Which of the following statements is definitely true regarding environmental dynamism?
A) As a company decreases the number of suppliers, its environmental dynamism increases.
B) A company can reduce its environmental dynamism by selecting a decentralized organizational structure.
C) When a company enters into a foreign market, the dynamism of its environment increases.
D) Environmental dynamism and environmental richness are directly proportional to each other.

Question

Quizplus · Accepted Answer

When a company enters into a foreign market, it faces many new challenges such as cultural differences, legal regulations, and political and economic conditions. Such challenges increase the dynamism of the company's environment. Option A is incorrect because with fewer suppliers, a company's environmental dynamism may decrease as it has fewer stakeholders to interact with. Option B is incorrect because a decentralized structure may increase a company's adaptability but does not necessarily decrease environmental dynamism. Option D is incorrect as these are two separate concepts and are not directly related to each other.

Which of the Following Statements Is Definitely True Regarding Environmental