When a business firm faces an uncertain and unstable environment, it needs a highly flexible structure.

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When a business firm faces an uncertain and unstable environment, it needs a highly flexible structure that can respond to changes rapidly and effectively. A rigid and inflexible structure can inhibit the ability of the firm to adapt to changing external conditions and impede its ability to innovate and grow. Thus, a flexible organizational structure is essential for the success and survival of businesses in tumultuous and unpredictable environments.

When a Business Firm Faces an Uncertain and Unstable Environment