Question

Which of the following is a difference between reactors and analyzers?

Answer 1

Answer:

B. Unlike analyzers, reactors tend to react to changes in their external environment after they occur.

Explanation:

You need a strategy to succeed in any competition. No matter where you are competing or what you are competing with, you will need a strategy if you are going to the top. Miles and Snow have identified four types of business-level strategies: defender, prospector, analyzer, and reactor.

Defender Strategy: Organizations that implement a defense strategy try to protect their markets from new competitors. As a result of this narrow focus, these organizations rarely need to make major adjustments to their technology, structure or working methods. Instead, they place a high priority on improving the efficiency of their existing operations. Defenders can be successful, especially when they are in a declining industry or in a stable environment.

Prospector Strategy: Organizations that implement this strategy are innovative, liking novel things, looking for new opportunities, taking risks and growing. In order to implement this strategy, organizations need to encourage creativity and flexibility. They test possible responses to regularly emerging environmental trends. Therefore, these organizations are often the creators of change and uncertainty that their competitors must respond to. In such an environment, creativity is more important than productivity.

Analysis Strategy: Organizations that implement analysis strategies are trying to maintain their existing business and to be somewhat innovative in new businesses. The analyzers have strict accounting and financial controls and high flexibility, efficient production and customized products, creativity and low costs.  

Reactor Strategy: Organizations following the reactor strategy do not have a consistent strategy-structure relationship. Reactors temporarily respond to environmental threats and opportunities instead of defining a strategy appropriate to a particular environment. Sometimes these organizations are innovative, sometimes they try to cut costs, sometimes they do both. Reactors are organizations where senior management often perceives the change and uncertainty that occurs in their organizational environment, but is unable to respond effectively. Therefore, unsuccessful organizations are often the result of reactor strategies.