Chapter 4
Is changing the organization's domain a feasible strategy for coping with a threatening environment? Explain.
Changing the organization’s domain can be a strategy for coping with a threatening environment, but I am not recommended that strategy. Here are some reasons about that:
1) It is difficult for an organization to change a domain because environment is complex. It included task environment and general environment. Task environment and general environment also include many sectors. Task environment includes sectors with which the organization interacts directly, including: Industry sector, Raw materials sector, Market sector, Human resources sector, and International sector. Also, general environment includes those sectors that may not have a direct impact on the daily operations of the firm but that influence the industry or economy in general ways that in turn indirectly influence the organization. Often included are Government sector, Socio cultural sector, Economic conditions, Technology sector, and Financial resources sector. Managers should consider all these sectors before changing organization domain. It is a huge and complex work for companies.
2) After setting and accessing the changing, the next complex work for organizations is consider whether is fit or not between the internal structure and external environment. For the external environment, each sector in that requires an employee or department to deal with it, so it is cost for companies to hire more employees and set more departments.
3) It will exit many differentiations between before and new domain. Consequently, some departments are needed along with more integrating roles to coordinate the departments and some planning and imitation may be needed, so it will spend a long time for adjusting the differentiations.
4) Expect changing the organization’s domain, there are many methods can be considered, such as formal strategic alliances, cooptation and interlocking...