Responding To The Environment (Strategies)
Essay by 24 • January 25, 2011 • 274 Words (2 Pages) • 1,150 Views
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:
вЂ" Buffering: shock absorber at the Input side (temporary labor) & the Out Put side (ending inventory вЂ" keeping merchandise in hand)
вЂ" 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:
вЂ" Contraction: agreement between two groups to exchange goods / services.
вЂ" Cooptation: New elements into firms leadership (labor rep’s, bankers, customers)
вЂ" Coalition: Acting jointly on some issues for some period of time.
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