4.1 – What is Change?
change is part of everyday life for international businesses
huge changes in information technology and telecommunications
How different have our lives been due to technology?
Business still out to make a profit with a changing marketplace
Some businesses don’t survive change
Others take advantage and become successful
3 causes of change: new technology, new processes, new attitudes
inventions: are totally new products that are based on a creative idea
innovations: are modifications to an invention that take the inventor’s initial concept even further
Phone -> invention Cell phone -> innovation Digital technology -> invention that
brought about cell phone
technological change can occur on a grand scale or on a smaller scale• ATM -> grand scale• Resealable chip bags -> smaller scale
patent registration protects the invention for the owner and offers exclusive use/rights
inventor can licence the invention and/or sell the new product to others
patents, copyrights, and licences are valuable property
inventors often partner with other companies
process change, often initiated by technological change, takes place in manufacturing, distribution, inventory control, accounting, and marketing
manufacturing: change in the way something is made - faster, better, less expensive
distribution: electronically - e-mail, Internet, web sites have eliminated need for intermediaries, wholesalers, importers, retailers
Now on-line catalogue distribution methods, easier transportation of products and business papers by such high technology companies as Federal Express
Inventory control: manually done to electronically linked; used by suppliers, customers
Just-in-time - an inventory control system that schedules products to arrive as they are needed for manufacturing or for supply to customers, strong relationship needed by purchaser and supplier
Kanban is a Japanese philosophy that has as a major principle the elimination of waste, especially wasted time, labour, and resources (similar to JIT)
Accounting: new accounting systems and software allow for instantaneous reporting of profit, inventory, investment, and other financial data; know precise information from all stores-departments-plants; online inventory management
Marketing: • primarily process changes• big box retailers (category killers), power centres• smaller retailer becoming more specialized• data mining (examining your credit purchases,
bank card records, loyalty cards) is a way of connecting specific customer characteristics to their purchases - predict when a customer will need a product
• target marketing and distribution information; promotional activities; coupons, contests, and other sales promotion methods target customers
Changes in values equals changes in purchases
Environmental awareness; concern for our health; social conscience; trends or fads or long-term and lasting in the marketplace;