ORGANIZATIONAL THEORY

Organizational Theory



Organizational Theory

Answer 1

The major sources of uncertainty are richness, dynamism and complexity. The environmental complexity affects a small biotechnological company because of the small amount of people involved. With so few numbers completion is not high. Environmental dynamism affects it in ways as the world outside changes. Technology changes and advancements need to be timely incorporated in the organizational processes to ensure organizational growth. regulations change they need to adapt. A company such as this is rich in its amount of scientists. The ways that these affect a larger carmaker company are different ways than a smaller company. They have a large amount of suppliers, customers and stakeholders. The outside environment tends to be more stable in this area so resources are more readily available. The economy can reduce demand which can offset profits though and hurts the competition.

All the environmental forces cause uncertainty like the general environment and the specific environment and all factors which are included in it they have their own effect on the small biotechnology company and a large carmaker the difference is the impact of different factors like if there is small biotechnology company there will be less factors affecting it and their impact will be less as compared to the large carmaker as the large carmaker depends on a greater environment and more forces. “It improves our ability to understand the process that organizations use to manage their environments to enchance their chances for growth and survival. The solutions that exist for managing uncertain resource echanges and…” (Jones, 2008, pp 85).

Answer 2

The thing which motivates the organization to form inter organizational linkages is reputation and trust, cooptation, interlocking directorate. Further the motivation that organizations get to form inter organizational linkages is because it balances the requirement to minimize dependence of resource against what could have been lost in autonomy or choice freedom that may be the result from linkage. However, every firm selects and chooses a strategy that may offer the highest minimization in uncertainty for the minimum loss of control. “According resource dependence theory, organizations attempt to gain control of resources and minimize their dependence on other organizations” (Jones, 2008, pp 79).

The advantage of strategic alliances is that the companies utilize new business opportunities and focus on new businesses instead of spending money on competitive strategies to other organization. However, a strategic alliance is a kind of agreement where at least two or maybe more than two organizations commit to exchange and share their respective resources with each other in order to develop joint business opportunity. Strategic alliances have become the most common way of mechanism to manage symbiotic interdependcies between the organizations that are operating within one country or maybe between the countries.

Answer 3

A low-cost strategy is through an effective way to achieve cost reduction in order to establish a competitive advantage unbeaten. This strategy requires enterprises to achieve economies of scale, experience curve, based on strict control of production costs and indirect costs, to enable enterprises ...