For any organization to live and survive, it is important that it responds positively to its environment and the changes in it. The strategic responses of an organization to its environment are as follows:
(i) Least Resistance
Least resistance is a type of response in which an organization simply follows the demands of the environment as it is, without any aggression or strategy formulation.
It just manages to survive by way of coping with its changing external environments. Such an organization is not ambitious and confident and is therefore called a goal-maintaining unit.
Some organisations are very passive in their behaviour and are solely guided by the signals of the external environment.
Such response is chosen because it is a simple path to maintaining basic goals.
(ii) Proceed with Caution:
It is a reactive type of response where organisations take intelligent steps to adapt with the changing external environment.
These organisations monitor the changes in that environment, analyze their impact on their own goals and activities and translate their assessment in terms of specific strategies for survival, stability and strength.
(iii) Dynamic Response:
It is a proactive type of response where businesses regard the external environmental forces as partially manageable and controllable by their actions.
Not only do they recognize and ward off threats, they convert threats into opportunities.
They are highly confident of their strengths and conscious of their weaknesses.