Question

In the context of the internal and external forces that affect business, which of the following is a difference between stable environments and dynamic environments? a. The stable environment of a company is only related to the external factors affecting the company, whereas the dynamic environment of a company is only related to the internal factors affecting the company. b. In stable environments, fundamental changes are observed in the environment, whereas in dynamic environments, incremental changes occur. c. Companies with stable environments experience changing customer preferences and attitudes, whereas companies with dynamic environments experience a fixed set of customer needs. d. In stable environments, the rate of environmental change is slow, whereas in dynamic environments, the rate of environmental change is fast.

Answer 1

Answer:

d. In stable environments, the rate of environmental change is slow, whereas in dynamic environments, the rate of environmental change is fast.

Explanation:

In context of analyzing business environment, there are two forms of rate of change: stable and dynamic.

In stable environment, the rate of change is incremental i.e things change slowly. The movement from the present to the future is not rapid in a stable environment.  Management can make a safe prediction in a stable environment because what works today will likely work tomorrow. Example of a business in a stable environment is restaurant or food industry.

In contrast, rate of change in dynamic environment is monumental. Things change fast in dynamic environment. There is no safe prediction that works today will work tomorrow. In a dynamic environment, management has to keep up with this fast change by drafting a flexible strategic plan.

So option D is correct : In stable environments, the rate of environmental change is slow, whereas in dynamic environments, the rate of environmental change is fast

All options  are not fundamentally wrong in the context of the difference between a stable and dynamic environment.

Answer 2

Answer:

The correct answer is letter "D": In stable environments, the rate of environmental change is slow, whereas in dynamic environments, the rate of environmental change is fast.

Explanation:

A firm's environment can affect the strategies managers take to conduct a company. Stable environments are predictable and give managers more time to make decisions since transitions are slow. Dynamic environments tend to change rapidly and, opposite to stable environments, require managers to act at the same as quickly as a change takes place.