A software company innovates constantly to keep up with new ...

[maegan_martin]

A software company innovates constantly to keep up with new rivals that are constantly appearing on the scene.
 
  The software industry itself has an enormous number of players to deal with that includes retailers, online distributors, educational institutions, and government agencies. Where does the company belong on the uncertainty matrix?
  A) cell 1
  B) cell 2
  C) cell 3
  D) cell 4

Question 2

Which of the following best defines environmental uncertainty?
 
  A) the amount of innovation and creativity in an organization's internal environment
  B) the amount of resources and expertise in an organization's internal environment
  C) the amount of change and confidence in an organization's external environment
  D) the amount of change and complexity in an organization's external environment

[popopong]

Answer to Question 1

Answer: D
Explanation: The company's product is dynamic, so it is located on the right side of the matrix. The software industry has a large number of components to deal with, so the environment is complex. A dynamic/complex organization corresponds to cell 4.

Answer to Question 2

Answer: D
Explanation: Environmental uncertainty is a measure of two things: change in an organization's environment with respect to its market, its products, its position in the market, and so on; and the amount of complexity it faces in its market as measured by the number of competitors, customers, suppliers, and so on.