Organisation have the capacity to manage and planned changes.

Organisation
need to be flexibilities as they need to have the capacity to manage and
planned changes. Furthermore, they need to be able to adapt to uncertainties
and unpredicted/ unexpected pressures at all levels in the organization.
Additionally, the structure must avoid the inflexibilities related with
hierarchical machine-like organisations, entrenched, powerful interest groups
and inhibitive demarcations among work groups. However, Atkinson and Meager
(1986) argues that organisation need to have flexible job design as this helps
them to have and achieve a functional flexibility among the workforce and this
can also include, the delegation of control and intensive decentralisation. Guest
(1987) stated that flexibilities in organisation and job design can only be
achieved if employees display ‘high organisational commitment, high trust and
high levels of intrinsic motivation’. Moreover, Guest (1987) suggested that more
and more organisation is in capable of meeting their conditions due to the
limits of their abilities to pursue ‘soft’ HRM policies.

Organisations
have flexible issues when it comes to employees as organisations now operate in
uncertain economic times, so they’re more cautious about over committing
themselves in terms or investment into the business. Additionally, the external
environment consists of all the physical and social factors outside of the
organisation’s. the PEST analysis is considered as a factor as its split into
the analysis of the organisation and the market of the company because of the
competitive forces it contains. E.g. demographic change and social change. Baron
(2011) stated that, to create or sustain competitive advantage organisation
need to gather and develop unique resources to help them. (Purcell, 2003) “creating
competitive advantage by insuring that organisation have high quality people (people
with talent, knowledge worker and right people) than their competitors.

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Competitive
strategy consists of having a business model. One of the example we can
consider is GOOGLE, google has one of the best example when it comes to competitive
strategy. ‘advertising enterprises: Internet search and targeted contextual
advertising’. These two are the main reason why google is ahead of its
competitors.