Based on the default information below, complete the following table:

What is the level of environmental uncertainty for the four companies?

What are the management practices to respond to the uncertainty of the four companies?

This could help you to answer the question

Assessing Environmental Uncertainty Simple + Stable = Complex + Stable = Low Uncertainty Low-Moderate Uncertainty Stable 1. Small number of external elements, and 1. Large number of external elements and elements are similar elements are dissimilar 2. Elements remain the same or change slowly 2. Elements remain the same or change slowly Environmental Change Examples: Examples: Soft drink bottlers Universities Beer Distributors Appliance Manufacturers Container Manufacturers Chemical Companies Food Processors Insurance Companies Simple + Unstable = Complex + Unstable = High-Moderate Uncertainty High Uncertainty 1. Small number of external elements, and 1. Large number of external elements and elements are similar elements are dissimilar 2. Elements Change frequently and 2. Elements Change frequently and unpredictably unpredictably Unstable Examples: Examples: Cosmetics Computer Firms Fashion / Clothing Aerospace Firms Music Industry Telecommunications Firms Toy Manufacturers Airlines Source: Duncan, 1872 Simple Environmental Complexity ConcordComplexStructural Responses to Environmental Uncertainty Low Uncertainty Low-Moderate Uncertainty Stable 1. Mechanistic structure: formal, 1. Mechanistic structure: formal, centralized centralized 2. Few Departments 2. Many departments, some Environmental Change 3. No integrating roles boundary spanning 4. Current operations orientation: 3. Few integrating roles low-speed response 4. Some planning: moderate-speed response High-Moderate Uncertainty High Uncertainty 1. Organic structure, teamwork: 1. Organic structure, teamwork: participative, decentralized participative, decentralized 2. Few departments, much 2. Many departments differentiated, boundary spanning extensive boundary spanning Unstable 3. Few integrating roles 3. Many integrating roles 4. Planning orientation: fast 4. Extensive planning, forecasting: response high-speed response Simple Environmental Complexity ComplexManagement practices to respond The level of Environmental uncertainty Environmental sectors or The Company's name to uncertainty environmental components uncertainty Degree of The number of change environmental elements An increase 1.000.000 "Market sector "customers Doredoo of 30% annually Telecom company) I The industrial sector "competitors 30 Raw materials sector ""suppliers 2.000.000 "Market sector "customers JAA Hypermarket 10 The industrial sector ""competitors 20 Raw materials sector ""suppliers 50.000 "Market sector "customers Carrefour 5 The industrial sector ""competitors 2 Raw materials sector ""suppliers 1000 "Market sector customers Valleys Company The industrial sector ""competitors Raw materials sector ""suppliers