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Competitive Interdependence in Resource Management Essay


Ensuring efficient management of resources, an organization needs to define its level of interdependence. The two main kinds of resource interdependence include; Symbiotic and competitive interdependence with their key stakeholders. An organization driven by success must put on measures to adequately manage their resource. Management of resources involves the organization interacting with its consumers, suppliers, and its market rivals to deliver an elaborate means for curbing any unhealthy situation. For instance, symbiotic interdependence advocates for the strong association between organizations, its customers, and suppliers, while competitive interdependence defines the association between an organization and its rivals interaction (Jones, 2010, pg.37).

Regarding the need to coexist efficiently, an organization must design modalities that realize its goals as well as ensuring healthy practices within its environment. Such methods employed to promote both competitive and symbiotic interdependence include; proper reputation development, merging with other cooperate bodies, collusion and Alcatel, and other strategies. The following discussion focuses on strategies employed to manage resource interdependence in an organization. The measures discuss both symbiotic and competitive interdependence

One of the strategies used to promote competitive interdependence involves merging with other firms. Mergers take place in a scenario where the competition level becomes unhealthy. Therefore firms that engage in producing products come together and collectively conduct offers to their services. Various aspects of mergers include using the same trade name, collectively producing their merchandise as well as doing similar product branding. (Mackenzie, 1986, pg. 123).

Mergers result due to many advantages. Strategically firms come together intending to control market shares in terms of sales and supplies. Larger firms have a broader market perspective since they are capable of making greater supplies and, thus, many sales. Mergers are desirable, especially when one firm operates under the margin of collapse. By coming together, they would collectively revive their resource base. Firms tend to enjoy more economic privileges resulting from mergers compared to firms that are not merged. Such privilege includes more financial bargains. For instance, larger organizations have the potential to acquire higher loans since they enjoy a lot of financial security. Consequently, it’s reasonable for an organization to merge to promote competitive interdependence. Competitive interdependence also culminates into good service provision since all firms under the merger amalgamate their ability, resources, and skills (Bollingtoft, 2009, pg. 234).However, mergers result in many challenges. One of the greatest challenges is the complete absorption of smaller firms by larger ones. Small firms lose their reputation, identity, and personal market bargain. Absolute absorption of these organizations is undesirable, as it leads to an eventual collapse of such firms. Therefore, before any organization gets into a merger, it should consider the advantages and other consequences of the interaction (Jones, 2010, pg.56).

For an organization to effectively promote symbiotic interdependence, it employs the strategy of creating a good reputation with its clients. A good reputation is a primary gain that any practical organization would yearn to meet. The common theory states that a good reputation sells by itself. For the sake of success, an organization must create a good reputation before the public watch fare. This is because most suppliers would wish to associate with a reputable firm. Aspects of the good public image include; selling good and quality products to its customers, advising customers on product use, and offer good terms of sales. After-sales services also contribute to the organization’s healthy operation (Mackenzie, 1986, pg. 132). Another factor that promotes symbiotic interdependence involves good treatment of the suppliers. Suppliers deserve fair terms of trade since their services are important to the organization. Therefore by giving allowing reasonable payment duration to its suppliers will influence their reputation. For firms to hold a good reputation before its stakeholders, it must then adhere to the rules of supply. This is achievable through making orders and payment in a good time. Other considerations that an organization must carry out involve employing courtesy and diligence in offering their services to the suppliers (Bollingtoft, 2009, pg. 67).Proper application of this strategy ensures more benefits to the firm. For instance, a firm that identifies with more consumers and suppliers will have a greater market turn out. With increased sales, an organization will generally expand on its operation.However, the failure to carry out this strategy will completely ruin the organization. For example, firms that exclusively offer discounts may run out of finance s if customers default payments. On the other hand, firms’ operation declines if they offer more credit sales to its clients than it receives cash purchases. Finally, an organization may suffer intense loss in the hands of suppliers, in a case where advance payment. Suppliers can deliberately defy their order, or give substandard products. (Davidson, 1982, pg. 34).

In conclusion, according to the strategies discussed above, it’s realized that both competitive and symbiotic interdependence is desirable. Therefore a measure that eliminates any possible circumstance of disharmony is avoided. With regard to symbiotic interdependence, a firm must be conscious of offering its services to the client, as well as properly collaborating effectively with its rivals.

References

Bøllingtoft, A. (2009). New approaches to organization design: Theory and practice of adaptive enterprises. Berlin: Springer.

Jones, G. R. (2010). Organizational theory, design, and change (6th ed.). Upper Saddle River, New Jersey: Prentice Hall.

Mackenzie, K. D. (1986). Organizational design: The organization audit and analysis technology. Norwood, New Jersey: Ablex Publishing Corporation.

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IvyPanda. "Competitive Interdependence in Resource Management." July 28, 2020. https://ivypanda.com/essays/competitive-interdependence-in-resource-management/.

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IvyPanda. 2020. "Competitive Interdependence in Resource Management." July 28, 2020. https://ivypanda.com/essays/competitive-interdependence-in-resource-management/.

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IvyPanda. (2020) 'Competitive Interdependence in Resource Management'. 28 July.

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