In an effort to maintain and control the available resources, organizations try to work on balance of the linkages between them and other organizations as well as that within their own territory. There are two strategies applied in order to achieve this (Jeffrey A4). First of all it is important to establish favorable linkages with the key elements in the environment and, secondly, it is vital to nature the environmental domain. We will take a deeper look at the two approaches in the next paragraphs.
Establishing Inter-organizational Linkages
The first strategy in implementing inter-organizational linkages is the ownership approach. An organization uses this approach to buy a part or all of the controlling interest in the other organization. Once this organization has claimed ownership on the controlling interest, it can gain access to the products, technologies in use, and other resources that it currently does not have for itself. The greater the deal of ownership an organization is involved in, the greater the control it has.
Secondly, there is a need of getting into contracts to form formal strategic alliances with the other organizations. These can be in the form of license agreement involving the purchase of the other organization’s assets and through supplier agreements that involves the selling of a firm’s products to the other. This method locks the other firm engaging it into building the contracting firm.
Cooptation is a strategy that involves leaders who form a part of the environment and are made part and parcel of the organization. This strategy directs the services of the potential customers and suppliers towards the organization.
The organization can as well work on advertisements to gain ground. This can be achieved through joint public relations with the affiliate organization. It can as well use an appointed executive panel for recruitment to aid in the recruitment of its leaders. Joint adventures can be implemented allowing the other organizations to be formed with the concerned organization as a parent.
Controlling the Environmental Domain
This involves an organization working on changing its environment to achieve the better performances. The approaches used will be discussed in the following paragraphs.
An organization can choose to change its domain trying to find a suitable environment that would allow it to perform at its best. This new environment is supposed to provide it with advantages such as accessibilities of suppliers and affluent customers and the existence of a low taxing scheme. The organization will try to make for an environment that favors both its supply and sale of its products.
Secondly, the organization can work on political strategies. This can be done through advocating for the government to provide favorable operational conditions. It can change the governmental strategies of legislation and regulations.
Engaging in illegitimate activities is another strategy. Once an organization has realized a weakness, it may delimiter the services channeled to that end to produce more. Some tend to tap illegally to reduce their expenses.
The organization can as well work on forming trade associations to control the environmental domain. This strategy ensures that the firm has total or just enough control of the environmental supplies and market. The firm can therefore gain access to supplies. The trade associations can be formed by having the firm and its affiliates come together to work as a single team.
The organization can as well tighten its own operational rules to improve its construction in an effort to establish a better delivery of the product into the market than the other firms. This is meant to strengthen the organization’s relationship with the customers as compared to that of the competitor’s. The customers in this strategy are made to prefer the company to the others. The trust is gained through standard and overwhelming services. The customers are ever rest assured of the best if they contact the firm. Some organizations have strict rules regarding the means of obtaining services.
The organization can as well educate the staff and keep on updating them on the new techniques being deployed within. They should not be made surprised every time by the processes that they are meant to use. It is ore important to train the staff to be friendly enough to the customers. The customers should not be handled in a way suggesting that they are not contributing anything to the firm. They should be made know that they are important members of the organization (Thakadu A1).
To attract more customers, the organization should work on promotion measures. This will welcome more of them and make the relationship better. It should also compensate for loses that it causes to show its concern. Through these methods, it gains control of the environment.
There are two possible strategies that an organization can use to control the environmental resource. The first approach is creating external linkages which can be done through working on ownership plans, contracts, cooptation, executive recruitment, and advertising. The second approach can be used to control the environmental domain. This can be achieved through methods such as changing domain, introducing and maintaining political activities, trade associations, and other illegitimate activities.