Change management (Lewin, Kotter) and cultural considerations: WACE BME Unit 3
“Explain the factors driving change in a global market, the reasons people resist change, how change can be managed using models such as Lewin's force field analysis and Kotter's eight steps, and cultural considerations in global business practice”
Global change is driven by technology, competition, customers and regulation, and resisted through fear, habit, and lack of trust or information. Lewin's force field analysis compares driving and restraining forces and manages change through unfreeze, change and refreeze; Kotter's eight steps move from urgency to anchoring change in the culture. Cultural considerations such as communication, hierarchy, time and etiquette shape global business practice.
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What this dot point is asking
Unit 3's People content is about managing change as businesses grow internationally and working effectively across cultures. You need to explain what drives change, why people resist it, how change models help, and which cultural considerations affect global business. Study resources built on the syllabus name Lewin's force field analysis, and Kotter's eight steps appear in past exam questions; check your school's course outline for the exact list.
The answer
Factors driving change in a global market
Technology, global competition, changing consumer demands, trade agreements and regulation, economic conditions (exchange rates, recessions), mergers and alliances, and expansion into new markets.
Reasons for resisting change
Fear of the unknown, job insecurity, loss of status or power, habit, lack of information or trust, extra workload, poor timing, and past experiences of badly managed change.
Lewin's force field analysis
- List driving forces (for change) and restraining forces (against change), and rate their strength.
- Change occurs when driving forces outweigh restraining forces.
- Managers strengthen driving forces and, more effectively, weaken restraining forces.
- Lewin's change process: unfreeze (prepare for change), change (implement), refreeze (embed new practices).
Kotter's eight steps
- Create a sense of urgency.
- Build a guiding coalition.
- Form a strategic vision and initiatives.
- Communicate the vision (enlist a volunteer army).
- Remove barriers (enable action).
- Generate short-term wins.
- Sustain acceleration (consolidate gains).
- Institute (anchor) the change in the culture.
Cultural considerations in global business
Language and communication styles (direct or indirect), attitudes to hierarchy and authority, individual or group decision-making, time and punctuality, negotiation styles, relationship-building, religion, holidays, etiquette (greetings, gifts, business cards), and business laws and practices. Cultural frameworks such as Hofstede's dimensions (for example power distance and individualism) help compare countries.
An Australian retailer expanding into Malaysia changes its store rosters and product range.
- Drivers: new market, competition, need for local products.
- Resistance: Australian head office staff worry about extra workload; local staff are unsure of new systems.
- Lewin: weaken restraining forces with training, clear communication and local managers; unfreeze, change, refreeze with new procedures.
- Culture: adjust rosters for Ramadan and public holidays, stock halal products, and respect local management styles.
- Naming a model without applying it
- Use the business in the question.
- Only strengthening driving forces
- Reducing restraining forces is often more effective.
- Stereotyping cultures
- Discuss tendencies and the need for local advice.
Practice questions
Original practice questions graded from foundation to exam level, each with a full worked solution. Try them before revealing the solution.
foundation3 marksOutline three strategies a manager could use to reduce resistance to a new global computer system.Show worked solution →
- Communicate early and clearly about why the change is needed and how it affects staff.
- Involve staff in planning and testing the system so they have ownership.
- Provide training and support so staff feel confident using it.
Marking guide: 1 mark per relevant strategy.
core5 marksApply Lewin's force field analysis to a Perth manufacturer deciding whether to move part of its production to Vietnam.Show worked solution →
- Driving forces
- lower labour costs; access to Asian markets; pressure from competitors with lower prices; free trade agreement benefits.
- Restraining forces
- Australian staff fear job losses; union opposition; quality control concerns; reputational risk ("Made in Australia" loss); cultural and language differences.
- Analysis
- managers rate the strength of each force. To enable change, they strengthen driving forces (show cost pressures with data) and weaken restraining forces (redeploy and retrain Australian staff, build quality systems, communicate openly).
- Decision
- if driving forces outweigh restraining forces after these actions, the move can proceed, managed through unfreeze, change and refreeze.
Marking guide: 2 marks for driving and restraining forces, 2 marks for strategies to shift the balance, 1 mark for a decision.
exam8 marksExplain how cultural considerations could affect an Australian mining services company negotiating a contract in Japan, and recommend how the company should prepare.Show worked solution →
A strong response:
- Communication: indirect communication styles mean "yes" may signal understanding rather than agreement; silence can be part of consideration.
- Hierarchy and decision-making: decisions often involve consensus across levels, which can take longer than Australians expect.
- Relationships and trust: long-term relationships are valued before business commitments.
- Etiquette: exchanging business cards respectfully, punctuality, formality, titles and gift-giving conventions.
- Language: interpreters and translated documents reduce misunderstandings.
- Preparation: cross-cultural training, hiring local advisers, allowing more time for negotiations, building relationships through visits, and adapting presentations.
- Link to success: respecting culture builds trust and improves the chance of long-term contracts; ignoring it risks offence and failed negotiations.
Marking guide: 4 marks for explained cultural considerations, 3 marks for preparation strategies, 1 mark for linking to business success.