How Organizations adapt to Their Environments
The components of the environment affect the functioning of a business organization. The management should develop some alternative strategies to adapt to environmental influence. The following points for how organizations adapt to their environments:
- Information management- Organizations can adapt to their environment through information management. They can apply many techniques for information management. These consist of boundary spanners, environmental scanning, and information system. There must be a proper information system within the organization.
- Strategic response- Strategic response is the process of applying existing plans and policies if successfully functioning, or developing new plans and policies to cope with environmental change. The common approaches of strategic response are at least resistance; proceeding with caution and dynamic response.
- Mergers, takeover, acquisition and alliances- In a competitive environment, a business organization may face threats and challenges due to environmental changes. To adapt to environmental changes, a business organization may implement different strategies consisting of mergers, takeover, acquisition and alliances.
- Organization design and flexibility- In a dynamic environment, it is essential to choose a few standard operating procedures. The management should consider the organic design and should be flexible in decision making on the basis of time and situation.
- The direct influence of the environment- When organizations are able to anticipate or forecast environmental changes, they may influence the environment directly in many ways like lobbying and bargaining and assigning long term contracts.
Therefore the points for how organizations adapt to their environments are explained above.
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