Explain the following answers with a half page each
1. Describe with your own example how change promotes innovation?
2.Discuses briefly contingency framework for using decision models?
3.Briefly explain about dimensions of environmental uncertainty with critical examples?
1. Change often promotes innovation by creating a need for new solutions and approaches to problems. For example, the rise of online shopping has drastically changed the way people shop, leading to innovations such as virtual fitting rooms and personalized shopping recommendations. This change has forced retailers to think creatively and come up with new ways to attract and retain customers. Without the change in the shopping landscape, these innovations may never have been created.
2. The contingency framework for using decision models suggests that the effectiveness of a decision model depends on the specific circumstances in which it is used. This means that there is no one-size-fits-all approach to decision-making, and different situations may require different decision models. For example, a company facing a high level of uncertainty may benefit from using a scenario planning model, while a company operating in a stable environment may find a traditional cost-benefit analysis model to be more effective. By understanding the contingency framework, organizations can choose the decision model that best fits their unique situation and goals.
3. The dimensions of environmental uncertainty refer to the various factors that contribute to the unpredictability and complexity of an organization's external environment. These dimensions include complexity, dynamism, and richness. Complexity refers to the number of factors and variables that affect an organization, while dynamism refers to the speed at which these factors change. Richness refers to the amount of information available about the external environment.
For example, a technology company operating in a fast-paced industry with constantly changing consumer preferences and technological advancements would face high complexity and dynamism. This would create a high level of environmental uncertainty, requiring the company to constantly adapt and innovate to stay competitive. On the other hand, a company operating in a stable industry with few competitors and clear market trends would face lower environmental uncertainty, allowing for more predictable decision-making processes. Understanding these dimensions of environmental uncertainty is crucial for organizations to effectively navigate their external environment and make informed decisions.