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Strategic decisions are made in partial ignorance, as we have seen, because the environment is uncertain. Economic uncertainty relates to the complexity and dynamism of the environment.(a) the Complexity arises from: (i) The variety of influences faced by the organization. The more open an organization is, the greater the variety of influences. The greater the number of markets the organization operates in, the greater the number of influences to which it is subject. (ii) The amount of knowledge necessary. All businesses need to have knowledge of the tax system, for example, but only pharmaceuticals businesses need to know about mandatory testing procedures for new drugs. (iii) The interconnections (tac dong through lai) of environmental influences. Importing and exporting companies are sensitive to exchange rates, which themselves are sensitive to interest rates. Interest rates then influence a company's borrowing costs. (b) «Dynamism. Stable environments are unchanging. Dynamic environments are in a state of change. The computer market is a dynamic market because of the rate of technological change. It is not always easy to detect which environmental factors will be relevant in the future
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