Answer to Question 1
Organizations that follow an r-strategy are founded early in a new environmentthey are early entrants. Organizations that follow a K-strategy are founded latethey are late entrants. The advantage of an r-strategy is that an organization obtains first-mover advantages and has first pick of the resources in the environment. As a result, the organization is usually able to grow rapidly and develop skills and procedures that increase its chance of surviving and prospering. Organizations that follow a K-strategy are usually established in other environments and wait to enter a new environment until the uncertainty in that environment is reduced and the correct way to compete is apparent.
Answer to Question 2
According to the population ecology theory, two factors account for the rapid birthrate. The first is that as new organizations are founded, there is an increase in the knowledge and skills available to generate similar new organizations. The second factor accounting for the rapid birthrate in a new environment is that when a new kind of organization is founded and survives, it provides a role model. The success of the new organization makes it easier for entrepreneurs to find similar new organizations because success confers legitimacy, which will attract stakeholders.
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