MGMT 271Exam |Questions with Correct Answers| Latest
Update
Environmental change - ✔✔Rate at which a company general and specific environments change
stable environment - ✔✔rate of change is slow
dynamic environment - ✔✔rate of change is fast
punctuated equilibrium theory - ✔✔Companies go through long periods of stability followed by
short periods of dynamic, fundamental change, and then a new equilibrium.
Mangers may not feel all to confident that they can understand predict and handle the external
forces affecting their business. - ✔✔when environmental change and complexity are at high
levels and resources scarcity is high, uncertainty is high and m
Managers feel confident that they can understand, predict and react to the external forces that
affect their business - ✔✔when environmental change and complexity are at low levels and
resources scarcity is low, uncertainty is low
business confidence indices - ✔✔shows managers level of confidence about future business
growth
Describe the three-step process that managers use to make sense of their changing environments.
- ✔✔• Environmental scanning: Managers search the environment for important events or issues
that might affect an organization. This allows managers to stay up-to-date on important industry
factors and to reduce uncertainty.
• Interpreting environmental factors: Managers determine what these environmental events and
issues mean to the organization. These events could present either threats to or opportunities for
the organization.
• Acting on threats and opportunities: Managers can protect themselves against competition or
capture strategic opportunities.
Update
Environmental change - ✔✔Rate at which a company general and specific environments change
stable environment - ✔✔rate of change is slow
dynamic environment - ✔✔rate of change is fast
punctuated equilibrium theory - ✔✔Companies go through long periods of stability followed by
short periods of dynamic, fundamental change, and then a new equilibrium.
Mangers may not feel all to confident that they can understand predict and handle the external
forces affecting their business. - ✔✔when environmental change and complexity are at high
levels and resources scarcity is high, uncertainty is high and m
Managers feel confident that they can understand, predict and react to the external forces that
affect their business - ✔✔when environmental change and complexity are at low levels and
resources scarcity is low, uncertainty is low
business confidence indices - ✔✔shows managers level of confidence about future business
growth
Describe the three-step process that managers use to make sense of their changing environments.
- ✔✔• Environmental scanning: Managers search the environment for important events or issues
that might affect an organization. This allows managers to stay up-to-date on important industry
factors and to reduce uncertainty.
• Interpreting environmental factors: Managers determine what these environmental events and
issues mean to the organization. These events could present either threats to or opportunities for
the organization.
• Acting on threats and opportunities: Managers can protect themselves against competition or
capture strategic opportunities.
