Question

- Describe how, as a corporate executive you would address each of these forces given the current economy and the rapid pace of techological change. Provide specific examples.

external forces that corporation face is the subject..

Answer 1

The external forces that poses a challenge to the organization are the rapidly evolving technology landscape and the wider macro economic factors.
For example, if the company is a commodity player such as a Oil and Gas giant, then the company is faced with threats of change in the energy mix and rise of electric cars which would reduce the demand for oil as the primary fuel. Thus in order to circumvent this threat, it would be prudent to diversify into sectors such as consumer goods and consumables which has more stable demand profile and is not subject to volatilities seen in the commodity market.
Another possible threat is the slowdown in the overall economy which can also affect the company fortunes. A prudent way to manage this would be to remain cautious in times of robust economic activity with constant focus on cost and reduce unncessary investment and cash outflows. Thus this would help in conserving cash and help the company tide over difficult times with minimal damage even when the global environment is not very conducive.