Explain four types of forces that lead to strategic change in the organisation. (4)
Technology, economic, social and political, are four types of forces that can lead to a strategic change in the organization.
Technological force: Technology is the major external force which calls for change. The invention of new technology such as computers, telecommunication systems and flexible manufacturing operations has intense impact on the organizations that adopt them.
Economic Forces: The economic forces influence organization’s change management strategy by either presenting opportunities or challenges in the form of economic uncertainties or growing competitive pressures.
Social forces. Changing social developments can pressure organizations into making changes. This is because consumers become more environmentally conscious, a trend which pushes fast food restaurants to replace Styrofoam containers with paper.
Political force. Government boundaries often force change onto organizations. This can be something as simple as a change in minimum wage for employees and restrictions governing fair competition in business.