Businesses face a constant barrage of change, from without and within, and often seemingly hostile. But change can present opportunities as well as threats, and how businesses navigate change can radically affect their fortunes. Here, we consider examples of businesses facing internal forces for change, including poor business performance, new leadership, takeovers and mergers.
One key internal force for change is financial. In June 2009, the gambling group Gala Coral (saddled with £2.7 billion of debt) cut 300 jobs, mainly in marketing and finance. This was a consequence of restructuring that reduced the number of operating divisions from five to three. In turn, this allowed the business to centralise its support functions, such as human resources (HR) and marketing. Gala said that these functions would be ‘run centrally rather than through the divisions’, allowing a saving of £10 million a year.
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