Question

Why are Competitiveness, Productivity, Strategy and Flexibility crucial ( very important) for Organizations and Businesses?

Answer 1

Competitiveness is important for an organization to remain relevant in the industry and to earn the maximum profits. If an organization is not competitive then it will be overtaken by rivals. Competitiveness also improves the profit margins of the company due to competitive advantages. Competitive advantages comes from doing things better than others or creating a differentiation. This helps the company establish itself and create a constant source of cashflow.

Productivity results in economies of scale which reduces the cost of operations and earns more profitability. Good productivity creates efficiences in the systems and ensures that maximum output is generated from the available resources.

Strategy is the framework which is created to guide the company to achieve its objectives. Strategy consists of planning, implementation and execution. An organization has to have a long term or short term strategy which denotes the objectives and the means to achieve these objectives. Without strategy, there will be no directions for the company to go and any direction will be the same. Strategy provides focus to an organization.

Flexibility allows an organization to assess and if possible chamge the course in case of any issues. The business world and industry is constantly evolving and there is lot of ambuigity. Flexibility allows an organization to adjust to changing conditions and react better to these changes. Therefore, a company can be in an advnatagous position if it is flexible enough to take advantage of any developing change in the industry.