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Read the passage below and then answer the questions that follow.
The world is fast changing and there is stiff competition among businesses. This calls for innovation in order to survive. Every organization must, therefore, structure itself in such a way that it produces goods and services that meet clients' requirements. Chief Executive Officers must devise ways on how to cope with imminent challenges in order to remain relevant and profitable,
Some of the CEOs have tried to emulate other organizations which have made progress inm innovation. This strategy has proved to be a challenge when CEOs fail to realize that some of the factors that make organizations to stand out may vary based on geographical regions, industry and size. For instance, what may be working for a technological organization in the United States of America might not work for a manufacturing organization in Africa.
In order to cope with changing requirements and competition, organizations have to be flexible. Organization flexibility can be described as the ability of an organization to not only survive difficult conditions but also thrive in the long term. This is achieved by identifying challenges and opportunities and finding solutions that lead to increased productivity. A flexible organization is characterised by four major qualities: ability to innovate rapidly and tailor goods and services to clients' requirements; ability to share information with suppliers and customers; ability to integrate ideas, experiences, knowledge and skills through employees, customers and suppliers; ability to reduce risks and have enough capital to take up new opportunities or face challenges.
There are certain strategies that an organization should adopt in order to remain relevant and profitable. Key among them is maintaining focus on its goals through proper structures, infrastructure, good organizational culture and effective management. This involves being ahead in innovation, mastering changing trends and being conversant with the clients' demands and needs and ensuring that every single employee lives and breathes the organization's values and beliefs.
Adaptability is another way through which an organization can remain relevant. This entails being able to deal with changes in legislature, market trends, customer demands, workforce needs and technological advancement. In this regard, the organization should be able to respond to demands brought about by globalization and keep up with changing employee needs.
Further, an organization should make decisions promptly and with certainty when faced with changing external conditions. Such decisions should be accompanied by prompt and detailed execution. To achieve timely decision-making, an organization must invest in data collection and analysis through its research and development department. Innovation, another strategy that an organization requires in order to remain relevant, demands that it keeps up with changes in technology. Most organizations, however, arc limited by how fast they accept and adapt to changes. Limitations occur due to the high cost of installing new technology which sometimes tends to become obsolete very fast. In addition, organizations may be reluctant to incur the high costs of new technology due to the feeling that the technology already in place is expensive and has not yet given a return on investment. Further, organizations fear the cost of retraining staff on the use of the new technology they are required to adopt.
Besides, an organization must be able to deal with challenges and maintain focus on its core activities. This may be difficult since employees may be overwhelmed by the day-to-day operations of the organization. Therefore, efforts must be made by management to cultivate a culture that rewards the fast thinkers who tackle obstacles and innovators who move the organization forward.
An organization can also remain relevant through partnering with clients and other stakeholders. This involves sharing and creating mutually beneficial relationships that focus on continued improvement of goods and services. In this approach, every stakeholder must be treated as a business partner with insights on new processes and products. In other words, the organization should have "customer is right" attitude so as to design products and services as per the customer's demands.
If these strategies are adopted, business organizations will be competitive and relevant in a sustainable manner.
Adapted from MANAGEMENT MAGAZINE September 2015.
a) Explain the meaning of the following words and phrase as used in the passage:
(i) stiff;
(ii) vary;
(iii) thrive;
(iv) take up;
(v) entails;
(vi) cultivate.
(b) In about 120 words, and according to the passage, explain the strategies through which an organization can remain relevant and profitable.
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