Which of the following is most likely to increase the environmental complexity for a company?
A) the company changes its organizational structure from divisional to functional
B) the company decreases its number of suppliers
C) the company diversifies its business in an entirely new industry
D) the company changes its organizational structure from centralized to decentralized

Question

Quizplus · Accepted Answer

Diversifying into a new industry would introduce new and different environmental factors, creating complexity. Changing organizational structure (A and D) may have an impact on internal operations but would not necessarily impact the external environment. Decreasing suppliers (B) may simplify the supply chain but does not necessarily impact other external factors.

Which of the Following Is Most Likely to Increase the Environmental