7.6 Current Challenges

Strategic Flexibility

Strategic flexibility refers to the ability to recognize major external environmental changes, to quickly commit resources and to recognize when a strategic decision is not working.

New Directions in Organizational Strategies. Strategies that are important in today's environment are as follows:

E-business strategies: Internet has changed and is changing the way organizations do business. Using the Internet, companies have for instance,

Created knowledge bases that employees can tap into anytime, anywhere

Turned customers into collaborative partners who help design, test, and launch new products

Become virtually paperless in specific tasks such as purchasing and filing expense reports

Managed logistics in real time; and changed the nature of numerous work tasks throughout the organization.

7.6 Current Challenges

Customer service strategies:

Companies that emphasize customer service need strategies that cultivate that atmosphere from top to bottom.

It takes giving customers what they want, communicating effectively with them, and providing employees with customer service training.

Innovation strategies:

Strategies should reflect their philosophy about innovation, which is shaped by two strategic decisions: innovation emphasis; is the focus on basic scientific research, product development or process improvement; and innovation timing; becoming the first mover or a follower in the industry.