Question

explain how businesses use bargaining to adapt to the challenges of the market environment​

Answer 1

Answer:

Adaptive mechanisms

- information management

- strategic responses

- acquisitions and alliances

- takeovers

- mergers

- organisation design and flexibility

- direct influence of the environment

- social responsibility

- lobbying

- networking

- power relationships

Information management - benefit to the business

All changes lead to new information that needs to be distributed to all the relevant parties.

Information must be managed efficiently and a system must be in place so that the relevant staff can easily access it.

Information must be protected and kept secure to protect the company's intellectual property.

Strategic responses - benefit to the business

The way in which a business responds to a challenge should be done in a strategic and effective way.

Every business should have a strategic plan to respond to change.

Staff and management should know and apply these processes.

Acquisitions and alliances - benefit to the business

Business acquisitions can be a safer way of growing a business than simply extending the existing business into an unknown market.

Business alliances can make firms more powerful in negotiations.

Takeovers - benefit to the business

Some businesses choose to purchase another business in a way to adapt to a challenge. The is a specific type of acquisition.

Mergers - benefit to business

In order to respond to certain challenges, businesses may choose to merge with another business. The new business will have a larger market share than either of the original businesses did.

Organisation design and flexibility - benefit to the business

It is important that a business is designed and organised in such a way that it is flexible and can adapt to challenging situations and changes.

Direct influence of the environment - benefit to the business

There are many direct influences, such as pollution,

natural disasters and

resource scarcity.

Businesses should keep up to date with the latest research and policies surrounding these issues.

Eg: The current drought in the Western Cape

Social responsibility - benefit to the business

Businesses that are more aware and involved in social-responsibility projects and programmers can benefit in many different ways, including

Increased job satisfaction

Consumer publicity

BEE point accreditation