4. Flexibility and adaptability to change
Businesses operate in an uncertain environment where things are always changing. Change is constant and difficult to predict. Managers need to be able to adapt their plans as the environment changes. -
Responds to change and adapts to suit the needs of the organization. Successful managers anticipate and adjust to circumstances. They must be proactive instead of reactive. -
Coping with new government policies, dealing with interest rises. Finding new suppliers. -
For example, the social trends towards the healthy lifestyle took a lot of mangers by surprise. This trend created opportunities for businesses such as gymnasiums and fruit drink bars. At the same time it created threats for many takeaway food businesses. Mc Donald’s managers were flexible and quickly adapted the business to the changed environment, stocking fruits and salads. -
Successful managers have the flexibility to adapt quickly to change and gain a competitive advantage on their competitors by meeting the changed needs of customers more effectively than their competitors. This is the way they increase the business’s market share and grow. -
Flexibility is about responding to change. The managers of some businesses have been highly effective in responding to change. Other managers have lacked the skills to respond to change and all the stakeholders suffered when the business lost value. For example, the managers of Virgin Blue took too long to respond to the rapidly increasing price of aviation fuel. In July 2008 the share price of Virgin Blue had fallen by 75% to just over 50 cents a share. The lack of flexibility reduced the value of the business.
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