Question

Pick a real-life organization

1) List the actors in its general environment and task environment (try to name the actors as specific as you can)

2) Assess the environment along the two dimensions of ‘environmental change’ (stable vs unstable) and ‘environmental complexity’ (simple vs. complex). Briefly explain the reasons behind your arguments.

3) Which quadrant of the ‘Contingency Framework for Uncertainty’ does the organization fall? What is the level of environmental uncertainty in that quadrant?

Answer 1

1) List the actors in its general environment and task environment (try to name the actors as specific as you can)

Answer:

Organization is US based and running business in Hong Kong (the China occupied country). The below points highlights their position in market/ working country,

· The company is operating in Hong Kong and base business is accountancy and financial Audits.

· The company is affected by the political change in Hong Kong which is because of the protests against China Government. The protestors are employee of this company. The main issue is how to act in this situations to employee and government.

· The second big issue, company is to negotiation, settlements, accommodations and collaborations with local company to run the business as they are not authorized to work without merging with local companies.

Actors in General Environment: General environment is mainly subjected to the external conditions from the organization and these are generally not in control of organization’s authority/ management. Below are the possible actors for General environment,

· Standard Pay scales for employees.

· Climate and weather.

· Country’s and State’s social culture.

· Political uncertainty.

· Government rule and regulations to fulfill basic needs as per safety and security law.

· Instability created by external factors.

Actors in Task Environment: Task environment is mainly subjected to the external conditions from the organization and these are generally in control of organization’s authority/ management by means of negotiation, settlements, accommodations and collaborations. Below are the possible actors for General environment,

· Government policies for investment.

· Costumer behavior and response.

· Variable Taxes on business.

· Technological changes.

· Social contribution.

· Skills of employees who going to be hired.

· Raw material and Inventory.

· Investment negotiation.

· Collaboration with competitors and vendors.

· Accommodating the value of merging company for business growth.

· Negotiations with local government.

2) Assess the environment along the two dimensions of ‘environmental change’ (stable vs unstable) and ‘environmental complexity’ (simple vs. complex). Briefly explain the reasons behind your arguments.

Answer:

Two dimensions of ‘environmental change’ (stable vs unstable) and ‘environmental complexity’ (simple vs. complex) for General environment: The stability refers to the un-effected with respect to the environment change. For example, if the change in government rules is not effecting the business, means it is safe and stable. Another example is business is good to operate in evaluated weather conditions. This is just a hypothesis test. The simplicity is organization is able to sustain in the worst condition and complexity is they have always fear of uncertainty and unknowing conditions. Means organization cannot figure out the worst conditions. This US company is moderately stable because of continues protests from Hong Kong citizens against China Government. Many of these citizens are working in this US organization. This is complex situation also. They have also done some settlements as they have favored both protesters and Government in diplomatic way.

Two dimensions of ‘environmental change’ (stable vs unstable) and ‘environmental complexity’ (simple vs. complex) for Task environment: If organization is good to negotiation, settlements, accommodations and collaborations in case they loss or more competitiveness, they are stable. Otherwise, they will be unstable condition. The simplicity is organization is enquiring market but complexity is scarification of Global business values. This US organization has set up the policies for deals and as of now they are stable.

3) Which quadrant of the ‘Contingency Framework for Uncertainty’ does the organization fall? What is the level of environmental uncertainty in that quadrant?

Answer: This US organization falls under Quadrant -1 (Low moderate uncertainty). Because they are able to survive in both task and general environment change.