because goods are seen as more disposable and consumers are constantly looking for better quality products.
A business needs to be aware of possible future consumer tastes and make sure they are prepared to respond to market changes
Shorter product life cycles
This applies right across the range of consumer goods, from electronics to cars, from holidays to clothes. This trend brings both threats and opportunities to retailers and manufacturers.
With a shorter life cycle, products must pay a return immediately, there is little incentive for long term investment.
Returns can be improved by seeking new markets for products.