Epistemology Corporate Strategy And Academe

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Epistemology Corporate Strategy And Academe
Edward H Bowman
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The next goal, risk aversion, also labelled flexibility, may in fact represent a potential conflict with both profit and growth. Though there are "returns to risk" according to economic theory, and firms by both choice and circumstance experience the risk and the returns, they normally seek to limit risk, and in a number of ways. Analysis, and its cost, are clearly one way to both choose and limit risk, but this is not the point under discussion here.
-13- Ansoff (op. Ctt . ) develops the conce
...pt of flexibility at some length, and separates its attainment into two types, external and internal. Both types of behavior or adaptation, however, are essentially addressed to risk aversion, and some risk-aversion is assumed to serve the generic goal of survival.
External flexibility includes such ideas as products in a number of industries, customers of a wide variety, markets in a number of countries, and products and processes dependent on various technologies. With all or some combination of the above, things can unexpectedly go sour in one place due to any number of reasons, and the basic life and health of the firm is not threatened.


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