Question

The new CEO of Opacity Enterprises is determined to make the long-established firm strategically flexible. The CEO should understand that the task is not easy, largely because of inertia that can build up over time.True / False.

Answer 1

Answer:

The correct answer is True.

Explanation:

Strategic flexibility refers to the flexibility that the company possesses, as a whole, in its active participation in the market. It is the point of view of senior management, focusing on the ability of the company to proactively modify the nature of its activities or respond quickly to changes in the environment in a way that develops or maintains its competitive advantage. This type of flexibility offers the organization the possibility of modifying or replacing current strategies in terms, for example, of the application of new technologies or the renewal of its products, the creation of new product-market combinations or the use of power of market to prevent the entry of competitors.

Organizational or structural flexibility refers to the possibility for the organization to modify the distribution of tasks, the content of processes or internal communication channels. This type of flexibility can affect the limits of the organization, reaching, in its extreme degree, promoting an “organization without borders.” (Note: An organization without borders is one that has ambiguous rules regarding who is a member of the organization, the identity of the departments and the responsibility of each job, the external borders of these organizations are blurred, so that, for example, they increase the outsourcing of activities or temporary work relationships. internal frontiers: decentralization and coordination between functions and teams are intensified or descriptions of generic jobs are elaborated, emphasizing more the values ​​associated with the job than the specific and predetermined duties). Human resources management has much to contribute, along with managers from other areas, to achieve organizational flexibility in a company.