City & Guilds Level 3 Business Administration Practice Test 2026 - Free Business Admin Practice Questions and Study Guide

A key internal reason for needing change within an organization is changes in senior management. When there is a shift in leadership, it can significantly influence the direction and strategy of the organization. New leaders often bring fresh perspectives, different priorities, or new visions for the company, which can prompt changes in policies, procedures, and organizational culture. This shift can also result in a reassessment of goals and objectives, leading to necessary changes to align the workforce with the new leadership’s vision.

The other options primarily relate to external factors. Changes in technology, for instance, are driven by advancements in the market rather than internal decisions within the organization. Fluctuations in currency rates are influenced by economic conditions outside the organization, impacting financial decisions but not necessarily prompting internal structural change. Competitor market share reflects external competition, which can inspire change but does not originate from within the company itself. Therefore, changes in senior management stand out as an internal catalyst for transformation.