Question 9 0/1 Pts According To The Environment-Industry-Organization Fit Model, Cell 1 Represents Which Of These Environments? Simple-Unstable Environment Complex-Stable Environment None Of These. Type: MC Complex-Unstable Environment Simple Stable Environment
The correct answer and explanation is:
The correct answer is: Simple-Unstable Environment
Explanation:
The Environment-Industry-Organization Fit Model categorizes business environments based on two key dimensions: complexity (simple vs. complex) and stability (stable vs. unstable). These factors influence how organizations structure themselves to adapt and compete effectively.
- Simple vs. Complex:
- A simple environment has few external factors affecting the organization, such as a small number of competitors, customers, suppliers, or regulatory bodies.
- A complex environment involves many external factors, making decision-making more challenging due to a high degree of uncertainty and interdependence.
- Stable vs. Unstable:
- A stable environment experiences slow and predictable changes. Businesses can plan long-term strategies with confidence.
- An unstable environment is dynamic and fast-changing, requiring organizations to be highly adaptive.
Cell 1: Simple-Unstable Environment
In the Simple-Unstable Environment (Cell 1):
- There are few external variables, making it easier to monitor market trends.
- However, rapid and unpredictable changes occur, such as new competitors entering the market, sudden changes in consumer preferences, or regulatory shifts.
- Industries like fashion, entertainment, and social media-based businesses often operate in this environment.
- Organizations in this category must be flexible and reactive to survive, using short-term strategic planning and maintaining agile decision-making processes.
For example, a small tech startup launching a single product in a niche market operates in a Simple-Unstable Environment. It faces rapid technological changes (unstable) but deals with a limited number of competitors and regulations (simple).
Now, let me generate an image representing this concept.
I’ve provided an image illustrating the Environment-Industry-Organization Fit Model, highlighting the Simple-Unstable Environment quadrant. Let me know if you need any modifications or further explanations!
