Key Factors Influencing
Organizational Change and Development� PEST Analysis�
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Language: en
Added: Sep 17, 2025
Slides: 28 pages
Slide Content
Key Factors Influencing Organizational Change and Development PEST Analysis
Intended Learning Outcomes Recognize the internal and external environmental forces which trigger organizational change. Analyze change situations and choose appropriate methods of managing and implementing change
Internal Environment
Internal Environment Factors & their Impact on Organizational Change Internal Factor Impact on Organizational Change Value System Core values influence decision-making, leadership styles, and corporate culture. Mission, Vision & Objectives Changes in strategy, goals, and vision drive organizational transformation. Management Structure & Nature Restructuring leadership and decision-making processes influence adaptability. Human Resources Workforce skills, engagement, and motivation affect the success of organizational change. Company Image & Brand Equity Market perception and reputation drive branding and strategic changes. Financial Strength Economic stability or crisis influences expansion, cost-cutting, or investment decisions. Assets & Infrastructure Changes in technology, resource allocation, or physical assets impact operations. Marketing Resources Evolving market trends require businesses to adjust marketing strategies. Research & Development Innovation and technological advancements drive transformation and competitive advantage.
Micro Environment & Its Influence on Organizational Change
Micro Environment Factors & Their Impact on Change Micro Environment Factors Impact on Organizational Change Customers Changing preferences push companies to innovate and adapt. Suppliers Supply chain disruptions force new procurement strategies. Competitors Competitive pressure drives efficiency and differentiation. Employees Workforce expectations lead to policy and cultural changes. Shareholders Profit and growth demands influence strategic direction. Media/Public Relations Public perception pushes CSR and branding shifts.
Understanding the External Environment
How External Change Affects Business?
Political Environment
Political Environment
Political Influences on Organizational Change
Economic Environment
Economic Environment
Economical Influences on Organizational Change
Sociological Environment Demographics: Age, gender, and education levels affect workforce availability. Lifestyles & Consumer Trends: Changing preferences drive product and service demand. Cultural Values: Influence marketing, HR policies, and organizational culture. Demographic and Social Changes: Ageing Population: Affects labor markets and healthcare demands. Social Movements: Influence policies and organizational practices (e.g., diversity and inclusion).
Sociological Environment Work-Life Balance Trends : Increased demand for flexible work arrangements and remote jobs. Social Mobility: Opportunities for career growth influence workforce motivation and retention. Diversity & Inclusion : Businesses prioritize inclusive work environments to attract global talent. Ethical Consumerism: Consumers prefer brands that align with sustainability and social responsibility. Health & Well-Being Awareness : Growing focus on mental and physical health impacts workplace policies and product choices.
Sociological Influences on Organizational Change
Technological Environment Innovation: Drives efficiency and competitiveness. Digital Transformation: Enhances customer experience and operational speed. Automation & AI: Reduce costs and increase productivity. Technological Advancements and Challenges: Adopting New Technology: Can be expensive but essential for growth. Cybersecurity Risks: As digital transformation accelerates, organizations face increased cybersecurity challenges.
Technological Environment Cybersecurity & Data Privacy: Protecting sensitive information is crucial for business trust and compliance. Cloud Computing: Enables remote access and cost-effective data storage. E-commerce Growth: Online shopping trends are reshaping retail and supply chain management. Internet of Things (IoT): Smart devices optimize efficiency in industries like manufacturing and logistics. Green Technology: Sustainable innovations like renewable energy and eco-friendly production are gaining importance
Technological Influences on Organizational Change Dialog Axiata : Dialog Axiata , a leading telecommunications company in Sri Lanka, invested heavily in 5G technology and digital transformation initiatives. This move is aimed at positioning the company as a market leader in technological innovations, providing faster internet speeds, and expanding its service offerings to mobile customers. Dialog's embrace of new technologies also facilitates the creation of new business models such as mobile banking and online entertainment. Amazon : Amazon's rise to dominance in e-commerce is largely driven by technology , such as cloud computing and AI-powered algorithms for personalized recommendations and efficient logistics management. Their use of robotics in warehouses has also significantly reduced costs and sped up order fulfillment, allowing Amazon to maintain its competitive edge.