What are the two main factors which determine environmental uncertainty? Discuss how various ...

The two main factors are complexity (simple vs. complex) and rate of change (static vs. dynamic). As illustrated in the text in Exhibit 15.3 (page 538), these factors can be combined to form four levels of perceived uncertainty: 1) low uncertainty (simple, static), for example, a funeral business; 2) moderately low uncertainty (complex, static), for example, an insurance industry; 3) moderately high uncertainty (dynamic, simple), for example, a fashion apparel; and 4) high uncertainty (complex, dynamic), for example, a computer software. This question is particularly challenging since students will have to think of their own industry examples for each level of uncertainty.