International Islamic University-Islamabad

Management- Assignment # 6

Name : Munawar Hayat

Registration# : 30/FMS/EMBA/S-18
Subject : Management
Assignment# : 06

Title of Assignment
Questions and Answers
Chapter #
Question :1

What strategic issues have the potential to create environmental uncertainty in the following four
industries: (a) automobile; (b) social media; (c) newspaper; and (d) medical services?

Answer:

Due to rapid growth in every sectors of life both positive and negative aspects arises. All positive aspects
related to the sector gives a boost up to the to work for betterment of mankind, but there are more other
factors which creates the elements of uncertainty and which affect the progress of activities.

Following is the schedule of possible factors in the above four sectors which are considered as factors of
uncertainty.

automobile social media newspaper medical services

 Pollution due to  Trend changes  Trend changes  Technology changes in
automobile fuel medical equipment’s
consumption
 Price fluctuation  Cost fluctuation of  Cost fluctuation of  New results of medical
basic material of basic material of researches
media medium
 Fear of competition  Cost fluctuation of  Cost fluctuation of  Cost fluctuation of
labour force labour force labour force
 Fear of fuel alternate  Government  Government Epidemics situations
interventions interventions
 Government policies  Socio political  Socio political Price changes in
fluctuation instability instability medicines

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MBA-executive
International Islamic University-Islamabad
Management- Assignment # 6

 Car sharing service Natural calamity

rather than ownership
 Consumer preferences
 Recession and
economic slowdown

Question :2

Contemporary best-selling management books often argue that customers are the most important
element in the external environment. Do you agree? In what company situations might this statement be
untrue?

Answer :

Customers are among the external elements that can attempt to influence, via marketing and strategic
release of corporate information. But ultimately, the relationship with the clients is based on finding ways
to influence them to purchase your product. Companies in the public and private sector must be
customer driven to remain competitive.

There are some situations under which sell is not depend upon the customer.

 Book mentioning a description about any event which was occurred.

 Book on government policies regarding any action of any organizational uncertainties.

Question :3

What do you see as the primary advantage of using big data analytics—understanding the environment
or influencing the environment? Why?

Answer

Big data is a term that describes the large volume of data – both structured and unstructured. Big data
analytics we mean examines large amounts of data to uncover hidden patterns, correlations and other
insights. If the analysis of data is relates to the environment and factors which affect the environment than
first we understand the following things before analyses.

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MBA-executive
International Islamic University-Islamabad
Management- Assignment # 6

The first thing we need to do is determine what data to collect. This is one of the most important steps in
the entire modeling process, because if we collect the wrong type of data, no statistical model of any kind
will allow us to answer our environmental question. While there are many important considerations to
this step, we need to carefully consider the “type” of data and the relationships among variable.

In environmental studies, there are several major types of data::

1) continuous data, 2) counts, 3) proportions, 4) binary data, 5) time at death, 6) time series, and 7) circular
data.
Importantly, here we are principally referring to the response data or dependent variable when a
distinction is made between dependent and independent variables. This is noteworthy, because it is
typically the response variable type that determines the appropriate statistical model or class of statistical
methods.
Environmental analysis is a strategic tool. It is a process to identify all the external and internal elements,
which can affect the organization's performance. The analysis entails assessing the level of threat or
opportunity the factors might present.
Benefits of data analysis related to environment

 Environmental cost–benefit analysis is used for the social evaluation of investment projects and
policies that involve significant environmental impacts.
 Enhance understanding of beneficiaries of ecosystem goods and services;
 Understand modifiable factors and health interventions;
 Provide indicators, indices and tools to assess, track and inform community sustainability.
 Develop capability and expertise in social science(the scientific study of human society and social
relationships) as applied to exposure science (study of an organism's (usually human) contact with
chemical, physical, biological agents or other health risk (eg accidental) occurring in their
environments);
 Communicate research findings in professional meetings and/or peer-reviewed journal articles.

Question :4

Why are interorganizational partnerships so important for today’s companies? What elements in the
current environment might contribute to either an increase or a decrease in interorganizational
collaboration? Discuss.

Answer
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MBA-executive
International Islamic University-Islamabad
Management- Assignment # 6

Forming a partnership with another company can often benefit a small business. It allows two companies
to work together in a symbiotic relationship that does not require them to merge into a single entity. A 2006
paper for the Institute for Advanced Studies describes interorganizational relationships as a way of coupling
the assets of two separate entities to produce something of greater value. Successful partnerships occur
between two companies that deal in similar but not identical businesses. For example, a small automobile
repair shop can partner with an automotive parts store to increase both businesses and develop a solid
customer base.
Smaller business cannot adopt and change because of limited budget, staff and expertise. It is easier for
them to work with another company that specializes in certain roles instead of trying to expand internally.
This also serves the purpose for a temporary and short term need.
There are numerous types of interorganizational relations, including partnerships, project groups, franchises
and outsourcing services, that allow even small-business owners to profit from joint ventures.
The basic things in the current environment which contribute to increase interorganizational collaboration
are:
 Partnerships bring the benefit of "economy of scale" with the sharing of both responsibility and funding
requirements
 It increased credibility in the eyes of public. Credibility in the eyes of the public translates to believability,
which has to be present to motivate a change in behavior.
 Flexibility – A partnership is generally easier to form, manage and run. They are less strictly
regulated than companies, in terms of the laws governing the formation and because the
partners have the only say in the way the business is run (without interference by shareholders)
they are far more flexible in terms of management, as long as all the partners can agree.
 Decision Making – Partners share the decision making and can help each other out when they
need to. More partners means more brains that can be picked for business ideas and for the
solving of problems that the business encounters.

Success factor of interorganizational collaboration:

Key success factors are grouped into seven areas of :
trust and valuing the partner, leadership and managing change, a partnership framework, communication
and interaction, equity and involvement in decision making, power and the role of partnership coordinator.
Question :5
Consider the factors that influence environmental uncertainty (rate of change in factors and number of
factors in the environment) that are presented in Exhibit 3.4. Classify each of the following organizations
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MBA-executive
International Islamic University-Islamabad
Management- Assignment # 6

as operating in either (a) a low-uncertainty environment or (b) a high-uncertainty environment: Hyundai,

Facebook, a local Subway franchise, FedEx, a cattle ranch in Oklahoma, and McDonald’s. Explain your
reasoning.

Answer

Environmental uncertainty is the degree to which an organization lacks factual or competent information
concerning the internal and external operating environment for the organization. Simply, it is the unknown
in the organization and in the field of business relevant to company operation. Below is the figure which
shows the level or intensity of uncertainty due to different factors.

After analyzing the above figure we can distribute/categories the mentioned organization in following:

(a) low-uncertainty environment: Hyundai, Facebook, FedEx, McDonald’s

(b) high-uncertainty environment: a local Subway franchise, and a cattle ranch in Oklahoma.

One of the reason behind this categorical division is that the multinational companies or large companies,
which have many customers and many headquarters, often they have a greater number of external factors
that can change the environment. Therefore, taking into account these types of companies faces rapid
changes in due to different environmental factors either inside or outside the organization and some time
the circumstances may be more seriously damaging, than small businesses where the external factors are
minor, so a rapid change of circumstances do not affect so much to them.

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International Islamic University-Islamabad
Management- Assignment # 6

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