Under which of the following situations, a company is most likely to experience high levels of environmental richness?
A) the company uses a matrix organizational structure
B) the company is not able to obtain sufficient quantity of required raw material due to new government restrictions
C) the company is highly centralized
D) the company has a monopoly in its industry

Question

Quizplus · Accepted Answer

A company is most likely to experience high levels of environmental richness when it has a monopoly in its industry. This is because a monopoly allows the company to control the market and have a better understanding of its customers, competitors, and other environmental factors. It also allows for more stable and predictable business conditions. In contrast, the other choices (using a matrix organizational structure, not being able to obtain sufficient raw material, and being highly centralized) may actually decrease environmental richness as they limit the company's ability to gather information and respond to changes in the environment.

Under Which of the Following Situations, a Company Is Most