Tuesday, July 22, 2014

telecommunication)

 This company operates in a highly uncertain environment. This uncertainty stems from complexity, dynamism, and richness. The environment is complex because the company offers a wide range of products to many customers and must manage relationships with many outside stakeholder groups, such as customers, suppliers, competitors, and the government. The industry is extremely dynamic because technology changes rapidly and other forces, such as international forces, are also changing. Moreover, competition is intense in the industry. All of these factors increase uncertainty and transaction costs

The company will need to implement more formal inter-organisational strategies. It should consider forming strategic alliances. It can form long-term contracts with suppliers. It can form joint ventures with competitors to share the risks and costs of developing new technology. Alliances also help the organization stay small, so it can react to the environment quickly. The organization may also consider outsourcing to avoid bureaucratic costs

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