Question

"Firms need to ensure that their strategy is consistent with the environment in which they operate, and that their organizational architecture is consistent with their strategy." Do you agree with this statement? Explain with an example

Answer 1

Answer - Yes I agree with the given statement. The business have the challenge of working in very diverse and dynamic environment and this environment does not remain same always. Hence the business strategies must be flexible enough so that they could adapt to this environment. The non adoption may lead to the business failures.

For example - If the business environement favours the granting of the credit facility to customers , but if a new business established does not follow the practise , it will not be able to survive. It has to adapt itself and plan out such architecture , which gives the credit and maintains the provisions for the same.