Areas in Task Environment Affecting the Company

Externally, there are particular factors affecting operations in Tencent Holding Company operations. Understanding both the task and general environment factors provides deep insight to its customers on the firm’s position in Software Services Industry. Opportunity as a general factor is useful by the firm for its growth improvement[1]. It owes to the intense development of the Chinese market segment, that makes it easy for the company to magnify its e-commerce more so in the firm’s website – Papai.com. The entrance of the new product by the firm is a task factor that consolidates its cloud computing techniques. In doing this, this factor ensures that the holdings fully exploit any support from the government. Competition is another factor that hinders strategic mergers and partnership of the holding with relative firms. The firm needs to establish significant affiliations within the country. From previous instances, the company benefits more from partnerships by gaining a larger market share. It is thus able to encounter stiff competition in the global market.

Dimensions of Environmental Uncertainty

As a result of timeless uncertainties in China’s market segment, it often rattles smooth operations in Tencent Holding Company. Environmental risks include the disturbed shifting trends in an economy that threatens a company’s environmental sustainability. For instance, since the start of the year, it has lost about 40% of its market share due to the delay in monetizing of its graphic videos[2]. The uncertainty leading to this owes to the country’s self-regulation in the market’s e-commerce. Tencent holdings might also suffer from Firm-Specific Uncertainties. It goes beyond a region, economy and select industry to the company’s set of task uncertainties. For instance, the company has to reach decisions affecting both management and operations, irrespective of the information at hand. It is a step that focuses on beating pre-set deadlines in activities[3]. The lack of adequate data about the intentions and capabilities of the competitors endangers the firm towards not meeting rightful desires of the clients.

Adapting and Responding Effectively to Environmental Uncertainty

Tencent Holdings can adapt and effectively respond to the environmental uncertainties that keep on rattling its operations. It involves the use of either objective or cognitive uncertainty measures. The objective approach is significant to the firm as it captures the authentic economic environment factors that might lead to uncertainties in a specific market – China. It, however, does not align context and strategy as it only identifies the factors but fails to predict any unforeseen change in the future. For the above reason, it calls for partnering with the cognitive approach, which delineates every individual manager’s perception regarding the market and uncertainties. It means, after identifying the risks, the company’s executives should then play the role of estimating the extents of change of the given market to the firm’s valuation[4]. Through a full acknowledgment of the competitor’s capabilities and existing patterns in the economy, it is easier for the firm to respond to the uncertainties effectively.

Changes Needed in Organizational Design to Improve Responsiveness

A change in Tencent’s organizational design would enhance its responsiveness to the external environment effectively. For instance, the company should transform both its mission and strategy. Every change in an organization must align to the pre-set goals. Changing of the end prospects and approach would define a repercussion of the uncertainty throughout the firm. A change is also essential in the firm’s design structure. It includes the responsibilities of each department, individual roles, and objectives. Major transitions such as acquisitions and mergers take consideration as effective structural changes.

Similarly, a change in the workforce concerning roles and hiring may seem negligible but as a whole, embodies a significant transition in the management. For instance, pieces of training and workshops are essential for the employees so as the company to comprehend change acceptance[5]. Change in the business culture is also significant towards enhancing the responsiveness. Its transition influences the company’s growth and compliance towards the unforeseen environmental uncertainties.

Benefits of Inter-Organizational Relationships

Tencent Holding is at a position to benefit a lot from inter-organizational systems. It refers to the extent to which partnering companies manage existing affiliations between themselves, and respective customers as well. Inter-organizational systems thereby make sure the achievement of efficient communication between the businesses[6]. As a result, it benefits the company through the establishment of a healthy competitive market as well as upgrading particular services deliverable to the end users.

The system is also beneficial as it modifies efficiencies in the supply chain management. It owes to the improvement in operations and communication between Tencent holdings and other relative businesses. It also involves the development of an automatic communication system that transcends all across the companies. It is beneficial as it necessitates for negligible manual operation for the worker[7]. The inter-organizational system is also helpful from its technology exchange perspective as it initially requires technology before its implementation. Sending, receiving and data interpretation requires a firm to have computers, internet, smartphones and intellect computer programs. Therefore, suppose a particular firm introduces a new tech in an inter-organizational system, affiliating companies including Tencent holding, inevitably benefit from the innovation[8]. Generally, application of an inter-organizational system promotes the ease in information exchange. The entire system thus looks forward towards the establishment of first-hand products and programs

Bibliography

Daft, Richard L. Organization Theory and Design, 6th ed. Boston, MA: Cengage Learning, 2010.

Roll, M. Asian Brand Strategy (Revised and Updated): Building and Sustaining Strong Global Brands in Asia, 8th ed. Basingstoke, England: Springer, 2016.

Tse, Edward. China’s Disruptors: How Alibaba, Xiaomi, Tencent, and Other Companies are Changing the Rules of Business, 6th ed. London, England: Penguin, 2015.

[1]Daft, Richard L. Organization Theory and Design, 6th ed. Boston, MA: Cengage Learning, 2010

[2]Roll, M. Asian Brand Strategy (Revised and Updated): Building and Sustaining Strong Global Brands in Asia, 8th ed. Basingstoke, England: Springer, 2016

[3]Roll, M. Asian Brand Strategy (Revised and Updated): Building and Sustaining Strong Global Brands in Asia, 8th ed. Basingstoke, England: Springer, 2016

[4]Daft, Richard L. Organization Theory and Design, 6th ed. Boston, MA: Cengage Learning, 2010

[5]Tse, Edward. China’s Disruptors: How Alibaba, Xiaomi, Tencent, and Other Companies are Changing the Rules of Business, 6th ed. London, England: Penguin, 2015

[6]Roll, M. Asian Brand Strategy (Revised and Updated): Building and Sustaining Strong Global Brands in Asia, 8th ed. Basingstoke, England: Springer, 2016

[7]Daft, Richard L. Organization Theory and Design, 6th ed. Boston, MA: Cengage Learning, 2010

[8]Roll, M. Asian Brand Strategy (Revised and Updated): Building and Sustaining Strong Global Brands in Asia, 8th ed. Basingstoke, England: Springer, 2016

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