Answer to Question 1
Environmental complexity is a function of the strength, number, and interconnectedness of the specific and general forces that an organization has to manage. The greater the number, and the greater the differences between them, the more complex and uncertain is the environment and the more difficult to predict and control.
Complexity increases if, over time, a company produces a wider variety of products for different groups of customers. Complexity can increase greatly when specific and general forces in the environment become interconnectedthat is, when forces begin to interact so their effects on the organization become unpredictable.
Answer to Question 2
b