This document outlines the course schedule and content for a Business Management and Organization course. The course covers 4 chapters: 1) Business Management and Organization, 2) Objectives, Stakeholders and the External Environment, 3) Organizational Planning and Decision Making, and 4) Growth and the Impact of Globalization. Chapter 4 focuses on how businesses grow, the options for external growth through mergers or acquisitions, the reasons companies pursue globalization, managing change, and key elements to successfully managing change.

1. BUSINESS
MANAGEMENT
AND
ORGANIZATION

2. COURSE SCHEDULE
 CHAPTER 1: BUSINESS MANAGEMENT AND ORGANIZATION
 CHAPTER 2: OBJECTIVES, STAKEHOLDERS AND THE
EXTERNAL ENVIRONMENT
 CHAPTER 3: ORGANIZATIONAL PLANNING AND DECISION
MAKING
 CHAPTER 4: GROWTH AND THE IMPACT OF
GLOBALIZATION

3. Growth and the impact of
globalization
Chapter 4

4. Growth and evolution
As businesses grow in
size they begin to
benefit from falling
average costs
(economies of scale)
As businesses grow in
size there is a point
where average costs
begin to rise –
inefficiency begins to
appear
(diseconomies of
scale)

5. Should I expand my business
or stay small scale?

6. Internal (organic) growth
and external growth

7. External growth
Joint
ventures
(50-50)
Strategic
alliance
(partnerships)
Mergers
and
acquisitio
ns

8. Competitive Advantage

9. Ansoff Matrix

10. Globalization
Multinationals developed for
a variety of reasons:
 Saturation of domestic
markets
 To benefit from lower
labour costs
 Tax planning purposes
 Incentives from
governments
 To be closer to raw
materials and energy
resources

11. Change
The rate of change is accelerating and no business
is immune, for example, there are:
 new markets
 new products and services
 new production methods
 new social values
 new technologies
Every change is a challenge to the management of
a business.

12. Causes of Change
• Globalization
• New technologies
• Demographic changes
• Social and cultural changes
• Changes in regulation
• Economic trends
competition
External drivers of
change
• Changes in human
resources
• New management
approaches
• Changes in employees
expectations
• New product development
• Financial requirements
Internal drivers of
change

13. Resistance to change
Number of factors for
resistance
 Personal reasons
(fear of unknown)
 Explanation and
communication
(unclear reasoning)
 Social aspects
(concerns of break up of
existing teams)
 Financial reasons
(fear of redundancy)

14. Effects of rapid change

15. Managing change
Three key questions
associated with business
change
 Is the change anticipated
or unanticipated?
 Have managers planned
for change?
 To what extent is the
change controllable by
the business?

16. Key elements of successful
management change