Transformation of Business: Change, Technology and Globalisation
What you must understand
This domain examines why businesses must change and how they do it. Know the drivers of change: technology, globalisation, competition, regulation, consumer expectations and sustainability. Understand globalisation's effects - larger markets, offshore production, cost advantages, but also cultural, ethical and supply chain risks. Learn how technology (automation, e-commerce, data analytics, AI) transforms operations, marketing and employment. Understand change management: Lewin's unfreeze–change–refreeze model, communication, training and resistance to change. Know the concepts of corporate social responsibility (CSR) and sustainability, and how they affect reputation and long-term viability.
Traps in questions
- Listing drivers of change without explaining the impact on the business.
- Presenting globalisation as purely positive, ignoring job losses or ethical sourcing issues.
- Describing resistance to change as irrational rather than a rational response to uncertainty.
- Confusing CSR (voluntary beyond legal obligation) with mere legal compliance.
- Forgetting that change must be evaluated: benefits against costs and disruption.
Worked example
A retailer introduces self-service checkouts. A strong answer identifies the driver (labour cost and customer convenience), the impact (reduced staffing, faster service, possible customer frustration), and management responses (training, communication, redeployment). It then evaluates: short-term cost of installation against long-term efficiency gains, noting the risk of poor customer experience.
Rule of thumb
Use driver → impact → management response → evaluation for every change question.