Airlines Flexibility in Facing Regulatory Uncertainty: To Anticipate or Adapt Harvard Case Solution & Analysis

Deal with uncertainty is one of the major challenges for businesses. One way they can respond is to create strategic flexibility. Looking for answers airlines flexibility regulatory uncertainty associated with their inclusion in the European Union's emissions trading scheme, this paper shows that firms can respond to regulatory uncertainty in the development of this kind of flexibility in two ways: they can either predict the possible effects of changing regulatory conditions and try to prepare to them, or they can adapt quickly and effectively respond to them as soon as the regulatory situation became clear. Examined data from nine case studies, the article defines the organizational capabilities required to conduct proactive and adaptive strategy and shows that each type of response requires a certain bundle of features. "Hide
Source: California Management Review 19 pages. Publication Date: November 11, 2011. Prod. #: CMR496-PDF-ENG

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Airlines Flexibility in Facing Regulatory Uncertainty: To Anticipate or Adapt

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