Business Sources and Nature of Change
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- Date Submitted: 12/02/2010 02:40 AM
- Pages: 8
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Executive Summary
JB HI FI is an electronics store that has through its management adapting to change has been a success which is shown through its market share in that area. JB HI FI’s Dominates stems from it identifying the need for change, setting achievable goals and its business culture.
This report will:
* Describe the sources and the Nature of change being experienced by business.
* Analyse how effective management has been in managing the change.
Sources and Nature of change
Nature and sources of change in a business result from either external or internal influences. External factors that influence a business are those that are generally outside of its control as internal influences are those which the business has greater control over. These forces of change have resulted in new responses and strategies from management of JB HI FI.
External influences
There are many external influences on JB HI FI. Since external factors cannot be controlled by the business it therefore needs to adjust operations in order to manage such external changes.
The changing nature of markets
Markets are dynamic. Consumer’s wants are constantly changing. JB HI FI have noticed the consumers shift of expensive ‘Out-of-home’ purchases such as holidays to value for money ‘in-home’ purchases because of the recent period of economic uncertainty. Due to this JB HI FI has built on their reputation of ‘everyday low prices’ to capture the shift in buyer behaviour.
Economic and Financial
Economic forces have impacts on the business’s capacity to compete and customers’ willingness and ability to spend. The Australian dollar has fluctuated from US$0.68 July 2008 to a recent high of parity with the US dollar in October 2010. This has had limited influence as JB HI FI does not import directly and in Australian dollars from LG and Samsung. The recent high in the Aussie Dollar has resulted in cheaper goods which have been passed on to customers. They’ve used hedging to...
JB HI FI is an electronics store that has through its management adapting to change has been a success which is shown through its market share in that area. JB HI FI’s Dominates stems from it identifying the need for change, setting achievable goals and its business culture.
This report will:
* Describe the sources and the Nature of change being experienced by business.
* Analyse how effective management has been in managing the change.
Sources and Nature of change
Nature and sources of change in a business result from either external or internal influences. External factors that influence a business are those that are generally outside of its control as internal influences are those which the business has greater control over. These forces of change have resulted in new responses and strategies from management of JB HI FI.
External influences
There are many external influences on JB HI FI. Since external factors cannot be controlled by the business it therefore needs to adjust operations in order to manage such external changes.
The changing nature of markets
Markets are dynamic. Consumer’s wants are constantly changing. JB HI FI have noticed the consumers shift of expensive ‘Out-of-home’ purchases such as holidays to value for money ‘in-home’ purchases because of the recent period of economic uncertainty. Due to this JB HI FI has built on their reputation of ‘everyday low prices’ to capture the shift in buyer behaviour.
Economic and Financial
Economic forces have impacts on the business’s capacity to compete and customers’ willingness and ability to spend. The Australian dollar has fluctuated from US$0.68 July 2008 to a recent high of parity with the US dollar in October 2010. This has had limited influence as JB HI FI does not import directly and in Australian dollars from LG and Samsung. The recent high in the Aussie Dollar has resulted in cheaper goods which have been passed on to customers. They’ve used hedging to...