Question

1-5. Define strategic flexibility and explain its implications. Why is organizational learning important to the long-term development of strategic flexibility of organizations that intend to enter overseas markets?

Answer 1

Strategic flexibility refers to the business's ability to identify the changes in the external business environment and quickly commit all the resources to the change to adapt quickly. It also depicts how quickly a business enterprise can respond to the changing business environment. The firms should take steps to restore itself to the previous earning change within the changes in the environment. The managers should anticipate the risks and mitigate them to ensure that the changes do not negatively affect the firm. The managers should adopt the process of organizational learning to adopt the changes at a faster pace. It will also help the employees and the stakeholders to trust the company and its functions. It is the managers' responsibility and obligation to allocate the resources in such a manner that the resources provide gains even in times of change. The organization's leading and its working play an essential role in adapting to the change in the environment. The companies that wish to expand their operations outside the home country should pay special attention to the concept of flexibility. It is because the company's strategies should be flexible to adapt to the dynamic environment. The international market observes changes daily, and the managers of a company should have a certain amount of resources to mitigate and fight against the risks in the environment. Hence, investing in the international market requires flexibility in strategies.

A Thumbs Up! Would be really helpful for me. If you have any questions, please leave a comment and I will get back to you as soon as possible.