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Managing environmental impacts(Forecasting; Rationing)

Managers have three options when faced with environmental uncertainty.

1. Adaptation(adaptashon),Favourable Influence
a. Buffering:on the input side,buffering usually takes the form of stockpiling
critical resources whose supply in uncertain or whose price
fluctuates(flakchowet) widely over time.on the output side buffering typically
involves building and keeping up warehouse and distribution inventories.By
buffering,environmental uncertainties are absorbed because an organization’s
technical core produces at a constant rate.
b. Smoothing: Where buffering absorbs environmental uncertainties, smoothing
involves efforts to manage environmental uncertainties. Smoothing attempts to
protect the technical core by reducing uncertainties associated with
cyclical(cyklikal) variations in product or service demand..
c. Forecasting;;When buffering and smoothing will not effectively protect an
organization's technical core, organizations can often reduce uncertainty and
behave in a logical, rational manner by developing accurate forecasting
capabilities. To the degree that environmental fluctuations(flotoaition) can be
predicted, they can be treated as constraints and adapted to.
d. Rationing: Finally, when the organization finds that neither buffering,
smoothing, nor forecasting is sufficient to prevent environmental penetration,
organizations can turn to rationing.

2. Favorability influence

a. Advertising and engaging in public relations


b. Boundary spanning: creating roles within an organization.
c. Negotiating contracts
d. Co-opting: absorbing key(ki) members into a policy making structure.
e. Strategic alliance: gaining mutual strategic advantage by forming a
partnership of two or more organizations.
f. Trade associations: organizations composed of individuals or firms with
common business concerns.
g. Political activity

3. Domain Shifts:
Domain shifting Involves moving away from an unfavourable environment to a
more favourable one that has abundance of opportunities and few threats.

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