Question

1. You are a consultant to a large telecommunications company that markets many products to many customers. The company has many competitors. Describe the level of uncertainty and Analyze all interdependences that can be used for managing this organizational environment.

Answer 1

The company operates in highly uncertain environment. This uncertainty stems from complexity, dynamism and richness. The environment is complex because the company offers a wide range of product to many customers and must manage relationship with many outside stakeholders 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 this factors increase uncertainty and transaction cost. The company will need to implement more formal inter-organizational 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 risk and costs of developing new technology. Alliances allow the organization to react to the environment quickly. The organization may also consider outsourcing to avoid bureaucratic costs.

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