RESPONDING TO THE ENVIRONMENT
(Strategies)
I- ADOPTING TO THE ENVIRONMENT:
It’s the Decentralizing of decision making, by delegating the authority to the middle managers to cope up with the regional changes.
Techniques:-
a. Adopting At The Boundaries: as an open system organizations by:
– Buffering: shock absorber at the Input side (temporary labor) & the Out Put side (ending inventory – keeping merchandise in hand)
– Smoothing: facilitating fluctuations at the boundaries [i.e. cut price/ incentives to increase demand
b. Adopting to the core: By customizing the product to meet the varied & changing demand. Instead of mass production & a universal product for all, companies opt to produce different products to satisfy different consumer needs.
II- INFLUENCING THE ENVIRONMENT
Independent Strategies: That an organization acting on its own uses to change some aspect of its current environment. [E.g. Public relations, Legal actions, political actions, competitive aggression]
Cooperative Strategies: Used by two or more organizations working together to manage the external environment. Types:
– Contraction: agreement between two groups to exchange goods / services.
– Cooptation: New elements into firms leadership (labor rep’s, bankers, customers)
– Coalition: Acting jointly on some issues for some period of time.
III- SELECTING A NEW ENVIRONMENT
Types:-
a) Strategic Maneuvering: an organizations conscious act of changing the boundaries of its Environment by “domain selection” that is by ent ...