Responding To The Environment (Strategies)

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.