Description

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Reply to discussion (Module 07: Industry Evolution and Change)

Q – Please read the discussion Attached and prepare a Reply to this discussion post with comments that further and advance the discussion topic.

The reply needs to be substantial and constructive in nature. it should add to the content of the post and evaluate/analyze that post Discussion

Please provide the references you used.

Ensure zero plagiarism.

Word limit: 200 words.

The Nature of Change: Organizational Ambidexterity and Scenario Planning
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Organizational Ambidexterity
Organizational ambidexterity means that a company can use its current resources
effectively while also looking for new ways to innovate. This skill allows organizations to be
efficient in the short term while still being adaptable for the long term. Research shows that
balancing these two approaches is key to success. Companies that don’t embrace
ambidexterity may face stagnation, inefficiency, or struggle to change with the market.
Benefits and Challenges of Ambidexterity
Achieving ambidexterity helps companies maintain a competitive edge, boost innovation,
and improve learning. Using existing resources ensures efficiency and gradual
improvements, while exploring new opportunities leads to breakthroughs and helps
companies adapt to emerging trends. Firms that can balance these strategies thrive in
unstable industries. However, managing ambidexterity can also create challenges, such as
conflicts in resource allocation and complexities in leadership. Organizations often find it
hard to decide which approach to prioritize, which might hinder their growth.
One way to tackle these challenges is through structural ambidexterity, where companies
create separate teams for exploration and exploitation. Another option is contextual
ambidexterity, where both mindsets exist within the same team. Successful companies like
IBM and Amazon manage to combine both strategies. For example, IBM keeps its core
business running while investing in new technologies like artificial intelligence and
quantum computing. Amazon innovates with projects like AWS while improving its ecommerce platform.
The Role of Scenario Planning in Strategic Change
Scenario planning helps companies prepare for future uncertainties by creating various
possible futures based on economic, technological, and political factors. This tool helps
organizations spot risks and opportunities, ensuring they stay resilient in changing
environments. It’s especially useful in industries where technology evolves quickly,
regulations change, or consumer preferences shift. Scenario planning boosts flexibility,
reduces risk, and supports long-term vision, although it depends on uncertain factors, can
be subjective, and often relies on past data.
One major benefit of scenario planning is that it challenges assumptions and encourages
proactive decision-making. By considering different potential futures, organizations can
prepare contingency plans that enhance their agility. However, accuracy is tied to the
quality of the data and the expertise of those involved. The process can also require
significant resources and may need regular updates to stay relevant. Despite these
hurdles, companies like Shell effectively use scenario planning to navigate challenges like
oil price shifts and geopolitical issues.
Integrating Scenario Planning with Other Strategic Tools
To address its limitations, organizations should combine scenario planning with other tools
like SWOT analysis, Porter’s Five Forces, and Real Options Analysis. This combination
allows firms to evaluate internal and external factors, assess the market, and make
informed decisions. Companies that weave scenario planning into their overall strategy
can better manage uncertainties and seize new opportunities.

For instance, tech companies often use scenario planning alongside innovation plans and
agile methods to stay competitive. By integrating these strategies, they can respond to
disruptions while maintaining focus. Additionally, linking scenario planning to risk
management helps strengthen resilience against possible crises.
Conclusion
Organizational ambidexterity and scenario planning are essential for managing strategic
change. Companies that excel in ambidexterity use their current strengths while exploring
new opportunities, achieving both efficiency and adaptability. Scenario planning gives
organizations the foresight to anticipate uncertainties and respond effectively. By
integrating these strategies with other tools, firms enhance their resilience, promote
innovation, and ensure long-term success in a constantly changing business environment.
References
Grant, R. M. (2019). Contemporary strategy analysis (11th ed.). John Wiley & Sons.
Junni, P., Sarala, R. M., Taras, V., & Sitkin, S. B. (2016). The role of ambidexterity in
responding to paradoxical tensions in organizations. Journal of Management, 42(4), 9951026.
O’Reilly, C. A., & Tushman, M. L. (2016). Lead and disrupt: How to solve the innovator’s
dilemma. Stanford University Press.
Vecchiato, R. (2017). Strategic planning and organizational flexibility: Managing uncertainty
in dynamic environments. Technological Forecasting and Social Change, 118, 27-36.
Wright, G., Bradfield, R., & Cairns, G. (2019). Does scenario planning add value for
firms? Long Range Planning, 52(3), 101865.
Zimmermann, A., Raisch, S., & Birkinshaw, J. (2018). How ambidextrous organizations
navigate paradoxical tensions. Academy of Management Journal, 61(4), 1232-1265.

Reply to discussion (Module 07: Industry Evolution and Change)
Q – Please read the discussion Attached and prepare a Reply to this discussion post with comments that
further and advance the discussion topic.
The reply needs to be substantial and constructive in nature. it should add to the content of the post and
evaluate/analyze that post Discussion
Please provide the references you used.
Ensure zero plagiarism.

Word limit: 200 words.

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