6a External Changes

6a External Changes

1. Impacts on Organisations

   • O- Restructuring can lead to savings in cost, long term
   • O- Transport links, products supplied and delivered faster

2. Impact on Individuals

   • X- Being made redundant
     • X- Have to use savings
     • X- Poorer quality of life
   • X- New training may be stressful
     • O- Get up-skilled so can seek more professional jobs with high pay
   • X- New tech put pressure on people to get latest model
   • X- May really HATE the change e.g. Window 10

3. Impact on Systems

   • O- Better efficiency
   • X- May not have capacity for new system
     • X- Need to buy better hardware/ software
     • X- Old system may need more maintenance and be slow
   • e.g. having to change a hard-coded VAT after a VAT change

4. Changes which an organisation has no control over

5. Examples

   • Changed taxes/ tax bands
   • Interest rates
   • Actions of competitors
     • O - Competitor's new product may pressure business to promote more or develop a better product
       • X- May be expensive, need change in working practice or maufacturing
   • Demographic change
   • Cultural trend changes
   • New laws
     • O- Data protection act meant systems had to be updated with better security
   • Development in manufacturing / IT
     • X- Competitors will be able to produce things faster and cheaper
     • O- Increase productivity
       • X- Redundancies
   • Exchange rates
   • Economic change
     • X- Recession reduced demand meaning less income and redundancies in business
     • O- Cheaper companies earn more
   • Natural disaster
   • New bugs/ viruses
     • e.g. Mellenium bug meant switching computers from 2 to 4 digits