Business & Finance

Task  – In organizational change, there is a debate in the literature about the benefits of proactive versus reactive change efforts. You are to complete the debate proactive change. While both positions in each argument are important, your task is to state why you believe your side is more important than the other position and support the argument with at least three references from peer-reviewed literature using APA formatting. Your argument should contain a conclusion and the reasons to accept the conclusion.

Lecture Reading:

It is essential to understand the difference between being proactive and reactive. In my experience, proactive business owners have a significant competitive advantage. They are flexible, adaptable and focused on continually improving their customer service, productivity, efficiency and workplace environments. Reactive owners, on the other hand, never maximize the potential of their businesses because they postpone change until it’s absolutely necessary, and sometimes too late.

Proactive organizations continually analyze the business environment for signs of impending change so they can improve their performance. For example, a manufacturer might hire a market-research firm to analyze its target consumers and forecast shifts in consumer demand. The proactive manufacturer can use the data to optimize its product line long before its reactive competitors recognize they are behind the times. At the same time, the manufacturer might institute a self-evaluation program to analyze its productivity, efficiency, worker morale and other areas that bear improving. A reactive business might ignore danger signs and allow serious problems to develop. For example, if a factory waits until third-party inspectors call attention to its poor equipment maintenance, problems that could have been easily fixed early on might now require extensive repairs. A reactive organization might miss opportunities if it only improves itself as situations demand. Suppose a company waits until revenues are low to find new customers. Had it expanded its customer base earlier, the company could have kept revenues high instead of putting itself in a precarious financial situation. Proactive organizations are a step ahead of the game. Rather than wait for circumstances to dictate their actions, they change long before risks materialize. Competitors find it difficult to keep up because proactive organizations undergo continuous self-improvement even during good times, when other organizations might rest on their laurels.

Proactive organizations are also cost-effective. By honing their performance to increase productivity and efficiency and by dealing with small problems before they develop into bigger problems, they save money that can be used to lower their prices, further increasing their competitiveness. As you enter your debates on this topic, think about what it means to be ahead of the game vice waiting for things to happen.

Reference:

Mack, S. 2017. Being Proactive Vs. Reactive. Retrieved from http://smallbusiness.chron.com/being-proactive-vs-reactive-57503.html

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