Factors That Have Been Used By Managers

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Introduction There are many theories and strategies that managers used to achieve business success. The strategy research and ‘practical’ models assumes that organizations are able to adapt to their environment. However that is not necessarily the case as there are many examples of mainstream approach that has been criticised for not taking into account how environments can also constrain individuals and organisations. Mainstream approach such as organizational ecology and institutional theory is argued for not considering on how environments are also one of the factors that constrain individual and organisations which are also known as task environment. Task environment is the external environment of an organization which affects its…show more content…
Examples of strategies that have been used that do not take environment into account are such as organizational ecology and institutional theory. Organizational ecology is the combination of organizational demography and the population ecology of organization which focus on scientific analysis and study of interactions among organisms and their environment. Organizational ecology utilizes the insights from biology, economics, and sociology, and employs statistical analysis to try to understand the conditions under which organizations emerge, grow, and die. This strategy analyse the effects of the environment on organization structure population. According to the organizational ecology theory by (Dimaggio & Powell, 1983) the strategy research and practical models assume that organizations are able to adapt to their environment. However this is not always true as the theory did not take account of economics problems such as sunk costs caused by environmental changes such as the case of The Celler-Kefauver Act of 1950 was just such a shock, in that it opened horizontal and vertical mergers to federal scrutiny and encouraged firms to spend excess capital on other kinds of acquisitions. Other factors such as not enough information as they

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