Planning in an organization 25 years ago was much simpler than today. There was less competition from around the world, there were less regulations and political influences. There was also less social influence by way of social concerns and social media. Companies today are faced with challenges not seen by companies 25 years ago. In 1991, the World Wide Web was born (Elon University School of Communication, 2019). Smartphones were not invented, nor were internet search engines such as Google. Many companies were taken by surprise from the internet’s rapid development and reach. For example: companies such as video stores, which rented VHS movies from storefronts, were faced with the evolution and threat of online streaming services. Newspapers, magazines, and encyclopedia’s saw their otherwise successful business models threatened by online news feeds, social media feeds and discussion boards. Even in schools, chalkboards have been made obsolete by whiteboards. Whiteboards in turn are giving way to networked tablet computers, which allow communication between classmates and the instructor, virtual field trips and assignment submissions (Wahleithner, 2017).
“In the developed world, we enjoy better medicines, connectivity, and mobility than most of us could have imagined even 20 years ago. The promise of global progress has become a reality for many- but not for all” (Reeves, M. & Harnoss, J., 2017). As these examples show, companies which do not plan for contingencies and foresee the direction of their competition face the serious risk of falling behind and becoming extinct. Companies do not just have to worry about domestic competition. There are global competitors in just about every business field. Companies cannot be satisfied with status quo if they expect to be competitive and survive.
Chapter 4, Question 2.
Changing an organization’s domain is absolutely a feasible strategy for coping with a threatening environment. Companies which are not receptive to changing their domain in response to constantly evolving competition are likely going to see their competitors succeed in doing so. The non-receptive companies may see themselves becoming extinct.
An interesting recent domain change involves the Ford Motor Company. In 1903, Henry Ford announced “I will build a car for the great multitude” and produced a car which was affordable for the common person (The Library of Congress, 2019).
The Model-T was efficiently manufactured by improvements and standardizations in its assembly lines. Ford continued for the past century to do business as an automotive and truck manufacturer. Ford recently announced it was shifting the focus of the company to trucks and sports utility vehicles, and by 2020 “90% of Ford’s North American lineup will be trucks, SUV’s and commercial vehicles” (Johnson, 2018). The company recognized that most of their business is based upon the success of their F-150 pickup truck line and less and less people are purchasing their passenger cars. Another significant redirection for Ford is that “in 2016 Ford paid about $50 million to acquire Chariot, a startup mobility service” (Johnson, 2018). This venture is directed as a subscription service for work commuters; making the service competitive with developing ride-share models such as Uber and Lyft. Ford’s preemptive strike is in preparation for what forecasts as changes to its industry.
Chapter 6, Question 3.
The learning organization described in Chapter 1 discussed organizational design with dimensions of “Formalization, Specialization, Hierarchy of Authority, Complexity and Centralization” (Daft, 2016, p 17). Organizations were basically very formalized, with orders from the top trickling down to the bottom, organizations were traditionally more static, with changes difficult to accomplish. The transnational model as described in Chapter 6 is detailed as follows:
1. Assets and resources are dispersed worldwide into highly specialized operations that are linked together through interdependent relationships.
2. Structures are flexible and ever-changing.
3. Subsidiary managers initiate strategy and innovations that become strategy for the corporation as a whole.
4. Unification and coordination are achieved primarily through corporate culture, shared vision and values, and management style, rather than through formal structures and systems. (p.244-245)
A transnational model would work in a huge global firm as it is designed to meet the goals of global organizations “…by creating an integrated network of individual operations that are linked together to achieve the multi-dimensional goals of the overall organization” (Daft, 2016, p. 244). This produces a coordinated model which promotes coordination and communication between units directed at accomplishing the organizations’ goals. “The transnational model is useful for large, multinational companies with subsidiaries in many countries that try to exploit both local and global advantages…” (Daft, 2016, p. 242). Past organizations found themselves paralyzed by tradition and failing to forecast and plan for future needs and competitors. Using a strict vertical hierarchy creates an environment where information is filtered and restyled before reaching its intended leader. Then the responding information must flow back along the same filters and channels. A more horizontal leadership approach, with shared vision, allows decisions to be made more rapidly and in response to local issues. The transnational model is more like an ant colony in operation, with decisions towards the goals of the organization able to be made in the field, than a conducted orchestra, with one director pointing out directed tasks.
Question 4.
A biblical worldview can be applied first by remembering Philippians 3:13-14 (NKJV) which states”13Brethren, I do not count myself to have apprehended; but one thing I do, forgetting those things which are behind and reaching forward to those things which are ahead, 14 I press toward the goal for the prize of the upward call of God in Christ Jesus.” For-profit organizations are in the business of enterprising and making money. This must be balanced in accordance with the word of God and not to be done out of greed or pursuit of power. God wants us to prosper, but without sacrificing our values and ethics. 1 Timothy 6:10 (NKJV) states: “For the love of money is a root of all kinds of evil, for which some have strayed from the faith in their greediness and pierced themselves through with many sorrows.”
References
Daft, R. (2016). Organization Theory & Design . In Organization Theory & Design. Boston, MA: Cengage Learning.
Elon University School of Communication. (2019, April 6). 1960s-1990s Internet. Retrieved from Imagining the Internet A History and Forecast: http://www.elon.edu/e-web/predictions/150/1960.xhtml
Johnson, M. (2018, May 29). How Ford Is Thinking About the Future. Retrieved from Harvard Business Review: https://hbr.org/2018/05/how-ford-is-thinking-about-the-future
Reeves, M. &. (2017, February 27). An Agenda for the Future of Global Business. Retrieved from Harvard Business Review Leadership: https://hbr.org/2017/02/an-agenda-for-the-future-of-global-business
The Library of Congress. (2019, April 7). American Memory: Today in History: July 30. Retrieved from The Library of Congress American Memory Home: http://memory.loc.gov:8081/ammem/today/jul30.html
Wahleithner, G. (2017, September 22). Tablets in the Classroom: Beneficial? Retrieved from The Classroom of the Future: https://sites.tufts.edu/gwahleithnercapstoneblog/2017/09/22/blog-post-2/
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