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Part 1 - Essay / long answer - Choose 2 of 4 questions, providing an elaborated (1-3 page) response. 1. Organizational theory

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Answer 1= The current business environment can be said as very volatile or dynamic in nature and the organization operating in this business environment has to face a number of uncontrollable external forces. These forces place a lot of challenge to the organization. The organizations are facing a lot of challenges from the changing business environment, technology, change in the preference and tastes of the customers. The business models are not stable, in fact, every company is rethinking its business model, strategy and the organizational culture.

For the organizations which are operating in such a highly unpredictable and volatile environment, it is important that it always looks for the betterment of the business policies, organizational structure and enhancing the skills and capabilities of its manpower. The companies need to be proactive to make the change in the organizational culture and structure so that the prevailing opportunities can be utilized and threats can be mitigated. The company needs to transfer from one organizational and management philosophy to others. They have to constantly look at the environment and the competitors for their strategy and accordingly make some adjustments in their own strategy so that it can address the competition presented by the other firms.

On the other hand, if the organization is operating in a stable environment it can have a long-lasting business culture and structure as there are hardly any strong competitive forces that are imposing a threat to the organization. These firms have stable operations and the environment and the competition level is quite predictable and within the controllable range.

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