Current business issue reflective paper Essay Example | Topics and Well Written Essays - 1000 words

Current business issue reflective paper - Essay Example Uncertainty is a subjective phenomenon unlike risk whose probabilities are known (Phillip & Patrick, 2013). Bronwynne, et al., 2005 pointed out that uncertainty involves events in which risk cannot be predicted. When one is anticipating some kind of risk, they tend to be cautious. Thus, risk is complicated and rational, but uncertainty is complex and extra rational. In risk, there are knowable options, steps and opportunities, but uncertainty involves a multiple interactive unknowns (Bronwynne, et al., 2005). Uncertainty may relate to profitability, government policies and regulations, investment, demand, cost, pricing and production. Uncertainty in business tends to be an obstacle in decision making. In order to effectively deal with the issue of uncertainty in business, leaders must possess good leadership characteristics. In relation to dealing with uncertainties leaders are classified into three categories; head only- these leaders rely only on analytical tools to make quick deci sions and thus are not able to balance paradoxes in today’s ambiguous world. Heart only- these leaders are able to establish a strategy through being open to a wide range of opinions. This may hinder them from identifying future trends. Guts only- these leaders believe in their instincts. ... It is advisable to prepare for multiple outcomes other than predicting only one outcome. This is of great help to a business because the planned for outcome may fail to happen and instead another one occurs which had been predicted and planned for, this helps the business leader to be always on their toes and ready for any eventualities (McLoughlin & Aaker, 2010). It also saves the business owner the loss of resources in terms of finances and time. Business leaders should have the knowledge to identify and rely on the predictable elements of the situation. Some situations can be predicted, and this could be of great help to the businesses because one is almost sure that a certain eventuality will occurs and hence proper strategies are put in place to deal with such eventualities (Bronwynne, et al., 2005). Therefore in order to be able to identify the predictable element, one should be very alert and understand their business trends fully. If for example the problem is a natural calam ity like flood, one can predict at what time of the year the floods are experienced. In order to effectively deal with uncertainties in business, it is vital to be agile and to respond quickly to any occurrences. Once an undesirable occurrence befalls the business, leaders should be aware, listen and detect occurrences as they happen. They should adopt the ‘detect and respond’ mechanism in order to effectively tackle the problem. They should also empower and mobilize their people to act fast and decisively. However, this requires managerial and leadership skills. For example, if the uncertainty befalls an organization, the manager should be in a position to