External and internal sources of change
| English | Chinese | Pinyin |
|---|---|---|
| external change/ekˈstɜːnl tʃeɪndʒ/ | 外部变化 | wài bù biàn huà |
| internal change/ɪnˈtɜːnl tʃeɪndʒ/ | 内部变化 | nèi bù biàn huà |
| budget/ˈbʌdʒɪt/ | 预算 | yù suàn |
| legislation/ˌledʒɪˈsleɪʃn/ | 法律法规 | fǎ lǜ fǎ guī |
| innovation/ˌɪnəˈveɪʃn/ | 创新 | chuàng xīn |
Change reaches every firm
- An external change 外部变化 starts outside a business: a new law, exchange rate, competitor, technology, or customer trend.
- An internal change 内部变化 begins inside it: a new manager, altered budget, staff turnover, or a change in the product.
- The useful question is not “is change good?” but “which group is affected, and what decision follows?”
The market does not ask whether Tuesday is a convenient day for a firm to change.
Which is an internal change?
The manager belongs to the business; the other events begin outside it.
The outside environment
- A higher interest rate can make loans more expensive. A firm may delay expansion because borrowing now costs more.
- A new competitor can lower prices or offer a better service. The firm must improve value, not simply complain.
- Legislation 法律法规 can protect customers or workers, but it can also add training, paperwork, and operating costs.
Match the outside change to a likely business effect.
A good answer explains the link; it does not merely name two business words.
Changes made inside
- A budget 预算 turns a plan into limits on spending. Cutting it may save cash today but can reduce marketing or training tomorrow.
- Innovation 创新 is a useful new product, process, or way of working. It matters only if it solves a real problem for the business or its customers.
- Staff are an internal resource. Losing an experienced worker can slow production even when demand is strong.
Any new idea is automatically useful innovation.
Innovation must solve a real problem for the firm or its customers.
A phone-repair shop sees a new competitor open nearby. This is external: the competitor did not come from the shop. The owner responds internally by offering same-day repair and training staff to explain repairs clearly.
One event can therefore cause several internal decisions. A strong answer traces that chain rather than naming one word from a list.
Put this response chain in order.
Start with the external cause, then explain its cost, then the business decision.
Write one English sentence using cause, effect, and response for a new competitor.
Example: “A new competitor may take customers, so the shop trains staff to offer faster, clearer service.”
Cause → effect → response is a dependable paragraph shape. “Interest rates rise, so loan repayments increase; the firm postpones its new branch” explains more than “interest rates are bad”.
Do not call every problem external. Poor stock records, weak communication, and an unrealistic budget are internal because the business can change them directly.