This question has two parts; be sure to answer both. First, give examples of two forces outside an organization and two forces inside that would be likely indicators of a need for change. Next, imagine that you run a small downtown store, On the Board, that specializes in selling board games from around the world. Explain how each of the forces you identified might affect your business.

Question

What will be an ideal response?

Answer 1

Outside forces include:

1. Demographic characteristics like age, education, skill level, gender, and immigration—As the population ages, there may be less demand for the games that you sell at On the Board. Another possibility is that people may have more time to play games as they get older, which might mean increased demand for your products.

2. Market changes like mergers and acquisitions, domestic and international competition, and recession—If the economy is in recession, people will spend less money on nonessential items like board games. Competition is most retail markets these days is brutal because of online sales.

3. Technological advancements like manufacturing automation and office automation—The market for traditional board games can be greatly lessened if their creators start selling online versions of the games (or phones apps) instead.

4. Social and political pressures like leadership and values—On the Board may believe in selling only high-quality games, not cheap games like those manufactured in China. Therefore, your company's values may put it at a competitive disadvantage in a world where everyone is looking for the lowest prices on the items they buy.

Inside forces include:

1. Employee problems like unmet needs, job dissatisfaction, absenteeism and turnover, productivity, and participation/suggestions—Employees may rightfully complain that there is not much room for promotion in a small game store. Here, you will need to find ways to keep employees engaged and growing. For example, you might ask one to maintain the store's website and to blog about the latest arrivals in new games. You might send another to game conventions to scout out the upcoming season's "big games."
2. Managers' behavior issues like conflict, leadership, reward systems, and structural reorganization—As the manager/owner of On the Board, you will need to be an effective leader and compensate your employees fairly. If you have high turnover or high employee dissatisfaction, there is a need for change.