With an Ambidextrous Organization, There Is a Tension Between Succeeding

question 177

Essay

With an ambidextrous organization, there is a tension between succeeding at what the organization is good at now and the opportunities immediately available and the development of new directions.This tension is sometimes referred to as exploiting versus exploring.Please explain the meaning of these two words and explain how an organization's ambidextrous structure can balance the two.

---

Definitions:

Total Direct Materials Cost Variance

The difference between the actual cost of direct materials used in production and the standard cost of those materials.

Fixed Overhead Cost

Expenses that do not change with the level of production or sales, such as rent, salaries, and insurance.

Volume Variance

A measure used in budgeting and accounting to show the difference between expected (budgeted) and actual sales volumes, affecting revenue or costs.

Direct Labor Time Variance

The difference between the estimated time to complete a task and the actual time taken, affecting cost management in manufacturing.