What step can an organization take that will help it adapt quickly to changes in the marketplace?

Developing contingency plans is essential for an organization aiming to adapt quickly to changes in the marketplace. Contingency plans are proactive strategies that outline how to respond to potential changes or unforeseen events. By preparing for various scenarios, organizations can respond swiftly and effectively when market dynamics shift, be it due to economic changes, consumer preferences, or competitive actions.

Having these plans in place allows businesses to minimize disruption and capitalize on emerging opportunities, ensuring they remain competitive. This approach promotes resilience, helping organizations navigate through uncertainties while maintaining operational effectiveness.

Other strategies, such as updating product information, can also contribute to adaptation, but they are often reactive rather than proactive. Encouraging obsolescence and overlooking employee input can hinder an organization's agility, leading to missed opportunities for innovation and growth. Thus, developing contingency plans equips an organization with a framework to manage changes efficiently and maintain its market position.